Tips for logistics management during Black Friday sales and the Christmas season

Black Friday sales, Christmas, and the New Year’s holiday period are notoriously the busiest times of the year for most retail businesses in Australia. While this is great for sales, it also means it can be a make-or-break period for companies that rely on the holiday boost. Therefore, business needs to prepare for the influx of extra stock and customers that will occur in the coming months ahead. This includes preplanning and logistics management with freight companies and logistics partners.

Prepare for unexpected delays

Luckily most of the challenging logistics backlogs that began with the Covid-19 pandemic and lockdowns have been resolved with time, and the 2023 season should so far have less hiccups and delays. However, there has of course been further issues that have popped up over the last couple of years including supply chain shocks, floods, and rising prices caused by inflation. It is recommended to prepare in advance to ensure all your stock arrives on shelves on time and integrate a time buffer in case of any unexpected disruptions that may occur during the freight delivery to stores. In most circumstances, it is better to have the stock available a day early, compared to a day late.

Prepare your systems for online orders

The demand for online shopping has rapidly accelerated over the past decade, with a surge each Black Friday sales and Christmas period. It is important to prepare your business website and systems for increased capacity around this sale period – especially if you are planning on having any online flash sales or limited-edition items. It is essential to integrate accurate live business intelligence and freight management software to assess where orders are coming from/ to and whether they will be collected from a store or 3pl warehouse. Customers rely on accurate reporting of stock and items to ensure there are correct numbers available. They don’t want to find out the item they have bought is sold out due to order double-ups or misaligned stock tracking.

Flexible Logistics Management and Solutions

For retail stores with limited space, overstocking can become a huge concern around busy Christmas periods. The store can run out of storage space, leading to hazardous, inconvenient, or expensive alternative solutions. Alternatively, the stock delivered in-store does not end up getting sold as way too much was delivered in the first place. In these circumstances, liaise with your 3pl warehouse and/or retail transport provider to find out if they have an appropriate solution for your business. Whether it is holding excess supply in a retail logistics management warehouse, or ‘drip-feeding’ stock into stores over consecutive days to ensure store space. Partnering with a dedicated logistics management company can help ease some of the problems and stress that occur around the holiday season.

Ensure stock visibility for customers

It is important for internal teams to have visibility over their products with good reporting software. However, it is equally as important for customers to get a good understanding of where their purchases are if they have ordered online. Keep the customer informed and improve satisfaction by providing them with delivery estimates before they purchase the product. Follow this up with live tracking and updated estimates when circumstances change. If the customer opted to pickup in store, it is important for them to know when the stock has arrived and when it is suitable to pick up. Whilst most of these suggestions may seem intuitive, it is important they are automated and integrated into your logistics management with the most up-to-date software, so that they can occur at an increased capacity during busy periods.

Logistics Management Partnerships during Christmas Periods

Are you looking for a logistics management partner to help support your business over the busy Christmas, New Year’s, and Holiday period? Look no further than Elite Logistics Australia. Our team of experts are veterans in the 3pl warehousing and retail transport industry. We pride ourselves on our integration of the best technology solutions to ensure all your stock is tracked and accounted for with pinpoint accuracy.

To find out more about what solutions we offer for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

How Does Logistics Management Work at Elite Logistics Austraila

Elite Logistics Australia is a leading retail transport, 3PL and 4PL logistics management company. Our team utilises state of the art freight management and supply chain technology to streamline the logistics experience for businesses across Australia. The Elite Logistics business can be divided into three divisions: retail transport, 3pl warehousing and logistics solutions. However, our ability to service all 3 areas allows us to provide thorough, flexible solutions catering to your specific business logistics requirements.

Our History of Logistics Management

Elite Logistics Australia began in 2006 under the name ‘elite retail logistics’. It was a state-based operation focusing on retail logistics for the fashion industry. Although originally targeting the Adelaide market, the operation expanded to other states such as Queensland, Western Australia, and Melbourne. In 2020, each state-based operation integrated under the national ‘Elite Logistics Australia’ enterprise. This merge was shortly followed by the acquisition of CS Logistics’ Melbourne warehouse; allowing ELA to branch out into the 3pl warehousing, pick and pack warehousing and logistics solutions divisions.

