Despite growing revenue, profitability is growing for only a small amount of logistics service providers. The key differentiator in determining the successes of many companies is efficient logistics management. A Logistics company needs to do more than just adjust a few price levers to boost their profitability or hope that they will reach scales or synergy effects by the way of acquisitions. Simply reducing expenses is sometimes not sufficient for long-term profitability. They need to make better use of the resources and challenge the way things were done in the past.
Effective logistics and supply chain management is a prime factor in the success of any business and it directly influences its final outcome. Poor planning and management of logistics and supply chain could lead to excessive expenses, missed shipping deadlines, and even damaged products.
What is Logistics Management?
According to the definition that is provided by The Council of Supply Chain Management, "logistics management is component of supply chain management that plans, implements and regulates the effective flow and storage of products, logistics services, and associated data to satisfy the demands of clients."
Benefits of Effective Logistics Management for Increasing your profits:
Profitability has always been a challenging task for logistics firms. Despite growing revenues, margins of profit remain very low. The logistics industry has optimized current business models to the lowest price lever in the last few years.
1) Improve your Logistics Strategy and Increase Customer Loyalty
Consumers require better service, and this mandate generates a need for shippers to deliver quickly, precise and high-quality service. Good management strategy aims at continuously optimizing transportation procedures and eliminating disruptions. It thus has a direct impact on the satisfaction of your customers which ultimately affects their loyalty to the brand as well. Improved customer service can give the brand of a company a strong reputation and assist to generate more business. Well-managed logistics services ultimately contribute to the overall favorable experience of your customers and clients.
Read more: https://logiswot.wordpress.com/2019/06/25/how-logistics-management-can-increase-your-profit/
Effective logistics and supply chain management is a prime factor in the success of any business and it directly influences its final outcome. Poor planning and management of logistics and supply chain could lead to excessive expenses, missed shipping deadlines, and even damaged products.
What is Logistics Management?
According to the definition that is provided by The Council of Supply Chain Management, "logistics management is component of supply chain management that plans, implements and regulates the effective flow and storage of products, logistics services, and associated data to satisfy the demands of clients."
Benefits of Effective Logistics Management for Increasing your profits:
Profitability has always been a challenging task for logistics firms. Despite growing revenues, margins of profit remain very low. The logistics industry has optimized current business models to the lowest price lever in the last few years.
1) Improve your Logistics Strategy and Increase Customer Loyalty
Consumers require better service, and this mandate generates a need for shippers to deliver quickly, precise and high-quality service. Good management strategy aims at continuously optimizing transportation procedures and eliminating disruptions. It thus has a direct impact on the satisfaction of your customers which ultimately affects their loyalty to the brand as well. Improved customer service can give the brand of a company a strong reputation and assist to generate more business. Well-managed logistics services ultimately contribute to the overall favorable experience of your customers and clients.
Read more: https://logiswot.wordpress.com/2019/06/25/how-logistics-management-can-increase-your-profit/
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