Logistics Keys

The 10 Keys to Global Logistics Excellence


Now days the logistic is important in all companies, if you have an excellent logistics probably all the operations will be working with good results. Globalization of the world economy and the supply chains has advanced at an almost unbelievable speed. This growth came because the companies will reduce their cost and increase profits in a shorttime and by the same time the service level will be better and probably the customer experience change a lot.
On the other hand all the operations in the process are going to the increased ease of global sourcing, manufacturing quality improvements overseas, and a reduction in glass-related tariffs, its market dynamics will changed substantially.
A good company with excellence at the globalsupply chain won’t be just a desirable goal; it will in fact become a fundamental requirement for the business to succeed and prosper. If we consider that standardization is a model for reducing cost and increase profits the best way to make a company important and sustainable is entering into a global supply chain. It is not easy and required expertise but with all the technology it can be possibleand probably the investment is going to be less than the cost of the implementation.
If we really make an analysis we will find that all the expensive cost became from the transportation area and delays, the manufacturing steps involves delivery, involving multiple governments, companies and third party service providers. So we spend time and we need to consider distances, probably is cheap toproduce in Taiwan or China but if the company is in USA the transportation cost is higher, and we need to think in the frequency of the transportation or the inventory cost, so we have some opportunity areas to take care and don’t lost savings.
• Sub-optimal sourcing results due to inadequate total cost data
• High overhead costs to manage the global sourcing and logistics function
• Highinventories and lost sales as companies struggle to match supply and demand in the long supply chain
• High costs for expedited freight
• High levels of inbound lead-time variability
• Reactive rather than proactive logistics management
• Disconnect between inbound international movements and domestic transportation operations

The Ten Capabilities of Global Logistics Leaders

TotalDelivered Cost Management
This area includes the ability to analyze and predict the total supply chain cost, this is an important resource in a company, because at the end everything is around the incomes and we need to be careful in the prediction from the source of supply to its final point of distribution including the capability to roll up both international and domestic logistics costs byproduct and delivery route.
All capabilities are already included in software´s and these programs bring monthly results.

Global Logistics Process Automation
Actually this type of logistics in general only a few companies have well automated global logistics processes. This includes the ERP but sometimes this type of system doesn’t include all the activities and some operations need to bedone by a manual way. But automatization is the best now a days, because the global logistics leaders have deployed technology that greatly automates
many of these manual booking processes, managing global transportation carriers, rates, and execution in a single environment.

End-to-End Visibility
Visibility systems should make it easy everything in the process because we can find anddrill down on information from many points of reference, such as the purchase order number, SKU, freight bill, etc. Users should then be able to easily see the related information. Visibility systems should also facilitate the development of “role specific” system configurations, this visibility can be obtained using ERP, with this the companies will reduced cost and time, especially in the inbound...