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Each of these situations represents an opportunity to use data in logistics to improve your processes through performance management. For example, drivers are expected to arrive on time, maintain docking schedules, and avoid dead time. However, you must exercise caution to make sure you do not damage your vendor-shipper relationship.
So, for example, outsourcing sales activity is not typically a good idea if yours is a retail sales company. For example, US-based companies may be quite fortunate if they have access to manufacturers right on their doorstep in Mexico, a country with far lower labour costs than the rest of North America.
Thus, if you find out that an expensive transport solution (courier for example) is routinely being used to deliver a low margin product to a customer, you’ll understand that much better if the end result for you turns out to be a loss. Customer-specific services. Returns management. The Value of Knowing Your CTS.
For example, companies who have their own in house vehicle fleets often struggle to deliver products on time. However, where products have special attributes, low uniformity, and require complex processes to manage, the risk increases. To assist your analysis, examples of industries are plotted on the matrix. This is a mistake.
For example, it either makes sense to outsource logistics activity to a 3PL, or it makes more sense to keep it in-house. For example, outsourcing can seem like a potential cure for obfuscated logistics costs , given that lack of cost transparency is a common issue for organisations that manage logistics internally.
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