Retail Transport

Our retail transport services exclusively cater to fashion retail high streets and shopping centres. Elite logistics Australia has an in-house fleet of fully insured transport delivery vehicles in Sydney, Melbourne, Adelaide, Perth, and Brisbane. Transport solutions can consist of store-to-store deliveries, store-to-DFO, DC-to-store and special retail projects. Our in-house retail logistics management services mean you will only have to deal with Elite logistics Australia rather than a variety of carriers. We will set up your business with freight management technology that provides live, real-time freight monitoring, alongside monthly financial reports. Giving you the data to help streamline operations. You can organise custom or daily driver runs to greatly improve efficiency on store-to-store transfers. Our tailored approach can give you the increased capacity and speed of a large-scale carrier, with the specialised and detailed custom capabilities of a smaller local freight fashion delivery specialist.

3PL Warehousing

Elite Logistics’ Melbourne-based 3pl warehouse facility spans 23,500m2 racked, with a 12,000-palette capacity. Located in Truganina, the warehouse is perfectly positioned with practical access to key freight and road infrastructure such as the ring road, west-gate freeway, wharf, and Melbourne airport. Ensuring rapid transport and delivery capabilities within Victoria and around Australia. We service retail, fast-moving consumer goods and light industrial sectors within our 3PL warehousing and retail transport operations. However, we operate on a contract basis and require that businesses must be operating on a minimum of 1000 palettes a year to offer our 3PL warehousing capabilities. E-commerce product fulfilment, inventory management, quality control, stocking, returns management and labelling are all logistics management services integrated with our 3PL warehousing.

Logistics Solutions

Elite Logistics Australia partners with leading transport companies to negotiate an optimised carrier experience for your business. Our goal is to help you cut costs and increase efficiency. Rather than requiring an in-house logistics team, staff dealing with multiple carriers, the stress of missing goods and poor solutions, our logistics solutions division will cover all these issues instead. Our skilled specialists and cutting-edge freight management technology can help rectify any mistakes caused by a carrier and we can take accountability to ensure that problems will be solved, and goods delivered. Our multi-carrier portal will help display B2B and B2C movements in one easily accessible location. Meanwhile, our weekly DIFOTs (Delivered in full on-time reports), operational and financial documents, and benchmarking analysis and reporting can give your business valuable insights into the logistics operations.

Transitioning your logistics management to 3PL.

Rather than diving into the deep end, Elite Logistics offers step-by-step guidance to help transition your business to a 3PL logistics operation. Our team will personally assign your business with an account representative to help introduce all our services, and we will generate a tailored approach that we believe will benefit your business in the most effective manner. After the introduction, your business will be integrated with all our cloud-based freight management software and logistics technology so you can track and manage all your products. However, our thorough reporting and logistics management analysis will continue throughout the entirety of the contract to ensure full accountability and transparency.

Custom Logistics Management

By transferring your in-house logistics to a 3^rd and 4^th party provider such as Elite Logistics you will free up time and costs for your business. Meanwhile, a dedicated logistics company with dedicated resources can provide you with a premium logistics experience. No more dealing with multiple carriers and logistics providers to deal with shipping delays or missed orders. Our team uses cutting-edge technology and integrations to produce the most efficient and smooth warehousing operations for any B2C business.

To find out more about what solutions we offer for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

The Online Marketplace – Why B2C is Fast Becoming the New Standard

The covid-19 pandemic has dramatically accelerated the growth of e-commerce and online retail. The trend looks like it will continue to stay, even as lockdowns and pandemic measures reduce. This is leading businesses to adopt a dramatic shift in their retail logistics operations, deploying direct B2C models for their goods and products.

What is a B2C retail logistics model?

B2C is an acronym for ‘Business to Consumer.’ This retail logistics model describes the movement of goods and products travelling, as the name suggests, directly to the consumer rather than to another business. An example of a B2C transaction would be the purchase of a laptop from a tech store. Usually, the retail outlet would require B2B transactions, (business to business), to get the product shipped to their establishment from their suppliers. However, many online retail platforms now allow consumers to receive the products directly from the supplier online. Bypassing the brick-and-mortar store.

