If you believe that a robust and efficient logistics strategy isn’t crucial for your business, think again.
A Capgemini study starkly highlights the stakes:
55% of customers are ready to defect to a competitor for quicker delivery!
At Flancare, we’re attuned to these critical market shifts.
As an experienced 3PL logistics provider, we’re committed to enhancing your supply chain, ensuring it not only meets but exceeds the contemporary demands of your customers, pushing you ahead in the competitive landscape.
WHAT IS LOGISTIC STRATEGY?
A logistics strategy is a comprehensive plan designed to manage the procurement, movement, storage, and distribution of resources and products from origin to consumption efficiently and cost-effectively.
Goal?
By aligning these stages effectively, a logistics strategy helps businesses enhance operational efficiency, reduce costs, improve customer satisfaction, and maintain a competitive edge in the market.
THE MOST COMMON TYPES OF LOGISTIC STRATEGIES
- Lean Logistics: Focuses on minimising waste in all forms, including time, materials, and energy, to optimise the flow of goods and reduce costs.
- Fourth-Party Logistics (4PL): Involves an integrator that manages all aspects of a company’s supply chain, often including the coordination of multiple 3PLs (Third-Party Logistics providers).
- Vendor-Managed Inventory (VMI): The supplier manages the inventory levels of their products at the customer’s location, which can lead to better inventory accuracy and reduced stockouts.
- Integrated Logistics: Involves the coordination and synchronisation of all logistical functions within a company, often supported by advanced IT systems to streamline operations.
- Agile Logistics: Prioritises flexibility and responsiveness to quickly adapt to market changes and customer demands, often utilising real-time data and technology.
- Reverse Logistics: Manages the return of goods from the customer back to the seller or manufacturer for refund, replacement, or recycling, thus closing the loop in the supply chain.
- Global Logistics: Manages the movement of goods across international borders, focusing on optimising processes for customs, export, and import regulations, and international shipping logistics.
- Just-in-Time (JIT) Logistics: Aims to have inventory arrive exactly when needed for production or sale, reducing inventory costs and increasing efficiency.
GOOD TO KNOW
- Logistics costs make up some 13% of GDP.
- 55% of customers will switch to a competitor if it offers faster delivery.
- Improved logistics strategies, can reduce inventory levels by up to 10-30%
- Optimised logistics strategies could decrease CO2 emissions by up to 16%.
- 79% of companies with high-performing supply chains achieve revenue growth superior to the average within their industries.
- Integration of AI and IoT can lead to 15% increase in logistics efficiency.
STRATEGY VS. PLANNING VS. TACTICS
Logistics strategy, logistics planning, and logistics tactics, though interconnected, serve distinct functions within the broader scope of supply chain management.
- Logistics Strategy is the overarching framework that defines the long-term goals of distribution and fulfillment operations, aligning them with the company’s business objectives.
- Logistics Planning, on the other hand, deals with the implementation of the logistics strategy.
- Logistics Tactics are the day-to-day actions and decisions made to manage the immediate and operational issues within a logistics network.
Each level supports the next: strategy provides the blueprint, planning organises the blueprint into actionable steps, and tactics ensure the execution of those steps in the most efficient way possible, adjusting dynamically to immediate challenges and opportunities.
If you’re ready to enhance your logistics approach and gain a competitive edge, don’t hesitate to reach out. Contact us today to get a quote and discover how Flancare can transform your logistics operations and drive your business forward.
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