Logistics strategies

Whether you have a large or small company, a new company or a company that has existed for decades, if you deliver products, it is necessary to have a logistics system that safely and efficiently delivers those products from point A to point B. You may have a great product but you must have and a strategy on how to market the product to the customer with minimal cost and with high quality delivery.

What exactly do you get from us?

The apps, methods and tools we use have already been applied in more than 100,000 companies worldwide.

RTM (ROUTE-TO-MARKET) STRATEGY

The RTM (route to market) strategy provides a roadmap to transfer your products, from the factory or warehouse, to customers, distributors and / or end users in the most efficient and optimal way, with the aim of increasing sales to customer satisfaction.

Call us to define the most efficient way for your goods to reach your customers.

X-DOC (CROSS DOCKING) STRATEGY

Distribution strategy in which the goods are delivered to the end user via a cross dock terminal. Cross dock terminal is a transshipment terminal that represents the point of consolidation of incoming and outgoing flows, but without storage and long-term storage of goods. This strategy is good because there are no inventory costs, no storage costs because goods are stored for a short time but have high operating costs.

DIRECT DELIVERY STRATEGY

This strategy is often used by manufacturing companies that deliver their products directly to a customer or retail outlets without going through a distribution center. This strategy reduces lead time, eliminates storage costs. The disadvantages of this strategy are the high level of inventory at the manufacturer, high distribution costs. It is often used for large deliveries and when the manufacturer or distributor has full track load (FTL).

DELIVERY STRATEGY WITH STORAGE

This strategy is used by distribution centers. The goods are delivered from the manufacturer to DC and stored there. Deliveries to customers go from DC. This strategy has high inventory and storage costs, but there is less risk of OOS (out of stock) and less safety stock.

MULTI-ECHELON SUPPLY CHAIN STRATEGY

A multi-echelon approach is the best solution for inventory management in multi-layered supply chains. This method manages total inventory across the network and optimizes total inventory in the supply chain, rather than looking at each warehouse as a separate entity.

MOB (MAKE OR BUY) STRATEGY

This strategy provides an answer to the question of whether a company should build its warehouse and invest in its own logistics capacity or rent the capacity from a provider. Companies often use this strategy when they do not have enough storage capacity or when they do not have their own transport but use outsourced transport services of a 3PL provider. The strategy helps in making strategic decisions about outsourcing.

JIT (Just In Time)

This strategy implies delivery on time, i.e. that each process in the production cycle receives the necessary material on time and in the quantity it needs. It is used in production companies. In practice, can often be found “False JIT” when customers demand more small deliveries from suppliers with minimal quantities of goods. In this way, they avoid the cost of keeping inventory, but this increases the operating costs of the supplier, which affects the overall price.

JIS (Just In Sequence)

This strategy is used in manufacturing companies, and is most prevalent in the auto industry. It is applied on assembly lines where the right assembly parts are delivered at the right time. Rows of mounting parts are supplied. There are fewer stocks than at JIT and less time is spent on choosing the right item because the items come in a row.

JIC (Just In Case)

It primarily binds to inventory. It is often called a “case-by-case strategy” because companies increase safety stock in case of a sudden demand for certain items. Companies that use this strategy have difficulty planning demand or have large jumps in demand and therefore keep high inventories just in case.

Call us to define the best logistics strategy for your company