Logistics strategy

The importance of logistics strategy

Defining a logistics strategy

From the supply of raw materials to the transformation of finished products, via the storage, handling and delivery of goods, logistics covers a wide range of activities and involves numerous service providers. A logistics strategy consists in optimizing all facets of the process, to ensure perfect management of physical, informational and financial flows.
In pragmatic terms, the logistics function covers all activities designed to ensure the proper coordination of supply and demand. With the rise of e-commerce and new consumer demands, logistics flows are set to play a growing role in the years to come.

An audit of every stage in the supply chain

For retailers of all sizes, optimizing flows is a key strategic factor. A supply chain audit is therefore of major interest, as it will enable the organization to better understand any supply chain failures, and to implement appropriate solutions The audit will give logistics and transport players the opportunity to identify areas for productivity improvement, and even to restructure certain links in the chain.

Clear objectives

A clear understanding of the dysfunctions in your supply chain gives your company a chance to respond more effectively to the challenges of contemporary commerce. Establishing a well thought-out strategy from upstream to downstream mechanically increases supply chain productivity The implementation of relevant KPIs will optimize financial and physical flows throughout the chain. For example, calculating the inventory turnover rate is essential for companies wishing to limit the costs associated with overstocking goods, or to avoid losing potential customers through frequent stock-outs. By optimizing your supply chain, you will naturally improve your service rate.

Tools for an effective logistics strategy

What are ERPs for?

Sometimes referred to as Integrated Management Software (ERP), Enterprise Resource Planning (ERP) is professional software designed to optimize the management of a company's activities, improve performance and coordinate the actions of all those involved. ERP is capable of integrating all company-specific functions into a single database, from purchasing and sales to human resources, customer information flows and accounting As such, ERP software is considered one of the most relevant tools for companies wishing to manage and monitor all company resources in real time.

Why invest in a WMS?

The WMS (Warehouse Management System) is also a professional information system. Unlike ERP, it focuses on optimizing warehouse inventory management. With real-time stock levels, improved order-picking processes and intelligent allocation of staff tasks, the WMS is a particularly effective logistics management solution.
A well-thought-out logistics strategy requires the simultaneous use of an ERP and a WMS.

Business Intelligence or decision-support solutions

Business Intelligence (BI) can be defined as the set of tools facilitating the collection, visualization and analysis of relevant information to optimize a company's activities. ERP and WMS systems are naturally part of this logic. Depending on a company's needs and specificities, the data collected by BI tools may, for example, relate to sales, stock turnover, pick-ups and deliveries, customer satisfaction or loading times.
The main advantages of BI solutions lie in the clarity of information and interactivity. Data is presented in the form of dynamic, easy-to-read dashboards, enabling managers to make more informed decisions. In an ultra-competitive market such as the logistics sector, software that facilitates decision-making is of course a substantial advantage.

Since the supply chain is a key element in a company's growth, and plays an active role in customer satisfaction, a strategy is essential.