Want to Level-Up Your Logistics Results? Address These Four Issues

Remember when the general population didn’t know what the word “logistics” meant? And supply chains operated invisibly in the background, never really given much thought or attention? The COVID-19 pandemic forever changed that. 

The past few years have given the global logistics industry a well-deserved chance to shine — as shareholders, executives and consumers finally recognized the critical role played by supply chains. As a result, we’ve seen significant improvements in logistics performance, as companies have increased their supply chain investments, embraced new business models, and adopted innovative processes and technologies. 

The global pandemic is firmly in the rearview mirror, but today logistics teams face new challenges — including rising operations costs, labor shortages, demand volatility, and increasing disruptions on both the demand and supply sides. While supply chains are more optimized than ever, most companies are still looking to “level up” their logistics capabilities in light of these ongoing challenges. 

At Redwood, we’re frequently asked, “What more should we be doing? Where are the best opportunities for a quick return?” As a Modern 4PL with a full range of solutions and services, Redwood is uniquely qualified to answer these questions objectively. Since we cover the entire supply chain, we have no vested interest in any one function, technology solution, or service area. 

Based on our work with hundreds of customers, and our day-to-day observations, here are four common issues that keep logistics teams from achieving their best possible results. If you’re looking to level up your own supply chain performance, look first at these four typical problem areas. 

Warehouse Inefficiencies  

The warehouse is a huge, and growing, cost center. It also plays a central role in driving customer satisfaction. That makes it a natural focus for any improvement initiative. From misplaced products to incomplete orders, warehouse errors are expensive — and, over time, they can damage crucial customer relationships. If you’re looking for a way to improve accuracy, speed and efficiency in the distribution center, look no further than an advanced warehouse management system, or WMS.  

If it’s been a while since you’ve upgraded your warehouse technology, you’ll be amazed at the results produced by a modern WMS. Enabled by artificial intelligence (AI) and analytics, a WMS can ensure you make the most of all your assets. It can automate processes, prioritize orders and tasks, and monitor work in real time across the DC. It can integrate with warehouse robotics, as well as mobile apps and voice controls that guide picking, packing, and shipping. The cost and service payoffs can be enormous.  

As warehouse operations costs continue to rise, many logistics teams are also choosing to outsource their warehousing and distribution activities to a Modern 4PL with specialized expertise, while they focus on their core business. This can drive down costs, capital investments and monthly expenses like rent significantly. 

Delivery Missteps 

Today’s business landscape is characterized by unforeseen disruptions. From extreme weather to driver shortages and geopolitical events, these surprises can completely throw off even the most carefully crafted delivery plans. The cost of expedited shipments or duplicate orders is only the beginning. In the current hyper-competitive environment, customers can easily abandon your business even after just one mistake.  

You can’t eliminate disruptions, but you can level up both your cost and service results by being prepared for them in advance. Smart, forward-looking supply chain teams always have alternate sources of product supply, as well as multiple tiers of carriers. Your contingency plans might also include regional micro-fulfillment centers, last-mile delivery strategies and cross-docking. Advanced technology solutions enabled by AI, can help you identify disruptions at the earliest opportunity, as well as automate a resolution. Track and trace capabilities provide peace of mind at every step of the delivery process. Multiple advanced technology options are readily available if you’re focused on improving your delivery performance. 

Transportation Cost Overruns 

Logistics teams can control many factors across their supply chains. Unfortunately, rising fuel costs and carrier rates are not among those factors. Cost control has always been a challenge in the transportation arena, but smart logistics teams know how to strategically minimize expenses without affecting service. They rely on advanced transportation management system (TMS) technology to optimize schedules and routes, consolidate and build loads, and otherwise make the most of available capacity and physical assets. Some logistics teams also rely on freight marketplaces or tools like Redwood’s Rating API solution to bid their business out to hundreds of carriers in real-time.  

At Redwood, we’re also seeing an increasing trend for logistics teams to outsource their  transportation to a qualified 4PL. By leveraging their relationships with a variety of carriers and consolidating shipments across multiple customers, 4PLs can often deliver big cost savings.  

Disconnected Systems 

We’ve discussed the many benefits that can be delivered by modern technology solutions like a WMS and a TMS. But companies may also be running an enterprise resource planning (ERP) system, an order management system (OMS), a materials handling system and other software. When these advanced solutions aren’t integrated, they’re not delivering their full potential. Worse, they might be working against each other. When you’ve already invested in leading-edge supply chain software, it only makes sense to maximize that investment by connecting those tools. You’ll create real-time visibility across the supply chain that maximizes your awareness, responsiveness and everyday efficiency.  

Redwood has a proprietary platform built for this purpose, called RedwoodConnect, but it can also build custom application programming interfaces, or APIs, that link your critical systems. Redwood can also make sure your systems are securely integrated in real time with important trading partners, from materials suppliers and carriers to key customers. 

Count on the Experts at Redwood  

While these are some of the most common obstacles to maximizing your supply chain performance, this list is far from exhaustive. And every supply chain faces its own unique issues and challenges. Why not get started on your journey to improved results by partnering with Redwood? As a Modern 4PL with 20 years of experience and hundreds of satisfied customers, Redwood has “been there and done that” when it comes to logistics optimization. Start leveraging our expertise by scheduling a free, no-obligation supply chain assessment today.