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3 Places to Improve Your Business's Efficiency

3 Places to Improve Your Business's Efficiency | Go Dependable

 

Lean logistics are about cutting costs and maximizing efficiency by trimming any unneeded excess. A comprehensive logistics plan will look at every aspect of your company's supply chain management to locate and strengthen the weakest links. To give you a head-start, here are some typical hot spots in many businesses that can be refined.

Shipping

More efficient shipping solutions are not just about improving speed of delivery but also cost. If you maintain your own transportation fleet, invest in several sizes of vehicles to accommodate different loads, to lower shipping costs by not wasting fuel on half-empty trucks. If you contract out your transportation, look into "less than truckload" shipping to economically handle mid-sized amounts of freight.

Storage

Mismanaged warehouses and unnecessary storage are common avoidable costs for many businesses. A major principle of lean logistics is to store as little material and product as possible; ideally, all stock should be moving at all times, with no extra overhead required. In practice, the need for buffers to account for unexpected market surges or material shortages means that some storage is required. To increase efficiency, automate your warehouses, as well as invest in your workers. Continuing education in new technology and methods empowers your staff not only to work as effectively as possible, but to develop improved processes and eliminated is organization.

At the Office

Just as automation can improve warehouse efficiency, so can technology improve the business office. While a small start-up may be able to get by with spreadsheets and basic databases, upgrading to dedicated accounting and inventory software will simplify cross-company communications, and give you better-organized data to use to formulate production and marketing plans.

While some of these suggestions may not apply to all companies, the principles of efficiency behind them are sound practices for any enterprise.A lean logistics expert will be able to advise you in more specifics for enhancing your particular business, in these and other areas.

 

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