Best Practice For DHL To Reduce Cost Of Material Labor And
Best practice for DHL to reduce cost of Material Labor and, overheads
Create visibility to create control.
Companies are finding that inadequate transportation spend visibility is leading to unanticipated budget discrepancies, unexpectedly low product margins, and, in some cases, higher rather than lower total costs when sourcing from low-cost countries. As Figure 1 shows, international transportation expense is the top area for budget discrepancies. FIGURE 1
International logistics is all about managing a Network of third-party providers. The foundation for controlling this process is visibility. For a number of best practice winners, visibility does not stop at identifying shipment delay or inventory issue. Rather, an alert is the first step in a structured notification, resolution and root cause analysis process. In particular, those companies with strong Six Sigma heritages are using that discipline to create improved international logistics reliability.
Visibility into order and shipment life cycles is as critical as third-party partnerships in dealing with the complexities related to global logistics execution. By achieving early visibility into exceptions and proactively alerting appropriate parties involved, companies can mitigate the negative impacts of hand offs and other potentially delaying processes in global logistics.
This visibility and exception-management infrastructure needs to extend across the various legs and milestones involved in the global flow of goods. Visibility by itself is not a silver bullet in solving all complexities related to global logistics. Yet, when combined with intelligent exception management, logistics planning and execution work flows, this layer of global visibility can be a very powerful weapon in managing variability in the global flow of goods.
Recommendations
Envision the future, act on the
Create visibility to create control.
Companies are finding that inadequate transportation spend visibility is leading to unanticipated budget discrepancies, unexpectedly low product margins, and, in some cases, higher rather than lower total costs when sourcing from low-cost countries. As Figure 1 shows, international transportation expense is the top area for budget discrepancies. FIGURE 1
International logistics is all about managing a Network of third-party providers. The foundation for controlling this process is visibility. For a number of best practice winners, visibility does not stop at identifying shipment delay or inventory issue. Rather, an alert is the first step in a structured notification, resolution and root cause analysis process. In particular, those companies with strong Six Sigma heritages are using that discipline to create improved international logistics reliability.
Visibility into order and shipment life cycles is as critical as third-party partnerships in dealing with the complexities related to global logistics execution. By achieving early visibility into exceptions and proactively alerting appropriate parties involved, companies can mitigate the negative impacts of hand offs and other potentially delaying processes in global logistics.
This visibility and exception-management infrastructure needs to extend across the various legs and milestones involved in the global flow of goods. Visibility by itself is not a silver bullet in solving all complexities related to global logistics. Yet, when combined with intelligent exception management, logistics planning and execution work flows, this layer of global visibility can be a very powerful weapon in managing variability in the global flow of goods.
Recommendations
Envision the future, act on the