Logistics – Process Improvement.

From small logistic companies that own a few trucks to giants that own all (air, sea, and land) means of transportation; collective focus is on reducing their logistics cost in order to increase profit margin. There is a simple solution to achieve logistics efficiency and effectiveness and that is "Process Improvement". This process can be broken down to the following steps,

·        Analyze logistics for potential problems

·        Make notes for process improvement and incorporate corrective measures.

·        Implement & monitor continuously for improvement.

Companies engaged in any business need to keep the “Learning Cycle” going in order to improve their prevailing processes, introduce newer efficient & effective means through research, and save from potential risks and associated costs thereby.

Appoint responsibility to the logistics officer to record a short (3 to 4 minute) survey every time a customer is delivered products for ratings on broad parameters such as speed of consignment delivery, safety measures, and customer service. In case of unsatisfied customer or constructive input from any individual, special notes must be made for presentation to reporting officer.

Vehicle Life cycle position, Maintenance, Time, Distance covered for projects, route deviations (if any), & fuel consumption stats must be maintained electronically by an outsourced/ internal team in order to monitor vehicle efficiency and logistics performance. In case of discrepancy with meeting of objectives of logistics-7 R’s, corrective measures can accordingly be taken whether it involves vehicle maintenance/ up-gradation, revision in route planning, or merely employee counselling.

Information gathered by stakeholders is of high value as it enables a supply chain manager to bring the logistics cost down. Sometimes it takes as little as a group activity to understand small problems that can be catered by immediate or middle management therefore bringing up employee morale. Rest of the times it requires studying the costs associated and directly incurred by various vehicles in order to identify and place in category for observation, maintenance, and replacement. This is however, a continuous process and involves monitoring and identification of room for improvements on regular basis. And in order to reduce this monitoring cost to organizations, it is highly recommended that these be contracted & outsourced to companies that install tracking systems, to also maintain data and provide reports on defined time basis. Such information can be used by supply chain officers to decide and conclude improvements in the current logistics strategy and think & plan ahead.

Benefits of using this monitoring service are only a few at individual level but when you are thinking in terms of whole fleet and numerous assets a company owns, this has potential possibilities for reducing costs for the business. It is not only limited to reducing theft risks but also to fuel efficiency monitoring and securing faster delivery of goods in a more appropriate manner as installation of such systems incorporates a thought of continuous monitoring. This has numerous applications and can be used on different valuable assets as well.

A recommendation for such a service is “Monarch Track” that is a sister concern to a trending MNC “Monarch Tracking” which is a “GPS tracking” manufacturer providing Internet-based access to LIVE vehicle tracking and asset management. Link to website is http://www.monarchtrack.com/.