When issues in the logistics world start to make headline news on a nightly basis, then you know there is a real problem in the industry. Shortages with LGV drivers and warehouse operatives are now being reported with depressing regularity, and some businesses feel that they have no choice but to accept eye-watering and inflation-busting salary increases just to maintain the status-quo.
Whilst in some cases this may be unavoidable, businesses must take the opportunity to review processes and efficiencies in their existing operations to mitigate these increases. For example, if vehicles are currently delivering half-empty loads, will they continue to do so in the future with just a higher paid driver to show for it?
Common areas of inefficiency within the supply chain include:
- Sub-optimal load planning (drive time or vehicle utilisation)
- Warehouse congestion
- Delivery failures and returns through lack of customer communication
- Mismatch between shift patterns and business needs
- Stock location issues within the warehouse
- Master data issues within the WMS system
- Poor stock control discipline
Now, more than ever, businesses should review current operational practices and make plans to eradicate inefficiencies within the supply chain.
Davies & Robson can assist in undertaking logistics “health checks”, and in designing improvement programmes that will help to lessen the impact of some of the issues currently being experienced within the industry. Call us on 013270 349090