An important distinction between a B2C and a B2B business is what value they provide. To be a success with a B2B model, it must be clear that the product or service you are providing creates value. Meanwhile, B2C relies on maintaining strong customer satisfaction and marketing tactics to draw in customers.

Examples of online B2C models.

Online B2C business models can be classified into a few broad categories.

Direct Sellers

Customers buy goods from an online business. This includes businesses that operate solely online via a website or are the online counterpart of an existing brick and mortar store. Example: Woolworths online.

Online intermediaries

These businesses provide an online platform to connect buyers with sellers. The site itself may not even sell products of its own, it purely provides the connectivity service. Example: eBay.

Advertising based B2C

Most social media platforms, blogs and news sites operate under this model. They provide free web content to keep users engaged but allow other businesses to place digital ads on their websites. These advertisements are used to direct consumers to their respective sites, (usually direct sellers or online intermediaries.) The website distributing the free content profits by charging a fee for businesses when they place ads on their website. Example: YouTube.

Community-based

An online platform creates a series of online communities based on shared topics, values, or interests. The site then on sells the user data, highlighting their interest in a topic to a relevant company, which can advertise directly to them through the platform or website algorithm. Example: Facebook.

Fee-based

The online businesses profit by charging a fee to their users for accessing their content. The fee could be in the form of a monthly or yearly subscription, or a one-off fee. Example: Netflix.

Why are online B2C models thriving?

So, why is B2C fast becoming the new retail logistics standard? Well, one of the most apparent reasons was covid lockdowns forcing people to purchase goods online rather than in person. However, the trend has been growing since well before then. Purchasing products online can be cheaper for customers. They don’t have to deal with the brick-and-mortar retailer that inflates the product prices to cover costs and make a profit.

E-commerce has a different set of costs integrated; storage, retail logistics, transport and 3pl warehousing. However, it is usually cheaper than renting or buying land for the store, hiring and training staff, marketing etc. This model is also very convenient for customers too. Products can be delivered directly to homes, and almost anything can be delivered from a variety of stores. Rather than travelling to five different stores to get specific items at each one; all the products can be purchased within a short timeframe with just a few clicks at the computer at home.

How do the goods get to the consumer?

Many online businesses may have no in-person store or shop front to sell their goods or products; even if their business provides tangible objects that you would usually find in retail outlets. How are they get their products to consumers? That is where retail logistics and 3pl warehousing comes in. Businesses can outsource the storage and shipping of items to a 3pl warehousing company such as Elite Logistics. They may never even have to touch the product they are selling.

By outsourcing to an established logistics company with a large warehouse, each business doesn’t have to get involved with the complicated and tricky logistics process and can share the costs with other businesses who are also utilising the services of the outsourced 3pl warehousing provider. For a fee, the logistics enterprise will transport the goods to buyers. This overall reduces the cost of business and gives e-commerce a competitive edge.

Are you looking for an established retail logistics operator for your business?

Elite Logistics Australia offers an accurate and accountable solution for all your retail logistics requirements. Our team uses cutting-edge technology and integrations to produce the most efficient and smooth warehousing operations for any B2C business.

To find out more about what solutions we offer for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

What is Pick and Pack Warehousing?

Some of the main reason businesses choose warehousing operations such as Elite Logistics Australia for their product deliveries is to optimise delivery costs and increase efficiency. Pick and pack warehousing is the process of a logistics warehouse. It involves receiving and sorting shipments of items for packaging and delivery to customers. The pick and pack process is essential for optimising costs and customer experiences for businesses.

In a warehouse, pick and pack fulfilment is the process that occurs after an order is placed. Warehouse picking is when you use a picking list to find & retrieve the proper quantities of each product from its respective location in the warehouse.

An Example of Pick and Pack Warehousing

For example, an order arrives at the warehouse in a full shipping container with items that need to be split and put away at planned warehouse locations. This order is then registered into an inventory management system so that all items can be tracked and taken care of. To maximise efficiency, orders will be ‘picked’ to be delivered with a series of other orders all with destinations along a similar route. Pickers are directed using the latest technology to confirm the right products and the correct quantity of each are scanned for a delivery cycle. The orders are then ‘packed’ into appropriate packaging and staged to a dispatch grid awaiting transportation. All packages are labelled with destination details and manifested to a transport management platform. The software provides live updates of the packages’ transport activity.

