When it comes to logistics, every company should be looking to up their game. There’s a good chance you have some inefficient processes you can find in your operation, and improving those will significantly boost your bottom line.
A recent study found that over 40% of small businesses track their inventory manually, or they don’t track it at all. More large companies may track their inventory, but it’s done sporadically or inaccurately in many cases.
When you’re spending upwards of 20% of your budget on maintaining and managing inventory, you need to do everything you can to prevent leaving money on the table. Let’s look at four lessons we can learn by looking at how several of the big dogs do it.
- Be Proactive With Technology
Nobody will ever accuse Amazon of being afraid of technology. They owe a large amount of their success to boldly implementing new technology to manage inventory and streamline logistics.
Amazon continues to be one of the behemoths of commerce in logistics by using robots to do much of the work previously done by humans. The company is continually trying to figure out new ways to integrate robotics into its warehouses. Amazon even has gone to the extent of buying a robotics company in 2012 for $775 million, which is now called Amazon Robotics. Today it has more than 100,000 robots worldwide.
You probably don’t have millions to sink into buying your own robotics company, but you should be monitoring your industry to learn about new advancements in technology that can help your business. Drones are a perfect example of innovative technology being used to check inventory and even ship packages efficiently.
- Sweat the Small Stuff
In 2019, UPS generated over $53 billion in revenue through their domestic package deliveries in the United States and shipped over 750 million packages during the most recent holiday season. Those are big numbers, but UPS can do it efficiently because they obsess over the small details.
For example, they found that a simple step like keeping boxes and packing material close at hand for workers can have a significant financial impact. They believe that reducing steps in the warehouse has a major impact on the bottom line.
Take some time to watch your floor operations and talk with your employees. Do they have to walk 10 feet every time they need to pull a box? You may be able to shave off time by rearranging things, which can add up if you’re dealing with hundreds or thousands of products.
- Keep Tabs on Industry Developments
Being successful with logistics means getting out of your own world. Many factors affect your business that you need to be familiar with and other industries you should keep abreast of. By understanding economic shifts, changes in international law, and the ever-increasing role of technology, you’ll be better prepared to make the big decisions leading to greater profits.
FedEx wouldn’t thrive until a 1977 legislative change that removed restrictions on routes operated by all-cargo airlines. Are there any legislative changes coming that could affect you?
- Invest in Great Software
Many companies struggle with logistics and inventory management because of not having an efficient, streamlined system, or having no system at all. The right inventory management software can help fix that.
Another shipping giant, DHL, wouldn’t be able to operate without great software. Their warehouse management system monitors and controls each of their warehouse processes, communicates with their customers, records all events and activities associated with each package, and more.
The right software will help you manage your suppliers, keep track of shipping, trace packages, manage your warehouse, and just about anything else involved in inventory management.
Korpack offers logistic services that can assist you with logistical challenges you’ve faced before or just help you streamline what you’re doing now. Our dedicated logistics experts utilize the most up-to-date tracking technology, making sure your customer gets your product when they need it – at a price you’ll like.
Contact us today and let’s review your packaging and shipping procedures. We’ll objectively tell you if there’s anything we can do to help you save time and money by having a no-hassle, no-pressure consultation. It’s the Korpack way.
