Saturday 12 November 2016

What To Look For When Selecting A Lead Logistics Provider

By Henry Cooper


Generally, supply chains are comprised of different parties who have varying data handling technologies. Because there's no one to create universally-recognized standards, most companies struggle to map and utilize data acquired from various sources. A lead logistics provider (LLP) is thus crucial in streamlining operations to create complete, accurate and up-to-date information that's not only easy to understand, but also actionable.

For an LLP to effectively perform their role, they need to utilize the right technical resources that help capture, collate and standardize data. It thus helps to examine this aspect carefully when looking for a suitable LLP consultant. By considering various elements, you'll be better placed to choose the right partner who will comfortably address the various challenges presented by your logistics department.

Due to the extensive nature of most logistics operations, the consultant needs to have a single system that can be accessed from multiple regions around the world. This also needs to take into consideration the infrastructural deficiencies that may exist in developing parts of the globe. The system needs to not only have enough contingencies to operate in stand-alone mode, but also possess the resources required to compensate for slow and reliable connectivity.

Even within the same sector, different companies may have contrasting approaches to supply chain management. The LLP's system thus needs to adapt to your specific requirements and provide sufficient data and detail. Besides, strategic decisions about freight routes and order prioritization could change rapidly. The system thus needs to respond appropriately to events that affect the supply chain.

Proper standardization and validation of supply chain data is integral in addressing the various reliability shortcomings that crop up in logistics information. The LLP's system needs to have the capacity to capture data from all vital sources. This then has to be processed by translating the raw data into something that's more familiar to the firm's internal mechanisms. The system has to possess the capability to do this quickly across all the relevant points.

Almost all firms use a handful of policies which outline how their operations are conducted. That said, most of these aren't properly spelled out, something which proves problematic when conveying the policies to a different party. In order to replicate your policies properly to the consultant, the latter need to be actively involved. With the consultant's help, you'll be better placed to capture all policies and utilize the best compliance-checking mechanism.

Quite a number of enterprises struggle with out-of-date reporting and analytics tools. Even firms with abundant resources may not have everything they require. The LLP's system should provide robust reporting and analytics capability that enables you define, schedule and distribute your own custom reports. This will help solve (some of) your data woes in addition to providing a deeper insight on the various elements of your supply chain's performance.

LLPs play a key role in logistics by facilitating standardization of data across the board. With a better end-to-end view of your supply chain, you're able to streamline your operations for better cost efficiency. It would thus help to choose the right partner who has the capability to manage your warehouse and distribution.




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