The benefits of large-scale warehousing operations

There are many advantages of warehousing. One that stands out is its ability to reduce the time it takes for your goods or materials from arriving at their destination. This means less downtime and increased productivity as you can get back on track more quickly.

Large-scale warehousing will give you access to:

Modern buildings.
Latest technology In terms of WMS and TMS. (Warehouse Management Systems and Transport Management Systems.)
Shared costs.
Learning from other clients and experienced logistics professionals.

Pick and Pack Warehousing Issues

The pick and pack process can be an enormous chunk of warehouse operational costs. Live updates are an important part of the optimisation process. It is essential that products and orders are marked accurately so that orders can be completed to full capacity. If 50 units of a product either did not arrive or have already been delivered, yet are still registered as present in the warehouse, it may generate issues for later orders that require those units.
For Example, 500 jumpers are marked as ready for delivery in the warehouse. However, inaccurate updating means there may only be 400 available. Meanwhile, an order of 500 is required for delivery at a retailer in Essendon. This order will now be delayed until an extra 100 units are delivered, adding extra cost to the operational expenditure, and delays to the retailer’s order.

Other issues that can arise include missing information or mislabeled orders during the packing process. If products have been misplaced in the warehouse or the packing has been completed incorrectly, the wrong items or number of items may be delivered or to the wrong address and so forth.

Modern pick and pack warehousing businesses should be up to date with the latest real-time inventory monitoring capabilities to deliver optimised delivery times, lower-cost orders with exceptional accuracy. This allows the warehousing business and customers to keep track of their products throughout the entire shipping process.

Why choose Pick and Pack warehousing for your business?

Businesses choose pick and pack warehousing operations such as Elite Logistics Australia because we offer accuracy and accountability of your products and merchandise throughout the delivery process, whilst also decreasing turnaround times and lowering operating costs. By utilising the best, cutting-edge operating systems and integrations, Elite Logistics Australia runs an efficient and smooth warehousing operation so your products can be delivered accurately. Our expansive warehouses have 12,000 pallet capacity across Australia and the meticulous care of our B2B and B2C specialists ensures a seamless logistics experience.

To find out more about what solutions we offer for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

what is freight management?

If you’re looking for an easy and complete way to improve your business’ logistics solutions, then you might want to consider our freight management services. Through superior, integrated technologies and partnerships with leading transport companies — elite logistics australia can help your business cut costs and time. Some of the tasks we can manage on your behalf include:

Multi-carrier despatch platforms
Carrier enquiry management.
Weekly DIFOTs.
Monthly operational and financial reports.
Annual benchmarking analysis.
Monitor timeslots.

how we improve and add value to your business

By choosing to outsource your logistics and freight management you’re freeing up your own time and that of your staff to concentrate on more important matters. Meanwhile, our industry experts can handle everything from general account management to supply chain and process improvements and cutting-edge logistics solutions such as our real-time business intelligence analytics. You will also enjoy fully integrated, enterprise-level WMSs and FMSs for a seamless digital experience.

We offer tailored freight solutions; with over 15 years of service, we offer a complete customised freight management solution. Partnering with elite logistics Australia will enable you to focus on your clients and business and allow us to take care of your domestic transport requirements. Our proven processes and technology allow us to provide elite service.

partners

Elite has an established network of carriers from the top tier transport companies to the niche local transport providers. Some of the carriers that we utilise are Toll, Startrack, TNT, Direct Freight, and Aust Post, just to name a few. Elite will work with you to find the ideal carrier in terms of price, service and technology.

Our transport services, include Same day, interstate, intrastate, air freight, B2C, B2B, DGs, special projects, carton rates pallet rates, full loads- the whole spectrum!

We pride ourselves on having leading-edge technology. Integrations & Automation are no longer a nice thing to have – it is essential.

