10 goals of logistics and how to achieve them
Logistics objectives encompass efficient planning, management and control of the storage and shipment of goods. To optimise supply chain processes and maximise results, companies should take into account 10 key aspects.
What are the goals of logistics?
Logistics is far from being a standalone part of a business. Indeed, it’s a comprehensive, value-creating process. A commercial transaction is only as successful as the logistics processes behind it. Therefore, it’s essential to understand the 10 main objectives of logistics set out below. Keeping these key pillars in mind will ensure your company’s effectiveness and competitiveness.
1. Increase competitiveness
The first goal of logistics is to be more competitive. This is done by guaranteeing quick deliveries and providing quality information to the parties engaged in your logistics process. More and more companies are including their logistics capabilities in the value propositions they present to their customers, especially in the retail and fashion sectors.
The rise of e-commerce and same-day deliveries has heightened competition to distribute orders in increasingly shorter time windows and offer online customers the greatest possible convenience. Setting up pick-up points as an alternative to the recipient’s home is an example of this trend.
2. Anticipate needs
Accurate consumer needs forecasting is just as crucial as competitiveness in goods distribution. Sourcing the required product in the right quantities can make or break a business. To efficiently implement supply chain procurement, it’s vital to sync information between your warehouse and points of sale (POSs).
Companies with a distribution centre and different POSs can install digital tools like Store Fulfillment to manage product replenishment automatically. This solution knows how much stock is available at POSs and organises replenishment to maintain sufficient inventory levels. This way, you won’t miss out on business opportunities.
3. Calculate optimal stock levels
When predicting needs, there’s a fine line between understocking and overstocking. In logistics, it’s best to maintain appropriate inventory levels to avoid product obsolescence. Adopting a just-in-time strategy can be beneficial. However, it requires meticulous planning.
In the face of this challenge, being equipped with a warehouse management system (WMS) such as Easy WMS lets you monitor stock status in real time and ensure traceability of product flows.
4. Strengthen relationships with customers and suppliers
One of the main goals of logistics is to earn and maintain the trust of your suppliers and clientele. Achieving agreed results, guaranteeing on-time deliveries, resolving possible incidents and keeping communication channels open can position you above your competitors. Moreover, according to the economist Philip Kotler — known as the father of modern marketing — acquiring a new buyer is more costly than retaining an existing one.
5. Provide comprehensive customer support
Your final product needs to be in optimal condition, of course. But prioritising the overall shopping experience is equally important. This spans the first phone interaction or the initial impression on a website to the seamless receipt of the order. The Capgemini study The last-mile delivery challenge indicates that 55% of customers would switch brands if another offered faster delivery service. Logistics significantly influences online customers’ overall perception. So mismanaging it may lead shoppers to overlook a higher-quality product.
Efficient picking and shorter order fulfilment times help meet user expectations. Ecommerce warehouses, for instance, can streamline their logistics operations with specific Easy WMS ecommerce capabilities.
6. Minimise operational costs
Logistics shouldn’t be seen as a fixed cost your business has to bear, but as an opportunity to enhance processes. Being proactive and meeting delivery deadlines avoids resorting to urgent deliveries. Likewise, order processing errors and shipment management entail additional costs due to the need to return and resend the merchandise.
In optimising supply chain operations, data are a valuable asset. The information you gather will enable you to make more informed decisions easily. With Easy WMS’s supply chain analytics functionality, you can compare statistics and identify inefficiencies and improvement opportunities.
7. Plan effective routes
Allocating resources to choosing the best delivery route has multiple advantages. Among others, it prevents traffic jams and other setbacks, facilitates driver and vehicle location tracking and ensures that goods will arrive on time and in ideal conditions.
Using advanced route management software will help you plan optimal routes, considering factors like distance, traffic, weight and size restrictions and delivery schedules.
8. Ensure process efficiency
Logistics aims to achieve efficiency in every production area. To reach maximum potential, you should avoid task duplication, resource mismanagement, excessive bureaucracy and production gaps.
It’s best to implement corrective actions and leave obsolete strategies behind. You should also adopt automated systems and explore other innovations, e.g., tracking technologies, cloud storage, handheld readers, industrial scanners, smart tags and computer vision.
9. Contribute to social value
Keeping supply chains active is fundamental for the economy to function well. Therefore, logistics is closely tied to society. The better the infrastructure, the smoother the economic growth of a region.
Another situation where logistics adds social value is humanitarian disasters. A robust network makes it possible to send aid and rescue resources to areas affected by natural disasters or wars.
10. Protect the environment
The logistics sector is undergoing a transformation process to make its activities more environmentally friendly. Sustainable logistics (aka green logistics) encompasses a set of practices designed to limit the environmental impact of operations such as transport and warehousing while minimising time and costs.
An example is the Euro 7 regulation. Set to enter into force for cars and vans in July 2027, it will require these vehicles to further reduce their emissions.
KPIs to achieve objectives
To reach your logistics objectives, you’ll need to have a management plan in place. But first, it’s best to establish a series of key performance indicators (KPIs). These can be linked to production, storage and inventory, procurement, order picking and shipping, transport, deliveries and customer service.
If you’re searching for the ideal solution to centralise all data relating to these areas, you’re in the right place. At Mecalux, we develop software solutions that boost efficiency in all types of warehouses and facilities, regardless of sector. Whether you’re looking for programs or physical warehousing solutions for your projects, be sure to get in touch.