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Creating a Great Logistics Strategy

 No matter what business you’re in, or what type of product or service you supply to your customers, it’s absolutely crucial to have an effective logistics strategy. Why? Because logistics affect your customer’s experience, and a negative customer experience will harm your company’s brand, no matter how great your product or service. Poor logistics will render all other aspects of your business obsolete, because it will drive customers away.

Know your customers

Nothing is a substitute for really getting to know your customers. If you don’t fully understand the needs and wants of your customer base, then your logistics strategy is flying blind.

Getting to know your customers is more than just conducting research. You have to listen to your customers. One great way to do this is through social media, like Twitter and Facebook. Ask questions and seek out answers—you may discover something you were doing wrong, or find a better way to reach out to your customers.

Tailor your supply chain for specific customers

Once you’ve put work into getting to know your customers, you must tailor your logistics strategy to address their specific needs. This could mean adjusting any part of the supply chain, from manufacturing all the way to retail.

The overall goal of supply chain management is to make a better experience for your customers, and you do that by tailoring the whole process to fit their needs.

Always match demand to your supply

If your supply of products is out of touch with the demand of your customers, then you’re going to have unmoved inventory, higher transportation costs, and more waste. However, if you gauge the demand for your product, and adjust your supply accordingly, you’ll save on much more than transportation and reduced waste. You can pass those savings on to your customers, and provide better customer service.

A logistics strategy should reflect the overall goals of your business

It’s important to understand the overall goals of your business, and then make that the focus of your logistics strategy.

Maybe your goal is to provide lower prices than your competitors. Then your logistics strategy should focus on reducing transportation costs, manufacturing costs, etc.

If you’ve decided that it’s your company’s goal to provide the speediest service, then your logistics strategy should focus on moving products as fast as possible.

Take advantage of third party logistics

Not all companies have the resources or expertise to take care of logistics on their own. In many cases, it can be beneficial to utilize a third party logistics company to handle things like warehousing or transportation.

In the apparel world, the Apparel Group has the expertise and infrastructure to handle every step of the supply chain. Contact us today to find out how we can help you develop an effective logistics strategy.

 

Posted: 7/18/2014 10:48:04 AM by Global Administrator | with 0 comments
Filed under: goals, logistics, strategy, customers


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