Businesses involved in logistics management at the global scale can do well by automating warehouse and other processes in the logistics chain, like picking and processing of shipping information. Automation also has the advantage that it leads to generation of electronic data. This electronic data can be used at the level of the enterprise for making better decisions.
Companies can also become more efficient and effective in their logistics management by using the value stream mapping tool. This involves mapping all the processes or steps that create value in the warehouse and rest of the logistics chain. The value stream should depict all the steps in the logistics chain that ultimately take the product to the doorsteps of the customer. This value stream map helps the management and the employees involved in logistics management in understanding the entire logistics process. Areas or steps which are the cause of inefficiencies can be identified. Employees can suggest ways of improving these areas. The company can cut wastage and make its logistics chain lean by using the value stream mapping tool.
Standardization of the work and processes involved in logistics management can result in minimization of errors and variances in the logistics process. A process-oriented approach should be taken towards logistics management. Such a process-oriented approach makes the logistics management more effective. Whenever a fault or error occurs in the logistics chain, the management should focus on the process that is the source of the error.
Implementation of just-in-time (JIT) philosophy in logistics chain processes, like warehouse management, can result in lower costs and more efficiency. JIT philosophy is about eliminating unnecessary inventory, unnecessary information and unnecessary processes and making the whole process more agile so that customers’ demand can be fulfilled as soon as it is raised.
Materials handling system in the warehouse should be chosen on the basis of the type of the product that is being stored in the warehouse. Similarly the transportation equipment should be chosen keeping in mind the nature of the product to be transported, the needs and destination of the customer, the business goals and also the regulatory environment.