Logistics is the backbone of the global economy, responsible for the movement of goods from suppliers to customers. In today’s competitive marketplace, it is more important than ever for logistics companies to have a successful growth strategy in place. According to the website Axestrack, “Implementing a logistics strategy is essential to ensure the high performance of the supply chain. It can help you to analyze and identify the necessary organizational or functional changes which can be made for the growth of your business.”
We spoke with experts in our company, and this is what they had to say:
Andrew Gulovsen, CMO at ProfitQuest powered by Hubtek, stated that strategic planning service is the road map for success, and without a thoughtful, intentional approach to your strategy, the business will expand or contract, as internal and external forces affect it.
“In building out the strategy, an organization must first understand its current state. Through assessment of its people, processes and relationships, the business can get a true, objective view of that current state, to see the good, bad, and ugly of today’s situation. This current state analysis becomes the first point, that starting point of a system. The end point becomes the goal and objectives, aligned to the vision of success.”
“The goals need to be concrete, quantitatively driven, to represent success. Examples are a 50% increase in profitability, or a 2% increase in margin. You want to avoid generic, qualitative phrasing and terminology that’s inexact. Avoid words like “better” or “more” or simply “improved”. Real numbers need to be the goal, in order to be measured against.”
“You want to assign responsibilities for the changes to people and process. Set timelines and hold the team accountable to meet the steps to enact these changes. Meet regularly to identify successes and to review where adjustments may need to be made. Finally, celebrate the milestones and the achievements, to support a culture that embodies this new success identity.”
We also heard from Geronimo Rodriguez, Project Manager at Talentek powered by Hubtek. He affirmed that to create a successful logistics growth strategy in 2023, there are a few key elements that need to be present.
“The first one is being able to collect data, both internally and externally. Externally, to understand market conditions and trends, but mostly internally, to understand your processes. Then, once you really understand what you’re doing, you can create strong, standardized processes that are going to work for many years to come. So often, companies have strategies that fail because everything depends on a key process, which depends on a person, and then someone makes a mistake and everything crumbles down. Instead, it is worth it to take the time to break processes down, to create a plan of improvement, and to create strong, standardized ones that are going to hold up in current changing conditions and really be valid 5 years, 10 years into the future.”
“Lastly, we need to look at technology, and integrate technology in a smart way. This means, after understanding your processes, choosing technology that fits for you. It is so often that we see companies buy technology that just becomes another shiny object on the shelf, because they didn’t understand how it would bring value to them and how it would fit within their culture, their processes,
and what they were trying to do. Instead, focus on things like (for example), the TABi RMS, which is something that will help you gather data, will help you understand how you’re doing, and how you can improve. If you find technology that offers value to you, then choose that technology and use it to your advantage.”
“By doing these three things (collecting data, understanding processes, integrating technology), which really are very closely correlated, you will be able to develop a plan that will be successful moving forward and will be valid for many years to come.”
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