Achieving advanced logistic analytics is a breakthrough in the supply chain to map your problems and solve them. This is the best way to optimize your processes and make your logistics operation cheaper.
A large part of the productivity issues and the drop in efficiency of the logistics process is linked to bottlenecks that hinder the execution of a task. For this reason, it is essential to find solutions that help minimize or eliminate errors in logistics processes. This is where advanced logistics analytics surges to get an overview of the entire process; reduce costs, improve service quality, and increase customer satisfaction.
Process mapping and advanced logistic analytics aren’t complex and can provide powerful benefits. Unlike other operational improvement methodologies, mapping does not require major changes in the work routine for the results to appear.
Therefore, in this article, we will discuss the main points of advanced logistic analytics: concept, benefits, and importance for companies. Enjoy your reading!
What are logistic processes?
Logistical processes are all the actions performed within a company to control and better plan the logistics of a product. It ranges from the negotiation with the supplier to the delivery of the product to the end customer and takes into account all the flow of materials and information included in the process. It also includes planning, execution, and control that guarantees the integrity and delivery of the product to its customer. The goal is to optimize a company’s daily operation to the maximum capacity.
The logistics processes encompass the most diverse aspects of production and should emphasize the pillars of time, cost, and quality.
Some steps of the logistics processes are; production planning, materials, and production management, storage and stock management, transportation management, order processing, and customer service.
What are the benefits of advanced logistic analytics?
Advanced logistic analytics is a very valuable exercise for any company to perform, regardless of the purchasing power or size of the organization (small, medium, large).
Creating and maintaining current process flow diagrams represents clear investment savings. In addition, there are other benefits that can be gained from this strategy, for example:
- Identification of process waste and where it comes from;
- Improving the overall understanding of processes across the organization;
- Identification of opportunities for improvement;
- Improved information and communication flow between those involved in the processes;
- Help in the dimensioning of necessary resources for an efficient and effective administration of the logistic flow.
When to use advanced logistic analytics?
Given the improvement advantages of this methodology, there is really no bad time to map logistics processes. However, there are some situations where it is especially desirable that activities be documented in a visual format. Here are some examples of such a scenario:
In an Internal Benchmarking
If you are comparing the performance of a large logistics network, advanced logistic analytics will make it easier to identify how and why some business units perform better than others.
By cross-referencing the results of metrics with process maps for each business unit, department, or function, you will be able to see what is happening more clearly and effectively.
When it comes to solving problems
It makes sense to create a process mapping prior to any troubleshooting or improvement activity. Of course, you don’t need to map all business activities for this purpose; only the target processes and perhaps those that need adjustments.
In a business solution implementation
When implementing a new IT solution in your logistics operation, advanced logistic analytics will help your IT staff (together with external consultants and solution providers) assess the suitability of different products for your company. The chosen solution will be created or configured to meet your needs in the most assertive way.
What is the importance of advanced logistic analytics?
As explained, among other things, advanced logistic analytics is a great way to learn about your business, as well as to obtain crucial knowledge to solve different types of problems.
During the application of this methodology, you can understand how and why things work and how to achieve your goals. It is also an excellent opportunity to identify possible bottlenecks and diverging points, which can become the basis for improvement initiatives.
The goal is therefore to first get an overview of the complexity and then develop efficient logistics processes that meet the requirements demanded. In addition, mapping enables the manager to find the simplest solutions to integrate employees into the system and involve them in the planning processes.
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