Any business leader who did not appreciate the importance of their company’s supply chain and logistics function a few years ago certainly does now. The shipping function has everyone’s attention today.
The logistics industry faces exceptional times, and the pressure it’s placing on leaders from all directions (including from customers) has never been greater. Leaders don’t need to understand the day-to-day details of what’s going on to deal with the situation, but there is still ownership at all levels for supply chain execution and results.
Most importantly, it’s the leadership’s responsibility to ensure the logistics team is in a position to be successful. It needs a balance of autonomy and accountability because, in the end, it’s the team who are the supply chain experts.
As a leader, you need to let the people who know the supply chain do their jobs while staying on top of the relevant data and information to ensure things are happening as they need to be. In other words, a trust but verify approach. In the end, what happens with logistics impacts every other part of the organization and is ultimately your responsibility. But you can’t get caught up in the day-to-day because your focus needs to be on the strategy and bigger picture ideas. And frankly, your logistics teams don’t want you involved in the daily decisions anyways.
What Do Supply Chain Teams Need?
The best way to help a logistics team is by giving them the decision-support tools that help them perform their jobs best. The good news is logistics decision-making is best when it’s data-driven. And the function itself produces plenty of data.
The even better news is that most good logistics teams like the challenge of hitting KPI’s and metrics for measurable results like service and cost. But keep in mind, there is almost always more than one way to get something done. It’s the results that matter. And this is something about many logistics professionals’ strong desire for autonomy that needs to be understood.
Most logistics decisions, like choosing which carrier to use, almost always come with a trade-off on cost and service performance (a.k.a. delivery speed). Even the most seasoned logistics pro has had to be adaptable when dealing with the pressure the logistics marketplace is under right now. Technology, flexibility, and out-of-the-box thinking are common to successful supply chains these days.
Setting Your Logistics Department Up For Success
Remember, it starts with a trust but verify approach.
Leaders can set their logistics team up for success with three simple steps.
- Get them the tools. The investment in technology, like a TMS integrated with a dynamic pricing solution, helps the supply chain execute their day-to-day and find the best routing options.
- Set clear expectations. Leaders need to be clear about what is measured and why, and need to include internal stakeholders’ input so meaningful data points and benchmarks are identified.
- Have a process to ensure consistency. There needs to be a simple and repeatable method of gathering the data so measuring success can be done regularly, and necessary course corrections can be made.
The supply chain volatility of 2021 is continuing so far in 2022. So, business leaders need to continue to push their companies to keep up and be ready for what the year will bring.
Visit www.loadsmart.com to learn more about our tools for supporting better data-driven decision-making in your logistics operation.
Transforming the future of freight, Loadsmart leverages technology and logistics data to build efficiency around how freight is priced, booked and shipped. Pairing comprehensive logistics technology with deep-seated freight industry expertise, Loadsmart fuels business growth, simplifies operations and increases efficiency for carriers and shippers alike. For more information, please visit: https://loadsmart.com. Move more with less.