How to increase logistics productivity: the 4 key aspects to consider to increase logistics efficiency

Find out how to improve logistics productivity in 4 simple steps

La productivity It is an essential indicator for analyzing the state and quality of logistics management of your company. Here are some of the recommendations that will help you increase logistic productivity of your company

Use of metrics and KPIs

To evaluate logistic productivity and process performance, the use of KPIs is essential (Key Performance Indicator). These indicators will help you measure and quantify your company's performance and compliance with established objectives. According to the article Logistics KPI: discover how to increase the productivity of your company from the technology consultancy Enzyme Advising Group, the incorporation of these parameters is an essential component in the success of any company.

It is recommended that when defining the logistics KPIs, they are developed based on the S.M.A.R.T. (Smart, Mmeasurable, Achivable, Realistic and Time-Bound) model:

• Specific: in line with your company's mission, vision and strategy.
• Measurable: Quantifying results will be key to strategy planning and subsequent decision-making.
• Achievable: define objectives as long as they are acceptable and real
• Realistic: objectives should be defined according to the capabilities and particularities of the strategy
• Time-limited: objectives with a limited period of time.

Within the KPIs, it must be taken into account which ones can be useful within each of the phases of the logistics process. This will make it easier for you to extract performance data from each department. Here are some of the most important in the different phases of the logistics process:

• Purchase and inventory: it is essential to measure the service offered by our suppliers and carry out an inventory in order to have a good organization (know the content, avoid possible errors and even reduce costs)
• Distribution: Quantifying the orders to be placed and evaluating the productivity of your employees will increase the efficiency of your warehouse
• Transportation: automating tasks related to transportation, thanks to the use of software specialized in route planning and optimization, will make the last mile an efficient and optimal process for your customers
• Order and delivery management: It is necessary to know times and quantities when carrying out a delivery service, since it will depend on increasing management and operational performance

Increase customer satisfaction

Prioritizing a stable relationship focused on customer satisfaction is the first step and an essential step to achieve success and thus increase logistics productivity.

To establish a good relationship with your customers, you must offer optimal communication throughout the process: it offers direct access, real-time monitoring of information, includes alerts, etc. It is also essential to guarantee adequate technical support: the resolution of incidents or questions that may arise quickly and effectively is essential for the satisfaction of your users. All of this will make them have all the information they may require and will help them build a much stronger relationship with your company, which will also have an impact on logistics productivity.

Optimizing resources: transport and logistics productivity

The optimization of resources when it comes to transportation is essential for the benefit and efficiency of your company, since it will help to control the traceability, trajectory and tracking of shipments. In addition, planning delivery routes efficiently and optimally will result in significant economic and time savings. Therefore, the use of specialized route planning software such as Routal Planner will be a key element in increasing the logistics productivity of your company.

Design of planning systems, logistics scenarios and efficient warehouses

It is essential to have a good warehouse design, since it will have a direct impact on the supply chain and its effectiveness because this will help to manage one's own supplies properly and to greater logistic productivity.

The design or redesign of the warehouse should take into account key aspects, such as the prior analysis of the warehouse's space needs and associated areas, together with a previous study also of the expected inflow and outflow.

Do you want to know more aspects of the logistics market? We recommend that you read the article Digital transformation in the logistics sector: the 5 keys to achieving digital success to learn about the latest trends in the sector.

If you want to increase the logistics productivity of your business, join Planner and reinforce the scalability of your company.