The Task

Logistics, in many of today’s companies, is taking on a role of renewed vital importance. Logistics departments can no longer remain the black sheep of the corporate structure. They are now expected to deliver those results which improve the bottom line. Will they? Is there a way to bench mark logistics in your business environment? Of course there is a way. Innovations gleaned in other fields can be translated into excellent models for almost every industry. There are few businesses that are exempt from improvement.

Invention, Innovation, and Intelligence.

Today, transportation patterns are changing rapidly for many companies. Retailers are interchanging between direct store and central distribution delivery patterns. New documentation and pressures are being imposed on suppliers to meet their customers “own” distribution requirements, changes that are sometimes difficult to understand and implement. Product is often shipped using intermodal containers, and the need for internal fleets is challenged by competitive transportation firms. How are you managing these new complexities? Are your people still in control or are they battling a paper trail with only a thread of understanding?

Information systems are greatly improving the logistics subsystem. Today, more information can be coded onto every product. Better controls can now be implemented to meet expiration dates, product turnover, picking, shipping, and error prevention. Today, orders can be processed electronically and shipments tracked continuously until their destination in real time has been reached. No longer should you hear the phrase “We don’t know where your product is?!?”; rather, “It’s no longer here, it’s on its way.” Now you should know how far your product is from your customer at anytime, all the time.

People are asset number one. In order for a firm to obtain well-trained logistics personnel, scarce corporate resources and management must be committed to the training and incorporation of these people into the company’s infrastructure. What is a company supposed to do? Sacrifice money and time to set a logistics department up or look for an alternative?