Produce retailers have a lot of things to consider in their logistics systems, especially given the time-sensitive nature of most of their goods. Although there is no one-size-fits-all solution for increased profitability, here we offer you 10 suggestions which may improve your produce logistics system and supply chain.
1. Be more transparent
When it comes to things such as mistakes and waste, these things should be noted rather than swept under the rug, per se. Do not allow goods to disappear or be forgotten about as part of the logistics process – find out what happens to them and learn how to curb these mistakes.
2. Standardize things
Standardizing your logistics processes on your system is essential for efficiency, as it saves on time and money in the long run, making the logistics process much easier for your employees.
3. Use insights
Take advantage of cutting-edge data analytics tools which provide you with in-depth insights about your produce. Real-time data allows you to analyze the efficiency of your logistics system, identifying areas which need improvement and making wise decisions which are backed up by quantified information.
4. Boost cost awareness
Although the process cannot be carried out for free, it is helpful to notify key players in your supply chain about what things cost your company the most money. This allows managers and stakeholders throughout your hierarchy to suggest/make changes based on financial awareness, thus saving you money in the long run.
5. Use modern inventory management
Modern ERP software will come with inventory management features which allow you to track your inventory levels in real time, making informed purchase decisions as a result. These systems are also infinitely scalable, making them useful compared to old-school spreadsheets.
6. Consider automatic purchasing
Modern ERP systems can also come equipped with Automatic Purchasing tools, meaning that you can automatically purchase more produce as soon as your stock falls below a predesignated level.
7. Optimize your accounting
There’s no point in wasting time on unnecessary salaries and working hours when automation can take care of it! Use an ERP system to streamline your accounting system and use Electronic Data Interchange (EDI) and Electronic Funds Transfers (EFT) to reduce payment processing times and other bottlenecks.
8. Try using Just-in-time (JIT)
JIT can work incredibly well with ERP systems, allowing you to reduce your overheads and work at optimal inventory levels, something which is important for perishable goods.
9. Form good relationships
Although it may be tempting to jump around from business partner to business partner, forming strong relationships with reliable couriers allows you to ensure timely deliveries and cost-effective processes.
10. Keep up with the latest trends
Retailers using legacy systems will find themselves lagging behind their competitors after a while, lacking efficiency and losing profits year after year. Be sure to remain up-to-date with the latest solutions and trends in logistics and ERP systems, ensuring that you get your produce from the farm to your shelves as quickly and as efficiently as possible.