Advantages of planning in logistics

Planning plays a very important role in supply logistics, as companies must procure raw materials for manufacturing well in advance according to consumer demand.

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In this context, companies need to implement effective logistics planning to remain competitive and guarantee their stability. Proper logistics management ensures that companies can meet both demand and consumer expectations.

To achieve this, logistics operators must be attentive to stock control to know how much merchandise they must replace before the product dispatch date arrives. That is why it is also important that sales and operations are aligned so that the latter knows the commercial activity to anticipate demand.

Starting from the importance of planning, in this article, we reveal the main advantages of planning in logistics.

1. Improve the customer experience.

Logistics planning helps to provide fast and good service. A planning strategy can constantly try to improve transportation processes and eliminate any disruption, as late deliveries can lead to a disappointed customer.

Providing better customer services and a smooth cargo movement process can add more value to the customer experience. Achieving this can lead to a better brand or company reputation and help generate more business. Therefore, well-managed logistics contribute to an overall positive customer experience.

2. Optimization of operating costs.

Logistics works optimally when there is extensive transparency and visibility into operations. Efficient logistics planning can analyze historical data and provide route optimization to increase efficiency and reduce fuel costs. You can also optimize asset utilization, improve business efficiency and reduce operating costs.

3. Boost profitability.

Logistics planning allows companies to gain clear visibility into their operations, improve customer relationships and reduce the need to carry excess inventory. This helps increase the order fulfillment rate, which increases the profitability of the company.

By using route optimization systems, implementing the latest technological innovations, and increasing fleet capacity utilization, companies can minimize operating costs and ensure synchronized supply chain management.

4. Better intermodal operations.

Intermodal operations involve the use of two or more modes, or carriers, to transport goods from supplier to consumer. Special standardized containers are used for intermodal operations, which eliminates the risks of directly handling the goods. These intermodal operations help reduce costs, are environmentally friendly, and are safer and more reliable.

5. Greater productivity and efficiency in delivery.

Logistics focuses on optimizing operations and improving efficiency without affecting profit margins. By reducing resource waste, delivery productivity is ensured without compromising the clearance of goods. Logistics management can meet quality standards, reduce faults, defects and deviations to ensure delivery productivity is not affected.

6. Smart route planning.

Goods must be delivered efficiently and smoothly, respecting road safety regulations and established deadlines. Intelligent route planning enables easy selection of the best routes, helps avoid traffic jams, makes it easier to monitor the status of drivers and vehicles, reduces empty miles, and ensures that goods reach customers intact and on time. This ensures a good fulfillment rate and customer satisfaction.

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Best practices for addressing disruptions in logistics planning

The pandemic has forced businesses to rely more on logistics planning to keep up with changing demands and provide essential items to customers. Although disruptive variables may be environmental, geopolitical, or technological, they can disrupt logistics networks.

To address disruptions in logistics management, some best practices need to be used to increase scalability, maintain delivery, and limit service delays. Fortunately, the modern supply chain is in digitization, with new technologies and tools promising to increase efficiency and improve accuracy.

Here, you'll find some tips that can help respond to disruptions in logistics planning:

1. Crowdsourcing.

For agility and cost-effectiveness, take advantage of crowdsourcing capabilities to optimize the capacity of your staff and vehicles. This will help save money, meet peak demand and improve last-mile delivery.

2. Contactless.

Adopt contactless payment and delivery options to keep your customers and employees safe and healthy. The flexibility to adapt to various payment options, such as touch payments or digital wallets, can also improve customer satisfaction.

3. Contingency plan for unforeseen events.

Have a contingency plan on hand to respond to unforeseen issues. Establish an “anti-crisis team” to ensure preparedness in the event of any logistics emergency.

4. Real-time routing.

Real-time and dynamic routing capabilities can help maximize delivery efficiency, emergency delivery, and multiple delivery locations on the same route.

5. Added value services.

Consider implementing cost-effective methods and value-added services for customers to ensure price control and avoid unnecessary price increases.

6. Online store.

Create a “dark store” that can be used as a distribution center to help facilitate a “click-to-cart” service, where customers pick up their orders placed virtually or through an order fulfillment platform for online sales.

7. Technological tools.

Continue to invest in new technologies, such as artificial and augmented intelligence, advanced analytics, automation, warehouse robotics, and many more, to improve your company's scalability and competitive advantage.

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So far, we have shared these advantages in logistics planning, so that knowing them allows you to evolve and adapt to the latest technological innovations to meet increasing customer expectations, generate benefits and achieve growth. Companies must implement the best logistics planning practices to increase operational performance based on the proper coordination of processes and the exchange of relevant information.