Increase sales and profitability with logistics technology

Author without image icon
Editorial
14 October 2019
3 min

In more and more boardrooms, it is becoming clear that logistics and supply chain not only cost money, but can also generate additional turnover and margins. This does require an adequate logistics and supply chain strategy. And the right tools and technology to implement that strategy. The trade shows ICT & Logistiek and Logistica on 5, 6 and 7 November will show you how to make a difference with logistics and supply chain management.

The fastest-growing companies in the Netherlands have tightened their grip on logistics in recent years. Bol.com had initially outsourced its logistics, but has now built and equipped its own distribution centre in Waalwijk. Coolblue used to use external parties to deliver washing machines and refrigerators, but has now set up its own delivery network. They are not the only ones. In the US, Amazon has set up its own air cargo division, which is expected to have 70 of its own planes flying around in two years' time.

Logistics is more than just a cost for these companies. Logistics is one of the most important tools to improve customer service. By taking logistics into their own hands, they are able to differentiate themselves from competitors by, for example, delivering faster and offering just that extra bit of personal service. 'Everything for a smile', says Coolblue for good reason. The commercial successes of these and other online retailers are largely due to a clear logistics strategy.

Increasing added value

What is true for retail is also increasingly true for companies in other sectors such as wholesale. Logistics is the tool to increase added value in the chain. By increasing delivery frequency and reducing delivery times, wholesale customers need to keep less in stock. By delivering products in the right order, at the right time, at the right place and/or in the right kit, customer employees lose less time searching, sorting and lugging.

For manufacturers, logistics is a tool for perhaps skipping one or more links in the chain. Those able to process consumer orders themselves can take their products to the (online) market themselves. He can make his stock available to customers, allowing them to expand their range without the need for extra working capital. The online orders these customers receive can be handled by the producer himself at an additional margin.

Importance of strategy

Research shows a clear link between a company's profitability and its logistics and supply chain strategy. That strategy must be aligned with the business and commercial strategy. That means making choices. Do customers come for the lowest cost? Or on the excellent service or innovative product range? Practice shows that few companies make such choices and have a clear strategy. They want to excel on all fronts at once, but then fall just short on every front.

Once you have an adequate strategy, it is important to implement it. This is where digitalisation, robotisation and artificial intelligence play an important role. Digitalisation helps to reduce lead times, prevent errors and cut costs. Roboticisation and robotisation increase the speed, flexibility and quality of your operations. Artificial intelligence helps you manage complexity and automate standard decision-making processes, giving your organisation time to solve anything that threatens to go wrong. And for everything needed to actually make a difference.

ICT & Logistics and Logistica

ICT & Logistica and Logistica will take place on 5,6 and 7 November at the Jaarbeurs in Utrecht. The trade fairs are dedicated to Smart Warehousing.Within this theme, both partners and the substantive programme will show practical examples that will inspire visitors and offer them tools for their business operations. Visit the Logistica and ICT & Logistiek websites for more information or register here directly.