Why is it worth investing in logistics consulting? About consulting and strategy
Nowadays, every business activity focuses on the customer and subordinates to his expectations. At the same time, it must take into account costs and time, and warehouse processes should be designed with particular regard to these needs of the client. This applies to both the planning, design and operation of warehouses that are part of a large enterprise, working in close connection with production and commercial departments, as well as for warehouse space rented to external customers by logistics centers for profit. For example, good logistics consulting is useful to increase the comfort of work.
How does logistic consulting improve cooperation within the organization?
The condition in which enterprises are located requires coordination of activities between departments implementing strategies based on the company’s core business and logistics activities through which this strategy is implemented. Establishing warehouse work schedules, the necessary number of devices and employees performing warehouse processes, annual operating costs? These and other dilemmas of modern logistics will be solved by an external logistics advisor – the Logistics Consulting Department of the BBA Transport System.
What is worth knowing about order picking? Why is it important in logistics planning?
In both cases, order picking processes (i.e. picking various types of assortment on one pallet) play a key role. This is because these processes require a lot of work. Typical warehouse works, such as receiving goods, checking, identifying, entering or moving out of a storage area are not that complicated.
The importance of the order picking process based on the design work of our Logistics Consulting department for the high bay warehouse was clearly noticeable. How?
- The order picking cycle time is almost four times longer than the time the goods were placed in the warehouse (entering goods, not counting the order picking is the most time-consuming process);
- The consumption of order picking (due to the work of forklifts and operators) is definitely greater than that of other warehouse processes;
- The annual picking costs constitute over 20% of the annual operational costs of warehouse work.
Based on the design work of the Logistics Advisory Department, it is clearly visible how important the order picking process plays in the warehouse process. Of course, the importance of this process depends mainly on the structure of shipments. From the degree of order picking and the degree of filling the completed pallet. It also depends on the appropriate distribution of functional areas in the warehouse and the organization of work (work schedule).
However, this does not change the fact that the order picking process is one of the most important processes during storage. It gains even more importance in warehouse processes implemented in distribution warehouses servicing large shopping centers and sectors of the economy characterized by frequent and diversified supplies in terms of assortment, such as the automotive or e-commerce sectors.
Why is logistics consulting so important in planning a logistics strategy?
Logistics, as we have repeatedly emphasized in dealing with our clients, is a key factor in the success of an organization. This claim applies in every industry, especially where the management of goods movement plays a big role: in import and export. According to Stanisław Krawczyk, logistics is:
Logistics includes planning, coordination and control of the course in terms of both time and space, real processes in which the organization is a participant, in order to effectively achieve the goals of the organization.
According to this and similar interpretations of other logistics specialists, logistics allows the organization to operate efficiently. The logistics strategy allows, in a planned and controlled way, to introduce logistic solutions to the organization that improve the functioning of systems and process efficiency. The formulation and implementation of the strategy facilitates uniform and controlled development of the enterprise.
The strategy consists of:
- making a decision about storage
- There are several ways to store goods. Most often this is done by renting storage space in a specialized warehouse complex or warehouse. You can also rent the entire warehouse. Organizations that can afford large expenses often maintain their own warehouses – both transhipment and storage. If the organization’s budget does not allow such an expense, it is popular to establish cooperation with the entity responsible for storage for the organization.
- choice of transport service
- As in the case of warehouses, transport service can have a different nature. For large organizations, it is popular to use your own vehicle fleet. Rental of the fleet and cooperation with companies offering transport solutions as subcontractors is also common. The choice of option means a decision between costs or independence.
- choice of distribution network
- Again, an organization may have its own distribution network, but it does not have to. The distribution often uses the services of intermediary companies that have the infrastructure and tools necessary to carry out deliveries. Large organizations can organize a distribution network on their own, but this involves the use of resources and the need for maintenance.
- other components
- The logistics strategy also includes such factors as choosing the supplier of materials / goods / services or planning the sales structure in the company.
Organizations often face problems in formulating strategies. Logistics consulting allows you to identify areas that need improvement, and therefore special consideration in the planned strategy. The independent entity responsible for consulting has more possibilities to assess the fitness and significance of its individual elements. An external logistics consultant is able to propose solutions unattainable for the entity both from the point of own planning and the tools allowing to execute the plan and implement changes.
We find dedicated logistics solutions for the organization
If you are interested in such aspects of the work of your warehouse as: dimensioning of the warehouse process in terms of performance, optimization of transport and reloading cycle times, setting schedules for warehouse works, determining the necessary number of devices and employees implementing warehouse processes, annual operating costs, technical and operational labor meters warehouse, please contact our specialists and consultants.
BBA Transport System, as a long-time participant in the logistics market, helps its contractors in organizing and managing logistics. As an experienced entity, we implement projects such as:
- Logistic audit
- Designing logistics systems
- Evaluation of the effectiveness of logistics solutions
- Advice on the selection of logistics subcontractors
Specialists with many years of experience carry out all design and consultation work. Their competences are confirmed by certificates of such certification bodies as, for example: APICS, ELA, BSI, ITS, PIFFA.
Contact: Mariusz Żakiewicz
+48 22 463 47 40 or +48 512 081 920
Artykuł Why is it worth investing in logistics consulting? About consulting and strategy pochodzi z serwisu BBA Transport System.