Optimised logistics is often a financial bull’s-eye
Logistics is a science in itself, and an incredibly important element in the production process. It’s not just about transporting parts from A to B, quickly and at the right price. No, logistics is so much more. A useful tool in this respect is Value Stream Mapping, which looks at every aspect of a part’s life, from it being manufactured in the right volume to it being installed in the right place. Imagine you know that a volume of 10,000 parts can be manufactured in China at an incredibly good price and that you have to pay a freight charge, plus warehousing charges. If it is then a year before the part is installed and the invoice sent out, then perhaps there is something more profitable that can fill your shelves in the meantime.
It may turn out that an agreement with a manufacturer in Eastern Europe costs a few pence more per part, but the freight charge is a lot less, and you can get the 2,000 parts you need for three months of manufacturing, spread the cost better, achieve faster revenue streams, and free up space on your shelves. Perhaps you already know all this. As the customer, you are the expert when it comes to knowing what you need to have in stock. However, if you are looking for a partner who can advise you on warehousing matters, who always lets you know if the unexpected happens, and who is renowned for being organised, then look no further.