How much flexibility does your company need?
Flexibility can be a powerful tool for increasing precariously thin profit margins, but only if used right.
Flexibility is an essential issue within the Transport & Logistics Industry. Not only does the number of trucks leaving your warehouse fluctuate from hour to hour, but long-term economic and political developments, structural evolutions within the industry and changing consumer demands make flexibility in the long-run an important asset for thriving in this ever changing industry.
While the word has become ubiquitous in the industry, flexibility is not always obvious. Investment in major transport and warehouse infrastructure must be done years in advance. In the short-term, flexibility is achieved through employment contracts, temporary hiring of equipment and excess stock in the supply chain. While these measures are effective, they often end up eating into already wafer-thin margins rather than increasing them.
Make flexibility work for you
Flexibility is increasingly becoming a euphemism for improvisation after poor planning and management leave managers scrambling last minute. Rather, flexibility needs to be carefully built into your operations as a part of an advance planning process.
Many seasoned Transport & Logistics professionals will argue that, all too often, processes are not predictable. But with old-fashioned analysis and some help from the fast-paced technological advances revolutionising the industry, you can predict more than you think.
By taking the time to ask simple questions in advance during the planning process, you can begin to take easy steps towards intelligently building flexibility into your operations. Today, industry professionals can also leverage the power of modern technology. With the entire supply chain now automated by computers, the wealth of data at your disposal is a powerful resource. Mining Big Data can help you extract valuable knowledge, improve processes and weed out unpredictability.
Mazars at your service
Mazars’ multidisciplinary teams around the would can help you determine in advance when and where flexibility is needed, reducing the cost of last minute improvisation. Once you’ve identified what flexibility you do need, our experts can accompany you in your investment decisions and help you to navigate the intricacies of employment law so you can have capacity deployed when and where you need it.
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Cutting Transport Costs
Traffic jams, tight schedules…transport costs are increasingly under pressure. One by one, the reasons to take a critical look at your transport routes. For the customer distribution in particular, this can yield high savings and increase the overall level of service. Savings on transport deliveries can be realized with smart saving solutions. Below are two examples.