Integrating systems is something that we enjoy. Our multiple carrier transport management systems are fully integrated with all our partner carriers, so you will enjoy technology that has all of your carriers, prices, services and data all in one environment.

elite logistics australia’s FMS (Fleet Management Software) allows transport companies to manage their drivers and control the operations of their fleet of drivers. elite logistics Australia’s enterprise Fleet Management Software utilises real-time freight tracking technology as well as:

Route planning and optimisation.
Allocations management and optimisation.
Reporting and dashboards.
Order management.
Despatch management.
GPS driver tracking/order tracking in real-time with mapping.
Digital dashboards — KPIs and DIFOT.
Delivery timestamps and notifications.
Visible on Android and IOS apps.

Information is the key to building an efficient supply chain, but it can be a hassle keeping up with all the data when you have so much on your plate. elite logistics australia employ in-house specialists who will condense and deliver daily, weekly, monthly and annual reports that show you the essential information with recommendations on how you can further improve in areas such as spending and transit routes. Some of the elements included in our reports are:

KPIs.
Daily trends.
Carrier spend and performance summaries.

If you are looking for a comprehensive and exceptional freight management solution for your company, then look no further than Elite Logistics Australia. Don’t waste time, energy and resources navigating the business of freight management in-house; when you can outsource to a professional, dedicated team. We utilise updated, cutting-edge supply chain technology, streamlined pick and pack procedures and an in-house freight fleet to provide timely, costly, and accurate deliveries to your clients. Our expansive warehouses have 12,000 pallet capacity across Australia and the meticulous care of our B2B and B2C specialists ensures a seamless experience.

To find out more about what we can do for your business, get in contact with us today by calling 1300 652 157 or filling out our online contact form.

5 points to look out for when choosing a 3PL logistics provider

Many business owners struggle to juggle between the management of their business’ logistics and the business’ main activities. Often, the best way to tackle the issue is to pick one as a focus and outsource the other. In most situations, outsourcing your logistics operations to a 3pl logistics provider is the best course of action. A strong performing 3PL provider can help you increase efficiency, control costs, and improve customer service. When deciding to outsource some or all of your logistics to a 3PL partner, there are a myriad of factors to consider. Our experts at elite logistics australia have put together 5 essential elements you need to look out for when picking a 3PL provider.

1. Logistics capabilities

Every industry has different fulfilment and distribution workflows and requirements. It is vital that the 3PL company you want to partner with have extensive experience in your specific area. While most 3PL partners cover a range of industries, you should always analyse their core competencies and capabilities to ensure the services offered can satisfy your current and future requirements.

It is also necessary to review the range of offerings provided by the 3PL company you are considering. The more coverage a single 3PL provider can offer, the more seamless your supply chain will be. A 3PL partner that offers omnichannel distribution and fulfilment is often ideal as they will likely be able to handle all aspects of your operational requirements and may be able to customise a solution to meet any specific needs. Selecting a provider that understands the nuances of your supply chain is also key to ensuring they can deliver the best experience to your customers. An effective 3PL company should also practice continuous improvement to suggest and implement best practices across your business operations to help your company stand out from the competition.

2. Good customer service

Like all other businesses, having a strong customer base is key in ensuring business growth and a healthy stream of revenue. When picking a 3PL provider, it is critical to verify that your 3PL partner is committed to prioritizing customer service, responsiveness, and communication. Having a 3PL partner that can support the level of quality your customers are accustomed to regardless of market conditions is important to ensure your brand image is well-maintained. Your 3PL provider should be committed to your growth and have the ability to positively represent your business and match your required level of professionalism.

3. Commitment to technology

Regardless of your business’ current workflow or management system, it is important that your 3PL partner can integrate not only with your existing processes but also any future ones you might have in mind. The right 3PL provider should help you leverage technology to improve and optimise your operations – ultimately improving your entire supply chain.

It is also imperative to look for 3PL partners that can offer custom software solutions and business intelligence solutions beyond the basics. This will offer you data that can provide insight and direction in making informed and timely business decisions to continuously improve business processes. Having a 3PL logistics provider equipped with a knowledgeable IT team also helps in ensuring any IT issues can be easily and quickly fixed.

