Every good logistics company should have set of objectives and goals to reach!
Part of the planning process of every logistics company is setting up some business goals and objectives that need to be accomplished throughout the year.
These goals and objectives might pertain to the logistics business as a whole, or they might refer to different departments, customers, employees, and even marketing efforts.
I am sure you will all agree with me that the first and main goal of every logistics company is to get things from point A to B in a timely, efficient and cost effective manner!
However, that’s the first goal, but we all know what all it takes to get there! So yes, there are hundred’s other goals to be reached, in order to accomplish the first and main goal!
Every logistic company has main focus and activity on detailed coordination of the complex operation, which involves many people, facilities, or supplies.
There are some companies that use an internal logistics department to manage the supply chain, or with other words they use in-house logistics, while other organizations rely on third party logistics businesses known also as 3PL providers.
Regardless which kind of a logistics company you run, you can be freight forwarder, customs broker or intermediary, on the end of the day you are still doing logistics! Each and every day!
This process recognizes there is a chain of participants, each sharing many common requirements regarding accuracy of information, timeliness of information availability, integrity of transaction and security, and much more.
With that said, we cannot miss the importance of having a good plan including goals and objectives to lead you through the journey.
The Management Goals and Objectives
Regardless which kind (small or big) of logistic company you run, the goals and objectives of any management in general, is to reduce operational expenses.
In logistics you need to do things as fast, cheap, and consistently as possible. With that in mind you should know that unless the milestones of the goals are clearly defined in objective measures and completely shared by all participants, the supply chain might be weakened.
Objectives may vary from chain to chain. It will all depend on how well the participant goals are mutually aligned, but usually consider overall profit vs. customer satisfaction.
The supply chain measurements can cover many areas including:
- Customer Service.
Usually they focus on some subset of the chain’s application in business such as:
- Third Party Fulfillment;
- Distribution Facility Performance.
As a whole, every logistic company needs to work hard on creating and fulfilling goals and objectives, because that is the key to successful business.
Logistics Company -Goals and Objectives
As I mention earlier, there is no successful business without good set of goals and objectives. Successful logistics businesses are based on both goals and objectives, because they clarify the purpose of the business and help identify necessary actions.
The goals in your logistics business are the general statements of the desired achievements, while the objectives are the specific steps and actions that you need to take in order to reach the goals.
Have in mind that the goals as well as the objectives should be specific and measurable.
Regardless if your goals are in the area of higher profitability, better customer care and service or growth, you should have and a range of objectives that you will use in order to meet those goals.
Those two things are mutually connected, and you cannot reach the expected final results without synchronized goals and objectives!
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In order to meet your logistics business goals, you should define them precisely and then create a series of specific objectives to reach them.
In the logistics world there is a lot more involved then just moving goods from point A to point B. When you take in consideration all the legal issues, insurances, and what not, you will really feel lost!
On top of all that you have and all the government agencies breading down your neck like:
- Department of Transportation (DOT);
- Federal Motor Carrier Safety Administration (FMCSA);
- National Highway Traffic Safety Administration (NHTSA);
- Occupational Safety and Health Administration (OSHA);
- United States Environmental Protection Agency (EPA);
- United States Department of Labor (DOL);
- Commercial Vehicle Safety Alliance (CVSA).
Most Common Logistics Company Goals And Objectives
As an entrepreneur, you are concerned with every aspect of your business. You need to have some clear goals and objectives in mind, in order to have a successful business!
If you have a comprehensive list of business goals and objectives, you will create the guidelines that will present the foundation for your logistics company planning.
Now when we make clear that goals and objectives are crucial to every logistics company success, let’s see what are some of the most common logistics’ goals and objectives.
One of the long-term goals and objectives for every logistics company is reducing costs.
If a logistics company wants to increase the profit that they earn from each and every client, then they should look into reducing the cost for transport and warehouse materials.
A good example here is reducing energy costs. This is one area of logistics that adds to the cost of each shipment.
Objectives such as maximizing transportation routes will result in a lower energy cost. Furthermore, by consolidating shipments, you can also help in reducing the energy costs to your logistics company.
This way, you will not only increase the profit of your logistics company, but you can be more flexible in pricing and pass your cost savings to the customer.
Next common business goal (especially logistics company goal) is to run a profitable operation. In translation, typically that means that you need to increase revenue and at same time limit expenses.