Logistics in a crisis
In times of crisis, well-organised logistics becomes a competitive advantage for companies. Efficient supply chain management and competent digitalisation help businesses not only to overcome difficulties, but also to find new opportunities for growth. This article by Sargona Private Capital company contains key recommendations for adjusting logistics to the challenging times.
Analyse and review your client base
In tough times, it's important to focus resources on priority customers to ensure a steady flow of money.
- Identify key customers - those who generate the main revenue and those whose orders are regular.
- Revise contract terms. Offer more flexible terms to priority customers so they don't leave for competitors.
- Focus on stable customers. It is better to work with small but regular customers than to chase large but irregular ones.
Strengthen relationships with contractors
Strong relationships with your contractors will be a reliable support for your business in times of crisis.
- Optimise supply terms. Negotiate with suppliers and offer them discounts or better terms than your competitors.
- Revise your purchasing structure. Sign long-term contracts with partners to fix prices for goods and services.
Increase the level of service
At all times, customers value reliability and attentiveness. And in times of crisis, a high level of service can be a major competitive advantage to retain customers.
- Collect honest feedback. This will help you understand what you need to improve and what your customers expect from you.
- Quickly correct deficiencies. Respond to errors and mistakes by demonstrating a willingness to work on quality.
- Improve communication. Keep in constant touch with customers and be available to them in different communication channels.
As Sargona Private Capital Ltd noted, technology helps not only to track work in real time, but also to optimise it.
- Keep your website and social media up to date. This makes your business accessible to old customers and helps you find new ones.
- Implement modern IT systems: ERP (enterprise resource management system) and WMS (warehouse management system) for inventory control and management, demand forecasting, route planning.
- Analyse data to make informed decisions - the figures will tell you where you are losing money and what you can improve to increase your earnings.
Digitise logistics processes
Assets that are not generating revenue are dragging the business down. Reducing them will provide additional resources.
- Sell unprofitable assets and invest in high-priority areas.
- Optimise your fleet and warehouse space - use them as efficiently as possible to reduce costs.
- Look for alternative suppliers with lower prices for products or services.
- Optimise routes to reduce fuel costs and delivery time.
Optimise assets
In times of crisis, good employees become the most important resource and support for your business.
- Avoid mass layoffs - they can lead to a loss of qualified staff, and it will be difficult to replace them after the crisis. Besides, it will be a shame if a trained employee goes to a competitor.
- Work on the corporate culture. People want to feel confident in the future, and the support of management plays a big role here.
Support your team
