3 Secrets of Success in Logistics Management
The eCommerce trend has almost affected every industry either positively or negatively. Selling virtually has been a dire need for every business. But, logistics is an industry which will not lose her significance in physical trade. Because, it acts like an intermediary between virtual and physical trade. Therefore, it is one of the evergreen industries having least disruption on account of increasing virtual trade. But, before entering into logistics, it is crucial to understand secrets of success in the logistics industry. The article explains the 3 secrets of logistics.
Small businesses in the industry lack either inventory tracking system or the system is not integrated. As a result, they suffer from increasing storage and transportation cost. The problem can be handled by installing an efficient software into the system.
DHL Case Study
DHL uses the most advanced software to track the inventory and remain in touch with the customers. They have an automated response system in software which keeps updating the customers about the order location. This develops trust and transparency in customers’ sight.
Human Resource Development
The human resource is a key component for any organization. It is often seen that small businesses do not consider human resources as a critical success factor. Consequently, they witness increase in turnover and unskilled staff.
FedEx Case Study
FedEx uses virtual reality to train their employees. Director HR for FedEx said “So this lets us bring immersive learning technology into the classroom, so they can practice before they ever set foot on the dock.” In short, The Logistics management demands an effective training of the employees to develop their skills. The well-trained employees would be able to choose the best possible routes to reach their targets. They would also be adoptive and welcoming to new technology and innovation.
The companies like NOKIA, Blackberry and YAHOO could not compete because they were not flexible. Their management was proud of their traditional products and services. The market was growing in size and the new trends were demanding some innovation. But, the companies were rigid on their ways. Today, we hardly hear their name.
Similarly, flexibility is important in logistic management. The transport industry evolved from railroads to trucks, from trucks to cargo ships, and from ships to airplanes. There is a huge list of failures in the way of transformation. All of them failed due to lack of adaptability and flexibility. In contrast, the giants like DHL, FedEx, and UPS have hundreds of flights operating worldwide. They are listed among fortune 500 list. The secret of their success lies in the philosophy of management; flexibility and adaptability. Moreover, these companies are struggling to implement artificial intelligence and blockchain technology in the coming future.
Logistic management will always be an important department and industry in all circumstances. This is why, it is one of the most profitable businesses worldwide. Because it connects the business world irrespective of the borders. Hence, it is very important for every company entering into logistic management to follow the above top secrets of success if they want to thrive and survive in the industry.
Stream International is a Toronto based customs and freight brokerage. Our team has over 20 years of experience and is able to assist businesses of all sizes with importing, exporting, compliance and logistics management. Contact us today for more information.