Accurate and effective scheduling is essential to every supply chain. Individual tasks or operations must be accomplished when necessary or promised. The management of this is called logistics planning. To put it another way, these scheduling processes ensure that what has to be done gets done – on time and on schedule.
Table of Contents
- Why is Logistics Planning Important?
- 10 Benefits of Using Logistics Planning Software
- How to Pick the Right Logistics Planning Software
Why is Logistics Planning Important?
Logistics planning comprises merging job scheduling and execution for a smooth supply chain process. If you don’t employ proper logistics planning, you’re more likely to have unfulfilled orders, inventory shortages, and missed deadlines. Rescheduling at the last minute, staff overtime, expensive penalties, and dissatisfied consumers are all possibilities.
Time and resources are wasted when schedules aren’t up to par. If you have to make multiple deliveries or schedule a late delivery outside of typical business hours, it will cost you money. As a result of poor driver routing, your labor and fuel costs would rise. Customers that are dissatisfied with missed deadlines will eventually abandon ship.
For all of these reasons and more, logistics planning is critical in your business. Using logistics planning software is the simplest way to do this.
10 Benefits of Using Logistics Planning Software
Logistics planning tools may be used to streamline all aspects of the supply chain. It’s a time and money-saving strategy for processing materials, manufacturing, inventory, client orders, and deliveries, and it makes employees and customers happier.
Here are some instances of how logistics planning software can help you improve and streamline your supply chain.
1) Makes the supply chain logistics process easier
At times, the supply chain operating phase can be challenging. Orders do not follow a consistent pattern from month to month, and warehouse inventory levels change. Over the course of an eight-hour day, delivery is rarely arranged in a straight physical line. That isn’t how things work in real life.
For individuals in charge of your company’s supply chain schedule, the whims of the real world cause a plethora of issues. Scheduling challenges are exacerbated by transportation delays, last-minute changes, and allegedly unreasonable customer requests.
When it comes to smoothing out the rough edges of the supply chain logistics operation, logistics software shines. Tasks that would ordinarily take a person several hours to perform – and then redo because things change – may now be completed in seconds with the correct software. Tasks that repeat themselves are now automatically scheduled. Last-minute modifications can be measured and optimized with the push of a button. Everything comes into place when details are kept track of and reports are made. Life becomes easier since logistics planning software takes care of everything for you.
2) Improves delivery timeliness
You realize how critical it is to maintain a high level of on-time delivery performance. Logistics planning software takes the uncertainty out of route planning and ensures that drivers choose the most efficient routes. This will assist you in improving your on-time delivery performance, which will promote client loyalty.
3) Minimizes last-minute scrambling.
Poor planning can lead to a lot of last-minute scrambling. Deliveries must be postponed or canceled; drivers must work overtime; and time and energy must be spent revising previously set plans. Last-minute alterations are reduced with the use of logistics planning software.
The software helps you to plan ahead of time rather than scrambling at the last minute. By avoiding last-minute rushing, you can save money. Changes in plans and hasty orders are more expensive than planning ahead of time. If you employ logistics planning tools, you won’t have to plan costly additional deliveries because something changed.
4) Improves last-Mile delivery
The most difficult part of the supply chain is the last mile. It makes no difference how effectively you handle the first mile of the process; if you can’t efficiently drive the product over the last mile, it’s all for naught.
The last mile is what customers see. They aren’t privy to the purchasing, inventory, or packing; all they see is what is brought to their front doors. If your delivery is ever late or incomplete, it reflects poorly on your entire firm.
You may rest assured that the final mile will go smoothly if you employ logistics planning tools to manage the complete supply chain. All of this comes together to ensure that customers receive the appropriate goods at the right time.
5) Reduces inventory
Inventory control becomes more difficult when plans alter. You’ll need precise scheduling to guarantee that each stage in the process progresses at the proper pace if you want to finish on time. You want everything to arrive at the same time, not a day early or a day (or more) late. If things don’t go as planned, you may face higher-than-expected operating costs or, even worse, inventory stockouts that cause the order to be delayed.
To ensure that your resources arrive in time to fulfill your requests, you’ll require carriers. This needs a high level of precision in scheduling based on previous patterns and records. You don’t want to order more goods than you need or have room for, and you don’t want to be shorthanded as a result of unexpected demand.
Cutting-edge logistics planning technologies can forecast demand and then organize inventory shipments accordingly. It can also adapt to changing demand on its own. You make the most of your storage space while remaining confident that you’ll have the proper inventory on hand when you need it.
6) Increases workplace productivity
The adoption of logistics planning software will considerably increase the efficiency of your organization. Rather than setting timetables and routes manually each day, the computer handles it for you — faster and more precisely. What was once done by hand has now been automated, allowing personnel to concentrate on more vital responsibilities.
7) Saves money
The efficiency of the entire supply chain may be improved with logistics planning tools. Vehicles travel on more efficient roadways, spend less time on the road and in traffic, and experience less wear and tear. There are fewer drivers needed, and those that are kept work fewer overtime hours. Last-minute changes and rescheduling, as well as the expenditures associated with them, are almost eliminated.
These savings can be significant. According to Mercury Associates, better logistics planning can save you between 5% and 10% on total cost of ownership (TCO). According to Price Waterhouse Cooper, managing a company’s supply chain can result in a 15% reduction in overall logistics expenses.
8) Boosts scalability
As your business grows, you’ll need to be ready to handle more customer orders. You don’t want to be saddled with more fixed costs if your firm faces a short-term downturn.
Using logistics planning tools, you can ensure that your firm grows in lockstep with your product demands – and that you have adequate people and supplies on hand to meet customer requests. Logistics planning software provides you with the information you need to make educated decisions about expanding or contracting your operations. You’ll know when you’ll need to order extra materials, add more cars to the road, or hire seasonal personnel. If demand declines, you’ll know when to cut back on resources and hours.
9) Improves customer satisfaction
Logistics planning allows you to do it right the first time, which your customers will appreciate. You’ll be able to produce things exactly when clients require them, on time and in full. Your customers will be able to see your delivery schedules, which can be readily customized.
Logistics planning’s goal is to help you run a more accurate and productive business, allowing you to provide a product or service that your consumers demand. Thanks to logistics planning tools, the better you operate your business, the happier your customers will be.
10) It makes your life easier
When you use logistics planning software, you make things easier for your employees and management. Because there is less manual labor, there is a lower risk of human error. Actions involving a lot of swearing and hair pulling can now be done with the touch of an on-screen button. Scheduled tasks that previously seemed Herculean have become normal. Allow the logistics planning program to handle the heavy lifting, so your employees may focus on more productive and pleasant tasks. You may rest easy knowing that your logistics planning software is working behind the scenes to guarantee that your business works as smoothly as possible with the fewest possible errors. It takes a lot less time than planning everything out by hand.
How to Pick the Right Logistics Planning Software
Businesses need logistics planning software in order to be more efficient and competitive. Look for software like EasyRoutes, which employs cutting-edge technology to help you better manage schedules, plan routes, and get detailed insights to help you better manage your whole supply chain.
Visit EasyRoutes.app to learn more about how EasyRoutes can assist you with your logistics strategy.