Logistics Transportation Efficiency

Logistic can not be separated by a transport name. Indeed, the elements of a global logistics consists of 4 points, ie warehouse, transport, and system management. However, when calculated from the elemental costs associated with the element of transport logistics activities into a single number, which is about 60% -75% of all logistics costs incurred.

Transport is closely related to the nature of the truck or car. But literally transport is an activity to move goods between the warehouse or between destinations. To move the necessary means of transportation modes and one of them is a truck.

As a supporter of the company's logistics activities, transportation is always trying to provide a minimum cost for a given logistic activities. To minimize these costs, it would need a data-data that can measure points which can be streamlined or eliminated if necessary, without disturbing the smooth operational activities. If you've found a part which can be streamlined, then we should be able to perform the priority which should be implemented in advance so that a single phase with other phases will not interfere with each other or counter-productive.

If transport ranked first in the costs or about 60% of the total cost of logistics, then naturally we will concentrate on how to streamline all costs arising from this transportation element.
The problem is, not all logistic activities have their own transportation. Many of them hang 'fate at all costs' to a third party or which is better known as 3rd party transporter.


Managing the transporter as a partner

For companies that have policies to minimize the investment in transportation, we should bear holding tranporter close friends in order to make optimum services. But a partnership is not the same as just buying or selling services, need to clear their origin and potential risks of our prospective partner page.

Step 1 is: do the proposed assessment on the transporter cooperation. Assess made to the office, pool, vehicles and patterns of administration and employee of transport company page. To facilitate this assessment should have firm transportation management team consisting of the operations, finance and HR. This team will conduct assessments and provide a viable and independent assessment of the prospective partner is.

Step 2 is: do the comparison with the shipping companies similar. Benchmarking should be done to find the cheapest yet adjusted to the standard of service requested. Oil industry for example, might be a bit more expensive because it must meet very high safety requirements.
Tip: for a warehouse that has a clear delivery schedule or with a very high load, it can also be taken to conduct an alternative rental car contract. Some contracts have been done and the results are more effective, it can reduce the costs incurred.

Step 3 is to conduct training: training is mandatory and necessary to make the perception of our partners about our company. Imagine, if there are drivers who do not know the company that asked for his services and did not know what it sends out every day with his truck, it would be sad. Please try to test some things they will ask the driver and above. Training is also good to apply discipline, safety and security of the handling of dangerous goods.


Consolidating the delivery destination

Actually this idea has been very naturally present in every truck driver's head. They have merged in the same truck delivery to multiple destinations at a time, and the result: very impressive. Not one that we also modeled the idea they will be but with a better calculation. Let us look for companies that have ideas and similarities between the two patterns that can tell obtain significant savings. Only in this case to consider the safety elements and lead time items that must be achieved.

Consolidate transporter

The original culture of Indonesia in the world of business is: going shopping much cheaper than retail shopping. So what if some contracts are serviced by only 1 or 2 transporter than 5 or 10 maintained by the transporter. What is certain is the price per unit of delivery will be lower due to high volume for the transport company. Only the need to avoid a monopoly is maintained so as to interfere with the smooth transport operations.

To have your own transport

These ideas may be explored in order to be addressed and decisions taken and approved by management would actually have the desired effect. There are risks and benefits that would be achieved if the company has its own transport. Which is better to have own truck or not, please be analyzed in accordance with the conditions of each.

Make scheduling order and delivery

This idea is the incorporation of previous ideas with a pattern of warehousing management services. Nothing wrong with that staff transport / warehouse gives a brilliant idea to his boss to lower delivery costs through rescheduling of orders and shipments. If there is already an approved schedule, analyze how many pieces of vehicles required and how this type of procurement, lease or remain partners as usual. If you need to combine ideas IV, is it better to have the company's own vehicles?.

Whatever we do to transportation activities in the warehouse service to its customers, to ensure that security, safety remains the number one. Efficiency without taking into account safety and security just like we do bet / gamble against fate. Ideally, safe, secure, fast, informative and inexpensive cost.