6 Smart Investments to Improve Your Logistics Performance

You can easily describe logistics as moving inventory, in any of its forms, from point A to point B.

But of course, within that description hides a huge amount of detail, planning, and synergy. If you’re not careful, one weak link in the chain can easily cause issues for the rest of your planning apparatus.

Once certain firms reach a given size, they’re much more interested in improving their logistics for obvious reasons.

Now, there are great networks out there to buy into, sometimes much more cost-efficiently than implementing your own strategy.

But for firms looking to expand their own logistics and not have to rely on external partners, freedom, saved opportunity costs, and sheer capability are decent motivators.

In this post, I’ll discuss six of the main investment priorities to consider when improving in-house logistics, and how to apply them correctly:

1. Route Planning

Figuring out the most efficient paths for deliveries or pickups is going to take a fair amount of time, as that’s not always just about finding the shortest distance on a map.

Traffic patterns are different throughout the day, and delivery windows need to be factored in too. So, what works one week might not be the best option the next.

Software tools have made this process so much easier. They can look at multiple considerations at once and suggest routes that save time and fuel.

A good routing system also looks at things like vehicle capacity and driver schedules. It ensures resources are being used correctly and you’re not caught out at a bad time.

If done right, the savings add up quickly in fuel costs and more deliveries can be completed in a day. 

Read 7 Ways to Reduce Your Supply Chain and Overhead Costs

2. Vehicle Outfitting

Having vehicles is great, but making sure they’re properly set up for the job is generally important if you have any minor kind of niche at all. Of course, the type of outfitting needed really depends on what’s being moved around.

Hauling temperature-sensitive goods is going to need refrigeration units, pr other cargo might need specialized compartments, and getting these details sorted out early will help you avoid poor orders.

There’s also the whole question of reliability and keeping things running smoothly.

Vehicles that are outfitted with quality components will obviously break down less often, which keeps deliveries on track.

Investing in durable trailer manufacturing, for instance, ensures that the equipment can handle heavy use without needing repairs every other week.

Tracking technology is worth thinking about too, because knowing where vehicles are in real time helps with managing everything and responding quickly if something goes wrong.

3. Driver Hire

Drivers are the ones responsible for moving everything from place to place, so hiring good people is as important as anything else.

The obvious includes proper licenses and clean driving records, but there’s more to it that just that essential paperwork, such as finding drivers who show up on time and handle cargo carefully.

These people are genuinely worth their weight in gold.

Training matters quite a bit too, as drivers who understand how to handle different types of cargo are going to be more effective out there on the road.

Some companies also look for people who are comfortable chatting with customers, since drivers are often the main point of contact during deliveries and may need to instruct warehouse managers as to your specific needs.

Such drivers can also apply these 5 Cost-Effective Ways to Boost Customer Retention.

Retention is another part as turnover can be high in these industries, and constantly training new hires is and disruptive.

You can aid that by ensuring a work environment where drivers feel valued and fairly compensated.

Without them, even the shiniest fleet in the world is ground to a halt.

4. Storage & Inventory

Moving goods correctly is only part of this entire plan, because those goods need somewhere to live before and after transport.

Warehouse space needs to be organized and efficient such that makes loading and unloading quick, with high-demand items easy to grab.

Unfortunately (and this happens often), poor organization just leads to delays and misplaced inventory, causing frustration for everyone trying to keep things moving.

A solid inventory management systems help keep track of what’s sitting in stock and what’s already been shipped out.

These systems can be integrated with route planning and customer orders if done right too. Eventually, everyone involved has accurate information about what’s available.

Temperature-controlled storage might be necessary for certain products and it’s important to have that resolved in advance.

Read 17 Tips For Starting a Delivery Company That Stands Out

5. International Partner Outreach

You may want to work abroad with others who can take your cargo at the border, and so vetting potential partners is necessary even if it takes some time.

There needs to be real confidence that they’ll handle goods properly and communicate clearly at all times.

Of course, reliability matters just as much internationally as it does closer to home. Maybe more so since there’s more distance involved in getting things across borders.

Some companies start with smaller test shipments to see how a partnership works before booking them for any larger volumes.

Building such relationships can help you plug any holes if you want to reach out. You might not necessarily structure a brand-new depot in a country you don’t have offices in yet.

You can read about 16 Steps To Building Successful Partnerships.

6. Fleet Managers

At a certain point, having someone in a full-time role for overseeing the entire fleet becomes necessary.

Fleet managers can be a great help and are great at handling vehicle maintenance schedules. They are also good at managing driver performance while dealing with whatever issues pop up.

They’re the ones making sure vehicles are ready to go and drivers have what they need to do their jobs..

Make sure you hire someone good, or even more than one person in this role.

Someone who can prioritize and make quick decisions when things don’t go according to plan. This happens more often than anyone would like. 

This also means having a mind for safety, pushing for productivity without cutting corners that could lead to accidents.

They’re also usually the ones digging into any appropriate data to find areas for improvement. Examples are reducing fuel consumption or maintenance schedules.

With this advice, you’ll be sure to improve your in-house logistics in the best sense.