We have excellent expertise and excellent references in the logistics industry, transport companies and international supply chains. The special challenges in a market environment with maximum cost pressure can only be met on a proportionate basis by automating and streamlining. Managed and low inventories, process standardization, status of delivery and meeting delivery deadlines are a demanding task-mix for future-oriented logistics companies.
From a carrier to a logistics service provider
Conventional carriers (shipments) and warehouse locations (storage) have increasingly developed into logistics service providers, sometimes as a consequence of the natural business in-house development, sometimes specifically demanded by the customers of the “conventional” carrier. Logistics service providers increasingly take on further logistical process steps of their customers and also assume responsibility for value-creating processes (value-added services, VAS) of the customer (e.g. pre-assembly, picking and packing, kit building, etc.). The external logistics are increasingly interlinked with the intracompany logistics processes and assembly processes. This results in major new and demanding challenges:
The challenge for the personnel
The personnel of the logistics service providers are confronted with new tasks; these are considerably more sophisticated and clearly extend beyond the pure movement of goods and must be carried out in time, to cost and in the prescribed quality. The services sold to the customer are calculated on the basis of process times and quantities ,and it is now down to the individual employee whether the calculated time is complied with in the individual process. This has led to considerable industrialization in the logistic processes.
The challenge for the management
As a result of the increased acceptance of responsibility, i.e. taking on and assuming responsibility for complete sections of the logistics and supply chain, the requirements for the management and the management of the logistics company are also increasing. The planning, and steering of the orders, the efficient integration of suppliers, producers, distributors and possibly retailers must be managed and guaranteed as a whole. As a result of the obligations to deliver, the goods must be provided in the correct quantities, at the correct locations, at the right time in complete logistics chains.
The calculation and measurement of the correct logistics performance indicators for the company, Key Performance Indicators (KPI) in the supply chain, are a prerequisite for successful supply chain management and a performance benchmark for the profitability of the company. This goes hand in hand with the development and management of the in-house personnel in this new environment. Customers also increasingly demand visible continuous improvement processes (Kaizen/CIP), annually agreed savings and price reductions from the logistics service providers. This has to be organized and guaranteed by the management.
The challenge for material and inventory optimization
An in-house procedure for inventory optimization is commercially very relevant as a result of the transfer of stocks from the customers, the agreed inventory management and inventory reporting and, in some cases, the payment of the inventory costs (Vendor Managed Inventories, VMI). Sole responsibility for quality is also assumed after receipt of the transferred goods, therefore quality assurance and the avoidance of quality costs are becoming an increasingly important function of logistics service providers. In particular, processes for returns (returns, returns processing) offer the best options for increasing efficiency.
The challenge for the cost-effectiveness of investments
In some cases, considerable new storage capacities must be provided by structural investments as a result of the transfer of stocks and packaging from the customers. At the end of the day, these investments must be managed to achieve a positive result. KPI-based management, industrialization of the logistics processes and a continuous increase in efficiency are also prerequisites here. The competitors are namely doing the same.
We can assist you professionally with strategic issues:
- Restructuring of organizations as a result of changed general conditions or long-standing structures
Strategy consulting and effective management
- Increase in the share of value added in the logistics supply chain (value-added services) as part of the changing customer requirements
- Effective, value-driver-oriented management processes and logistics performance measurement systems
Increasing efficiency as a program
- Implementation of simple and efficient processes in the following areas: receiving, planning, production, picking, packing, goods issue
We can assist you professionally with operational issues:
- Analysis of value-added services (VAS), efficiency increase of VAS processes, industrialization of VAS processes, recalculation of VAS target times and target costs compared with actual times / actual costs
- Assessment of supply chain, of the lack of inventory consolidation of several storage locations (double inventory), of the inefficient distribution and logistics processes at international locations
- Effective and vibrant CIP processes and increase efficiency:
- Shortening of the order picking times
- Increase in employee productivity
- Improved standards for the VAS
- Improvement in use of floor space, floor space productivity
- Implementation of sustainable CIP processes
- Improvement of tidiness, cleanliness and systematics in Logistics (5S)