When a company aims to increase its business volume in this unstable V.U.C.A society, it's not enough to focus unilaterally on some traditional departments (procurement and/or sales). It is necessary to ensure strategic alignment between all areas, including support and primary activities, to become competitive in the market.
Currently, logistics has been growing, offering various logistic models that serve industries such as retail, FMCG, and the increasing trend of e-commerce. Logistics is undoubtedly positioning itself as a strategic partner that creates added value for stakeholders and customers.
To build an efficient logistic operation, it must be integrated with other business areas, such as procurement, supply, production, and sales, thus structuring an Integrated Supply Chain Planning to identify the Strategic, Tactical, and Operational Plan, which is fundamental for obtaining cost benefits and service quality in operations.
Ensuring the inclusion of the logistics department in the strategy creates various opportunities to boost the growth of gross profit margin, productivity, and service quality. It also allows for cost reduction and serves as a differentiator in the sales offering to increasingly demanding customers who now analyze not just the price but the value of the entire service and efficiency we can offer.
Here are some key indicators:
- Logistic Models: from Cross-docking, Milk Run, and Fulfillment.
- Core Activities: International Logistics – Negotiation with Partners and “State of the Art” control, assertiveness in Incoterms, reducing transit times.
- Logistic Information Systems: Efficient technology such as ERPs, WMS, TMS, EDI, Robotics, and Artificial Intelligence.
- Quality Management and Continuous Improvement Processes: Lean; Kaizen – optimizing processes, eliminating waste.
- Logistic KPIs: Transport Cost vs. Sales; OTIF; Lead time; Stock Rotation.
- Supplier Evaluation: Investing in partnerships and boosting business volume.
- Multidisciplinary Teams: Focus on integrated operation planning, strict PDCA.
All these tools enhance process optimization and agility, providing visible, traceable, real-time data flows that can measure operation performance and give visibility.
However, it is extremely important to invest in Human Resources in the logistics sector, training, and retaining talent to ensure continued operational success.
Seeing logistics as a Strategic Ally is betting on Business Growth and Expansion!
Maria Pereira | Corporate Logistics Director