Using data analytics to understand business movements and trends

4. Safety and security

An often missed characteristic when picking a 3PL provider is considering the company’s safety and security. Due to the ever-changing landscape of safety requirements, you should select a carrier with a strong safety record. Besides all the necessary safety training, compliances and certifications for its employees, a responsible 3PL logistics partner should ensure the protection of your data and business resources.

5. Adaptability and scalability

Adaptability, growth and scalability are critical considerations when choosing a 3PL provider. Ideally, you want to stay with the same provider over a long period of time. You wouldn’t want to pick one that only caters to your current business conditions and then have to switch to another quickly because your business grew faster than expected or your 3PL partner is unable to cope with changes to your business. Having to switch providers multiple times over a few short years can cost your business both time and money. If you’re looking to expand the business to other countries as well, another factor to consider is whether your 3PL provider can ship internationally, efficiently and economically. Hence, picking a partner that can adapt and scale along with your company’s growth is vital.

Are you looking for a 3PL Provider?

At elite logistics australia, we are confident in handling your complete logistics operations from 3PL warehousing to retail transport solutions. We provide end-to-end logistic solutions backed with the latest supply chain technology, a dedicated warehouse team and an in-house freight fleet to ensure a seamless and efficient experience.

Get in touch with our friendly team today by calling us on 1300 652 157 or filling out our contact form to take advantage of our trustable, personalised and comprehensive logistics management service.

from 1pl-5pl: breaking down the types of logistics providers

Offering 3pl logistics and superior 4pl logistics freight management for over 15 years, the team at elite logistics Australia are well versed in the range of logistics services available to assist businesses with elements of their supply chain including distribution, reverse logistics and warehouse storage.

While many recognise the term 3pl logistics or third party logistics, there are also other logistics management services to explore such as 1pl, 2pl, 4pl and 5pl that may be better suited for your business. Before outsourcing the freight of your products and reverse logistics to the experts in logistics and warehousing, exploring the different types of logistics will allow you to better tailor a seamless transport and storage solution for your business.

1pl: first party logistics provider

The simplest of the logistics systems, first party logistics involves only two parties with the manufacturer or distributor shipping the goods directly to the retailer or customer. This means that there are no additional businesses involved in the shipment of goods to the end destination and is best suited for smaller businesses and manufacturers.

However, once the need for freight and storage of goods increases and requires additional processing time for the employees of your business, it may be best to employ the help of trusted professionals and logistics specialists to manage the freight process.

2pl: second party logistics provider

Second party logistics involves an additional business offering the transportation of the goods from the supplier to the end destination such as the customer or retail outlet. These carrier businesses can use any kind of transportation, such as rail, road, sea or air, but they simply specialise in the movement of goods from one destination to another. As an example, it could be an airline that transports air freight internationally.

3pl: third party logistics provider

There is a range of services that fall under 3pl and a great 3pl provider will offer a blend of these services to maximise your business’ freight and storage. This can include warehousing, inventory management, pick and pack services, logistics software, and returns management while also offering a trusted in-house fleet of trucks. A major benefit of 3pl providers is the ability to also scale these services to expand business capabilities during busier periods, rather than needlessly buying assets for a business that are only needed seasonally.

As expert 3pl specialists, our team is the perfect guide to 3pl services. elite logistics Australia offer packages that blend our range of trusted couriers and scalable 3pl warehousing solutions with our integrable digital solutions that offer real-time freight updates and data.

4pl: fourth party logistics provider

Fourth party logistics differ from third party logistics as these providers manage the entire supply chain and tailor a logistics strategy for your business. The focus of a 4pl company is to optimise the entire logistics service, rather than improve one component.

As an adviser and overseer, 4pl providers measure the current key performance indicators of the logistics team, including any 3pl providers, and provide any recommendations to improve the efficiency of the logistics of the business. By offering project management of the entire logistics service, the 4pl provider acts as a single point of contact for the business regarding all logistics strategies and analytics for an additional level of communication and efficiency. An example of a 4pl logistics service provider is our logistics solutions team here at elite logistics australia

5pl: fifth party logistics provider

A new addition to the logistics industry, a 5pl provider manages a supply chain network comprised of multiple supply chains with appropriate technologies across the whole supply chain network and no limit to the number of suppliers involved.

