Driving profitability in logistics has always been a challenge. More than often, companies are overwhelmed with the amount of work to be done, making it hard to adjust and make changes to increase profitability. Not to mention, having the time to plan for the future.
In order to change this, we need to think different. Companies cannot continue to do business the same way and then expect a different result. There are concrete measures one can take to drive profitability in logistics and we have uncovered 5 of them.
Logistics is a low margin industry with tough competition. This report provides you an overview of 5 key factors to driving profitability in logistics such as:
Increasing fill rates
Supply chain visibility
Better utilisation of resources
Logistics is an unsustainable industry in the way that an enormous amount if air is being transported in trucks, containers and airplanes across the world. Therefore, it should be more focus on optimizing the utilisation of freight capacity regardless of transportation-mode.
In addition to increase the fill rates, collaboration between partners is key. Supply chain collaboration is a critical factor to driving profitability in the future. According to McKinsey, companies that collaborate effectively across the supply chain have enjoyed dramatic reductions in inventories and costs, together with improvements in speed, service levels, and customer satisfaction. Also, better control and supply chain visibility can have a game-changing impact on your profits and is extremely important in B2B.
In order to maximize the value of the actions mentioned above, it is necessary to make the switch to digital logistics. This offers a wide range of benefits and opportunities that can have a positive impact on your business.