Streamlining is a process that involves the elimination, fine-tuning, and improvement of processes to promote productivity. Logistic companies are among the many businesses that thrive on efficiency and high-performance thanks to streamlined processes and systems.
If you’re a company that’s part of the global logistics network, you ought to use your company of different streamlining techniques to cut operational costs, faster shipping timelines, adapt to industry shifts, and the like. Check out the following reliable and future-proof tactics that aim to better streamline your firm’s global logistics capabilities:
1. Work With Real-Time Data
Your logistics company needs to operate on facts. Accurate data helps correct supply chain issues before compromising the whole chain.
To promote data-driven methodologies and reduce operation expenses, most logistic companies outsource transportation functions to other companies. You can achieve this in third-party logistics (3PL) or fourth-party logistics (4PL).
3PL includes outsourcing transportation functions to a separate entity. But what is 4PL? It’s the act of outsourcing both transportation and management functions to another business. With the two, international companies like yours can tap into up-to-date data and use it to make business decisions.
Say you have a company that manufactures and sells home décor products. Your manufacturing plant is located thousands of miles away from your products’ intended market. Moving goods from Point A to Point B can be very daunting. Yet working with crucial pieces of information like consumer forecasting, real-time inventory, shipping timelines, and many more, you’ll be able to meet your business’ logistic needs as efficiently and quickly as possible.
2. Leverage Automated Compliance
Global logistics includes several requirements. There may be compulsory regulations depending on different state laws and national jurisdictions. It’s essential to comply with these rules to ensure smooth transborder transport.
First, you need to be conversant with all the policies involved in the logistics business. It’d be best to keep up with new rules and regulations as they get introduced to the industry. Otherwise, you risk having your deliveries delayed or your license revoked.
Getting the compliance certificates can get overwhelming when done manually. For instance, it’d take you hours to sift through compliance reports. You must also evaluate the list of agents or partners to ensure you engage in lawful collaborations. It’d be much easier to adopt automated compliance.
One advantage of automated compliance is that you don’t miss out on any crucial step. It also speeds up the process, and you spend fewer hours working through the compliance protocols.
3. Invest In Technology
Technology in logistics is a lifeline for many companies. The latest technological solutions are an ideal way to boost efficiency and streamline operations.
Technology makes it easier to pack, monitor and track goods in transit. Additionally, you can use it to track and monitor your transport vehicles. This ensures you keep tabs on your shipments in case of any emergencies.
For instance, in a robbery, you can track the vehicle and create a trail that could lead you to the criminals that’ve illegally seized your goods. As the world of technology evolves, several emerging trends could be helpful in logistics. Some of them include:
- Robot Packaging
Packaging is one of the ideal practices in logistics. It ensures the safety of the parcel. It also can be an excellent way to advertise your business. You can use robots to reduce time spent packaging and to achieve uniformity in your packages.
- Big Data
Big data involves collecting relevant data that you can use to predict or forecast your demand curves and trends that can help you grow your business potential. Powerful computers made possible by the latest technologies can run different analyses to produce accurate reports concerning logistical data.
- Logistics Machinery Automation
If you’re operating with bulky and heavy parcels, lifting them could be hazardous for your team members. Automation technology provides some options, such as cranes and conveyor belts, to make heavy lifting seamless.
Evaluate technological trends that could be excellent for your company.
4. Upgrade Documentation And Reporting Processes
The nature of business in global logistics requires documentation and reporting. You’re setting yourself up for failure if you don’t keep precise records. It’d be an excellent call to ditch the paper documents and go for electronic documentation because it’s easier to transfer and share them.
For instance, you need to record order dispatches and quantity. You can share such details with your dispatch officers electronically. Plus, it’s beneficial to have accurate dates on dispatch dates. Hence, it’d be best to use electronic documentation in high-traffic companies.
There are several documents required when operating in global logistics. They include:
- Bill Of Lading: This document contains the contract details. And it details the goods transported, their nature, and their claims.
- Insurance Certificate: It’s always a good idea to insure your shipment. The insurance compensates if the other party can’t pay for their package or in case of an accident, theft, or damage to your products. An insurance certificate is proof that your freight has the necessary insurance coverage.
- Freight Bill: It’s an invoice from the carrier to the shipper containing a breakdown of freight charges.
- Proforma Invoice: It’s a preliminary bill containing trade contents such as price and quantity.
- Packing List: A shipping document containing items’ details, such as dimensions, safety measures, weight, and packaging type.
- Certificate Of Inspection: A certificate from the seller to the buyer that guarantees the goods meet standard qualities.
In most cases, several documents are compulsory, especially when goods are entering certain points of entry of countries and/or states. Thus, it’s essential to have all your documents available for inspection and other purposes.
5. Increase Collaboration
Every logistics transaction involves several systems. Cooperation among various units ensures seamless interactions. This includes excellent communication strategies such as setting up multi-modal forms of exchanges between involved parties, minimal delays in responses, and others. For instance, there should be a good flow of communication among customers, delivery teams, suppliers, and other logistic partners.
Conclusion
Global logistics is a very complicated part of the international economy. It can be very daunting to take part in multinational shipping, yet it can be very rewarding. To succeed in doing business in global logistics, you need to streamline your company’s systems, processes, and many more.
Luckily, the post above has listed different points that you can utilize to streamline major operations. Keep them in mind at all times.