A 5pl business manages multiple 3pl and 4pl services for its clients to create this intricate supply network, all supported by the latest information technology systems and e-commerce tools. This logistics service is best suited to large retailers that need a comprehensive service across multiple locations with multiple outsourced providers.

complete end-to-end logistics solutions

At elite logistics Australia, we specialise in providing 3pl and 4pl logistics packages for all your freight management needs and logistics goals. From 3PL warehousing to retail transport solutions, 4pl freight management we provide end-to-end logistics services across Australia, with a state-of-the-art 3pl warehouse in Victoria. Backed with the latest supply chain technology, a dedicated team, streamlined pick and pack procedures and an in-house freight fleet, our services are second to none.

Get in touch with our team today by calling 1300 652 157 or completing our online contact form.

finding the right KPI’s for your 3pl logistics operation

Managing your 3pl logistics operation is a crucial step in any business’ supply chain – but how do you know if your current strategy is maximising your business’ potential? If you’re wondering whether your processes require improvements, then having key performance indicators (KPIs) would be a great place to start. Our elite team of specialists at elite logistics Australia can guide you through finding the right KPIs for your logistics operation and answering all the questions that can accelerate your business.

what are KPI’s and how can they help?

Key performance indicators (KPIs) are a set of quantifiable measurements that help gauge your business’ performance over time to assist with strategic and operational improvements.

As logistics covers an end-to-end omnichannel process, having a natural workflow that complements all stages is crucial. Establishing KPIs for your logistics management can help your business break down each stage of the process into measurable data. This means you can continuously evaluate your business’ activity against benchmarks to identify weaknesses and opportunities. With the right data collected based on KPIs, businesses can also benefit from logistics analytics solutions and business intelligence tools to ensure long-term success.

how to set up logistics KPI’s

When it comes to setting up KPIs, a simple approach can help in identifying the necessary KPIs for your business. The quick and simple step-by-step below is a good way to start:

Define your company’s goals. A well-established goal-setting tool you can use is SMART – specific, measurable, achievable, relevant, and timely. Defining these parameters can ensure your objectives are attainable within a certain time frame.
Once goals are set, use them to identify the information you need from KPIs. For example, if your goal is to increase days for orders to be despatched, you can use this to identify the basis of your KPIs such as how often customers question wait times.
With these questions in mind, you can then break KPIs out by their stage within the supply chain. For each stage, aim to have a few distinct KPIs that can help reveal how well the business is functioning in that area.

examples of KPI’s for each stage of logistics

When measuring the effectiveness and cost of your supply chain, you will need to set up and monitor KPIs that give visibility of cross-functional activity along with those applicable to individual supply chain components.

Generally, the following areas are those where KPIs are necessary and examples of KPIs you can measure:

Order management:
- KPIs here should focus on orders and returns processing such as Shipping Time, Perfect Order (degree of accuracy to which customers’ requirements are met), and Delivered In-Full On-Time (DIFOT).
Inventory management
- This area measures the effectiveness of inventory purchasing and may also include cash flow such as Customer Backorder Rates, Inventory Turnover, and Inventory to Sales Ratios.
Supply management
- Supply KPIs are metrics that focus on how well final goods are moving through the supply chain. Examples are, Order Cycle Time, Capacity/Resource Utilization, and Productivity.
Warehousing
- This area helps with product flow from DC’s to customers being either B2B or B2C. KPIs can include Warehousing Costs and Average units picked per day
Transportation
- Management of this area governs the Transportation of goods. Example KPIs are Delivery Time, Average Days Late and Transportation Costs.

Ultimately, the right KPIs for you must be aligned with the goals and requirements of your business. There is no one-size-fits-all list of KPIs that will definitely work for your business. Having the right people evaluate your current logistics processes and your unique business requirements can help kickstart the process of finding the right KPIs for your logistics operation.

Delivery of goods from distributors to customers

tips on finding the right KPI’s

When it comes to picking the right set of KPIs suitable for your business, there are a few dos and don’ts you should be mindful of.

