In the logistics sector, an audit of operational costs and practices, (often referred to as a health check) would seem a prudent course of action during times of economic uncertainty. In addition, where long term logistics partnerships have been in place, an independent assessment could prove valuable. Areas to review could include:
- Fleet utilisation (volume delivered & hours utilised)
- Empty mileage
- Fleet mix and buying policy
- Own fleet vs 3PL vs sub-contractor vs parcel/pallet network split
- Load planning rationale & logic
- Employed vs agency worker numbers
- MHE usage and agreements
- Storage opportunities with third parties
- Stock holding policies, particularly regarding slow moving and obsolete stock
- Supply chain risks
Davies & Robson have got extensive experience with manufacturers, distributors, retailers, and third-party logistics providers in undertaking operational health-checks for businesses. For an informal discussion to see how we can help to review your operational costs, processes, and contractual relationships in the form of a logistics health check, call Davies & Robson.
