Operational excellence in logistics has become the standard with ever-shorter lead times, the expectation of zero-defect execution quality and the permanent constraint of cost optimization. These three requirements are also part of a constrained environment linked to environmental, social (difficult working conditions) and regulatory concerns.
In this context, logistics must be reinvented to guarantee the service promise at the best cost and contribute to a company’s competitiveness.
On a strategic level, operational excellence in logistics requires the regular and continuous redesign of the service strategy towards customers (internal/external) and the optimization of distribution networks to minimize cost-to-serve.
On an operational level, the optimization of warehousing and transport operations involves thinking about automation/mechanization of warehouses and optimization of execution processes. There is also the consideration of the use of new digital technologies (IoT, big data, RPA, robots) that offer an innovative way to challenge established schemes, better plan resources, industrialise logistics practices, accelerate change and allow a performance leap in terms of productivity, quality, and customer service.
Finally, these changes must be accompanied by a review of the logistics organization; developing new professions and roles, strengthening the skills and professionalism of teams and improving working conditions.
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