Dos:

Be realistic. KPIs should comprise a handful of metrics that your team can realistically measure, monitor, and react to continuously.
Make sure each KPI has an “owner”, whether that is an individual or a team. This ensures those responsible for achieving the goal are fully aware of what is expected of them.

Don’ts:

Do not have too many! Having too many KPIs and items to measure can become overwhelming and difficult to measure.
Do not overcomplicate your KPIs. The end goal of each KPI should be easy to understand and should not contradict or undermine another KPI.

do you need assistance in getting your KPI’s right?

At elite logistics Australia, our friendly team of professionals can help you and your business with your logistics operation needs such as selecting the right KPIs for the right levels of management, setting the most suitable performance targets to use with those KPIs and assessing the current performance of your logistics operations.

If you’re looking for some guidance in all things logistics, get in touch now to find out more about our extensive range of services and solutions through our enquiry form or call 1300 652 157.

what is reverse logistics?

Reverse logistics is an important (and unavoidable) part of freight management, but if performed correctly and efficiently, this process of handling the returns or recycling of a product can reduce costs and add value to your business. To begin streamlining your business’s logistics management service, it’s important to have a successful reverse logistics process in place.

reverse logistics simplified

When a product needs to be picked up from the delivery destination and returned to the seller another store, DFO or manufacturer, your business requires reverse logistics. Reverse logistics involves delivered goods travelling back through the supply chain, typically to be sold at another store, online or if it is a return to vender scenario. It encompasses any additional freight management that occurs after a product reaches the customer. This reverse movement in the supply chain involves careful management and workflow to ensure cost effectiveness without interrupting the regular movement of outbound goods.

reasons for goods to reverse through the supply chain network

Typically, returned goods invoke imagery of the customer returning faulty or unsuitable products, but there are many reasons for products to be transported back through the supply chain network. Reverse logistics offers the opportunity to recoup any lost value from the product and reduce expenses in the many instances a return is necessary.

This can occur at many stages of the supply chain and varies from industry to industry. From the supplier returning a faulty product to the manufacturer for repairs or returning outdated stock for remanufacturing and recouping raw materials. Retailers can also return unsold goods and the freight of empty packaging to the manufacturer another store to be reused or sold. Customers can also return goods in perfect condition, such as if the delivered product is the incorrect size or unsuitable for their needs, directly to the retailer for resale or faulty products to the supplier for replacement

the benefits of reverse logistics

While some freight companies and supply chains stop measuring success once the product is sold and reaches the end client, noting and tracking the life cycle of the product can offer further options for cost effectiveness and waste reduction. Categorising the reason for returns and identifying patterns can also determine issues with a product or its marketing, creating the opportunity for corrections and future savings.

Returns can also turn a customer’s disappointment in a product into a positive experience with the business, transforming a costly liability into a brand benefit. A smooth returns process can become a competitive edge that encourages repeat customers. To gain that competitive advantage and establish a cost effective and swift returns experience, a business needs efficient processes in place relating to the administration, transportation, repairs, quality assurance, or the potential disposal of returned goods.

reverse logistics process

While the details differ between industries, typically reverse logistics involves the customer contacting the support team due to an issue with the product or the product not selling. Unexpected returns can come with many operational challenges including products returning in varying conditions from damaged to unpackaged. Reverse logistics also requires the quick allotment of warehouse space for processing returns. This can be difficult to achieve for smaller, retail businesses but a seamless operation for an experienced, specialist logistics provider

Once the customer initiates the return process, the support team schedules return transportation and approves a refund or replaces the good depending on the business’s returns policy. At this stage, the customer should be encouraged to classify the reasons for the return and identify the product’s condition. This will help to determine if the product is fit for immediate resale or needs to return to the manufacturer for repair. The product is then collected and arrives at a processing warehouse where it is sorted depending on the condition and transported to the supplier, manufacturer or recycler.

complete logistics solutions

At elite logistics Australia, we specialise in providing logistics solutions for all your freight management needs. From 3PL warehousing to retail transport solutions, we provide end-to-end logistics services with our expansive warehouses with 12,000 pallet capacity across Australia. Backed with the latest supply chain technology, a dedicated warehouse team, streamlined pick and pack procedures and an in-house freight fleet, our services are second to none.