Retail surgery: How do I get the best value from my logistics supply chain?

Mike Danby, chief executive at Advanced Supply Chain, says the key focus for retailers should be efficiency and effectiveness.

Retailers need to understand where money and time are being invested and if they are being spent wisely.

Danby says: “Always consider a single provider for all movements of your product as this will provide you with the best tracking and audit trail information.

“It will make you more important to the provider, and it will reduce the amount of profit costed into the operation as there is only one company working for you, not three or four.”

He advises looking at the time it takes to move products from A to Z, then asking if the products are moving via the most effective route, and whether they are being moved at the right times.

Possible improvements retailers could make include consolidation of shipments, maximising unused trailer space and packaging garments in a way that enables a higher volume of goods to be packed per trailer.

Danby adds: “Retailers should then focus on the accuracy of the supply chain. How many mistakes are being made? Are the right goods getting to the right places at the right time, and how many times are they being handled?”

Danby says it is worth researching the market and looking at supply chains, not just in retail but across the board.

“You need to know if your logistics provider is an innovator and if they’re using the latest technologies and tactics to optimise your supply chain,” he says.