Logistics Optimization

Our Logistics Optimization is a process of looking at the total end-to-end supply chain i.e. mainly purchase, storage, and movement of goods for opportunities to cut cost, time, and resources needed.

Better understand how well your supply chain and logistics are performing. Supply chain and logistics is neither easy nor cheap but its typically the biggest opportunity for most companies to significantly reduce their cost and improve their performance. For most supply chain and logistics operations there is an opportunity to reduce cost by 20% to 45%. Our experts are ready to show you how!

Companies have made tremendous strides in automating transaction processing, workforce consolidation, and data capture related to supply chain and logistics operations. And, while these innovations have reduced cost by reducing manual effort, their greatest impact is yet to come. They are the essential enablers for optimizing supply chain and logistics decisions.

Ask yourself these three questions:

• Am I getting my customers what they want?
• Am I able to deliver to my customers when they want it?
• Am I spending as little money as possible to accomplish the first two questions?

If you can’t answer a definate yes to those three questions your end-to-end supply chain needs optimizing. The good news is that we have the experts that are here to help evaluate, plan, and implement adjustments to provide the most dramatic results to your bottom line and company brand.

There are a lot of areas within supply chain and logistics to evaluate for optimal performance, however, consider this one point alone.

Supplier Cost of Goods Sold (COGS) Management. COGS management is like auto maintenance. Just because you’ve changed the oil and rotated the tires at 10,000 miles, that doesn’t mean your car will run smoothly for the next 100,000 miles. And just because you’ve negotiated a low price with your supplier, that doesn’t mean you shouldn’t renegotiate once your suppliers have optimized their own internal production processes.

In fact, when you’re negotiating prices with your suppliers, you should be able to negotiate year-over-year price reductions—in the order of 3% – 5% that are built into your supply agreement.

Your suppliers should be optimizing their own internal costs so that they’re not losing money with this arrangement, year-over-year. Your suppliers should be optimizing their own internal costs so that they’re not losing money with this arrangement, year-over-year.

And within your own organization, you should be driving your own process costs down – by using six sigma, lean and other process optimization tools – so that you can drive your own year-over-year costs down. Your ERP system should be telling you if that’s happening or not. But it’s up to you to do something about it.

And we’re here to help!