This is why workflows are everything for Logistics companies
Logistics companies aiming to succeed in their operations need to excel in one of the following two strategies.
- Get really, really, big.
- Specialize.
Scale: become big
Logistics may not be an industry where big brands typically have a significant presence in the minds of most consumers but global players such as UPS, FedEx, Maersk, and DHL have achieved widespread recognition. This is a clear indication of these brands' success.
This is all for a purpose: in logistics, a global reach means you may achieve economies of scale that are almost unattainable to others. Once you have your operating fleet of planes, vessels, or trucks that creates a smooth network of origin and destinations globally, you may enjoy an operational cost that others are unlikely to match.
Specialize: Concentrate on your niche and master it to perfection
Scale-up is not the only dimension. You wouldn’t expect a FedEx courier to deliver a brand new car. Specialization is also a powerful path to success in the field of logistics.
There are an endless amount of specializations. We see companies specializing in metals equipping themselves with sturdy cranes and equipment to lift and move the goods. Others may opt for frozen foods, where an end-to-end cold chain with a massive reliance on checks and controls is in place. Or think of tropical fruits, both vulnerable and valuable.
Each of these commodities requires dedication and special care. While the scale of the operations may be modest, those who work in these fields possess an exceptional depth of knowledge and passion when discussing commodities such as fruits, metals or frozen goods, as if they were the original inventors of these products.
Once you know how to handle a specific commodity best and most efficiently, your customers will recognize that and remain loyal. You will stand out and succeed.
What does this all have to do with workflows?
Scaling or specializing requires a lot of discipline, and to do both at the same time practically calls for superpowers, given the way operations must be carried out.
Scale: Most customers expect nothing less than consistent, high-quality, globally delivered services at rock-bottom prices. That requires companies to take standardization of their processes to the core.
Think of it like becoming a ‘Mcdonald's' of logistics operations. This way, scaling becomes possible by having standard procedures, which are optimized all the time and given the time to ‘wear in.’ One removes lots of friction from the operations, allowing them to execute at scale cost-effectively. Repeat, repeat, repeat: each time managing an identical workflow.
Specialization: Understanding the commodity is key to setting up operations, from whom you hire to your target customers. In operations, your niche knowledge is an absolute requirement.
Different techniques are used for handling and inspecting an avocado when compared to even a mango. Everyone in your operations, from the person who opens a container and checks cargo conditions to the customer service employee. It is crucial that the entire team has access to accurate information. Your know-how of the commodity needs to become embedded into everything you touch and do. It’s your workflow!
Workflows for managing supply chain operations
At Cargosnap, over the past years, I have had the privilege of making a journey towards this realization by working with some of the biggest and most specialized companies in their businesses.
With Cargosnap, customers can ‘drag-and-drop’ their own workflows, enabling them to scale and specialize. Features such as photos, videos, scan (barcodes, license plates, and container numbers) make their inspection complete and available to everyone in real time. Logistics professionals can have efficient processes and offer end-to-end logistics inspections.
Curious to know more about why workflows are the secret sauce for your operations? Read more here.
