Building Good Logistic Practices Can Kickstart The Global Trade Recovery

1. Building Good Logistic Practices Can Kickstart The Global Trade Recovery The concept of logistics doesn't just revolve around determining transportation and warehousing needs. Instead, it can be defined as a combination of principals, approaches, and leading drivers to further ensure effective collaboration between business agenda, and policies across the entire supply chain. In terms of international trade finance, successful logistic practices can help promote supply chain performance by improving supply chain management as a whole. But the global pandemic of Covid-19, further combined with worldwide lockdowns, caused restricted regulations on the movement of cargo at a time when it was extremely necessary. Even critical cargo, for example, medical equipment, medicine, and food were put on hold. In this scenario, implementing a good logistic strategy in the organization can help the supply chain leaders pace up with the supply chain changes. A good logistic strategy helps businesses identify how these critical changes will have negative outcomes for the company so that they can be prepared with the essential organizational or functional changes.

2. First Question, What Are The Critical Components Of Logistics Strategy? They are categorized into four levels of logistic operations. And to get any potential cost benefits, it is essential to evaluate all the components of the operations. Here, they are as follows: ● Transportation - Evaluation of current transportation strategies. ● Outsourcing - Figure out the involved outsourcing parties in the logistic function. Try to find out if further outsourcing with a third-party logistic company would benefit the service or not. ● Logistic Systems - Are your current logistic systems relevant for optimizing the data essential for implementing logistic strategy? ● Competitors - Find out your competitors’ strategies and make changes in your company’s policies accordingly to improve service levels. ● Strategy Review - Ensure all your logistics and business goals are aligned with each other. How To Create An Effective Logistic Strategy? The supply chain constantly changes that can further lead to several disruptions in the overall business operations, including poor on-time delivery of ordered goods, shortage or unavailability of products, components, and suppliers, etc. In this blog, we are sharing some key strategies for managing global logistics. Here they are as follows: 1.Bring More Connectivity - The global supply chain leaders should focus on designing an effective logistic strategy that can further connect them to the suppliers, corporations, and manufacturers situated in several parts of the world. There should be a technology that links them in a way that offers consistency, boosts visibility, and organizes the process to survive challenges in real-time. Recommended Read: Proven Ways To Reduce Payment Risk In Foreign Trade 2. Ease In Air Cargo Movement - Since Covid-19 puts passenger movement on a temporary halt, the legal authorities should start working on a more streamlined, and free

3. movement of cargo flights. Various express delivery services were compelled to operate overcapacity to execute shipments and were further hindered by regulations, airport closures, and other legal limitations. Obstructing the free movement of air cargo across the world is not only putting adverse effects on the economic recovery but also worsening the movement of essential goods and supplies. 3. Apply A Configurable Solution - The supply chain leaders are required to apply a configurable solution that can cater to the several needs of their supply chain rather than one that is forced fit. In simple words, they need to figure out a solution that is flexible towards adapting to the company's changing requirements. 4. Standard Safety Protocols For Air Cargo Crews And Workers - In the current situation, the logistic industry is lacking standardized health and other regulations that are further leading to complex obstacles to the free movement of air cargo such as delayed flight operations, etc. This calls for a more globally standardized approach to overtime time crunch. For example, airport operations should be kept open for all cargo traffic along with isolated hotels for crews to rest without entering the community. 5. Get Accurate Data -Using accurate and suitable data will help supply chain leaders make informed decisions to cater to the organizational agenda. Here, business leaders should implement automated systems that offer appropriate data about the entire supply chain management.

4. 6. Try New Technologies - To cope with the situation and to survive in the current scenario, global traders need to incorporate advanced innovations. For example, cloud technology, track and trace technology, or voice technology in the logistic processes. Always be aware of the new upcoming technology trends such as 3D Printing that can be a game-changer in the future. Recommended Read: How Fintech Is Driving Financial Growth To SMEs To Survive From Pandemic? 7. Access The Right Global Logistic Operating Model - At present, many companies are assessing the right logistic operating models after evaluating their relevance whether to outsource or keep in-house. Some of the determining factors are as follows: ● Is developing in-house capabilities in terms of logistic network design, sourcing, and management, transportation capacity, or shipment planning worth it? ● Is there any requirement of outsourcing some of the logistic execution operations of the companies? For example, Pre-booking or booking confirmation in ocean transportation, managing custom clearance, and warehousing & storage, etc. 8. Good Relations With Logistics Service Providers - Due to the global transportation, capacity complexities, and immense requirement of logistics service providers (LSPs) to ensure high levels of service, many companies are strengthening their relationships with the LSPs. Various LSPs-friendly programs are being created to consider more effective rate negotiation, & bidding processes. On the other hand, to organize customs clearance processes, leading companies are utilizing custom brokers and other third parties. 9. Effective Flow Of Goods Through Advanced Routing And Consolidation - Companies with larger shipment volumes in various regions are leveraging global transportation planning processes. Earlier, there were fixed business policies for determining a route for specific regions and destinations. But to maximize container utilization and mitigate transportation capacity issues, a more dynamic process is being used. Now they can make ports, and inland modes decisions and discover consolidation opportunities across global shipment volumes. The future of logistics has a great scope and these above-mentioned steps will surely help supply chain managers to leverage the benefits in this sector.