CRAFTING A LOGISTICS STRATEGY IN TRANSPORTATION
The world is facing a crisis in the transportation network. The global economy has immense demand on transport because of a thriving trade and the flow of goods. The problem is that trade continues to thrive, transportation costs are high but the workers are less. The transport system cannot support this deficit. In logistics, one of the areas to examine is the supply chain. There are a few strategies that would come in handy in the supply chain to counter the global gridlock.
One of the main strategies is integration. Integration deals with the exchange of material, resources and information. There is a need to improve the exchange of information in the supply chain. When information flows seamlessly, there is speed and efficiency in work. One of the main things to do is to avoid too much control in the flow of material and information but to ensure that there is collaborative management.
This logistics strategy will increase efficiency. It also ensures that the company delivers to the client without incurring great costs in the whole supply chain processes. Integration also involves (Logistics Service Providers) LSP’s having a relationship with their clients. Having this relationship is an uphill task but it is a way to change the face of the business. With customers having a range of demands, the LSPs can look at the demands that they can meet and communicate to the client.
In conclusion, very few logistics companies understand this gridlock problem and they don’t know that reducing the costs of transportations and increase engagement with clients is the way forward. When logistic companies use the integration strategy of easing costs and the flow of information, then they will gain a competitive advantage and alleviate the gridlock crisis.
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