3 Tips for Optimum Product Distribution

3 Tips for Optimum Product Distribution

The following article is a guest post.

You don’t have to be an MNC to achieve a sufficient amount of savings concerning your supply and distribution network. Certain companies have been known to save money between the range of 2 to even 10 million dollars.

A slight shift in the patterns and cost of all the supply aspects can mean the difference between success and going out of business. That’s just how chaotic it’s become in today’s day and age.

A systematic approach to tackling each of the drawbacks faced by your company plus improving upon the existing conditions is a sure-shot way of nipping the problem in the bud itself.

Here are a few tips as to how to go about it:

1. Full utilisation of assets.

The key is, fewer assets yielding more productivity.

Your window of opportunity is 24 hours. The more assets you manage to use during that period, the better.

Of course, the fact of whether they are leased or owned will also be a determining factor in solving the problem of having underutilized assets.

Say if you happen to be in the transport sector, something as simple as using fewer trucks and spreading out the transport of your goods through the day can go a long way. Compared to delivering the goods during the early morning hours thus leaving your truck fleet idle through the remaining hours of the day.

In this scenario, your assets for the rest of the time period would be as good as useless.

Same applies to when you are giving away promotional products for spreading brand awareness. You must realise the potential of promotional products and fully utilise it so that every bit of it adds up to the end-results.

2. Outsourcing.

Initially, this might seem like a dicey gamble to take. But the simple fact of the matter is that a good 85% of businesses outsource a certain portion of their management or supply chain operation.

In most cases, two of the main functions happen to be warehousing and transport.

Besides generating cost savings, other benefits also include access to certain specialized skills of the other company at hand. Plus, the fact that outsourcing will provide the main company with a better chance of accessing more technology or resources.

A successful measure of outsourcing is when both companies are getting exactly what they want through a proactive and healthy partnership.

3, Performance measurement.

This is the final objective. All the other factors are merely adding up to what really matters to your brand and company at the end of the day, which is the end game objectives of your overall supply chain.

You’ll need to manage and monitor that on a daily basis, just so that you can set both idealistic and realistic goals for the future performance of your company.

Accordingly, you should pick the KPI’s (Key performance indicators) and make them part of your work culture so that anyone and everyone will notice how meaningful relevant and essential they are to the overall performance and performance improvement of your company. Setting up your very own objectives and goals will certainly help you discover the KPI’s that are unique to your company.

Finally, the overall size of your company is irrelevant.

The main fact of the matter is that if you manage to follow these steps, in time you will definitely find that your company would have generated a significant amount of money in terms of cost savings.

Then again, there are a variety of obstacles such as the problem of shifting energy costs plus the time-and-again debated topic of centralization vs regionalization, just to name a few.

In order to overcome them, you will have to chalk out a list of priorities and assess them one at a time to properly measure your strengths and weaknesses in order to reach maximum efficiency in the distribution process.

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