In logistics, choosing the right partner pays off in many ways. Together with a partner, it is possible to create comprehensive logistics solutions that improve the efficiency, predictability, flexibility and customer experience of the entire supply chain. At their best, logistics become the focus of the company’s business development.
Article summary:
Logistics is shifting from operational execution to strategic partnership, focusing on improving processes, data, service levels and supply chain transparency together with the customer.
The right partner enables flexible service models, cost efficiency and value‑adding activities such as light assembly, finishing and installations.
Technology, automation and data bring significant benefits, but development must start from business needs and succeeds best through collaboration between the customer, logistics partner and technology providers.
The traditional idea of logistics as smooth transport and efficient warehousing is still an essential part of logistics operations. Today, however, logistics also make much more possible. Today, logistics operators increasingly more often partner with companies and helps them to develop the entire supply chain together with the customer.
The partner does not only implement individual performances, but participates in the development of processes, resources, the use of space, data and the service level. Thus, the role of logistics shifts from operational performance towards strategic partnership.
Services according to the customer’s needs
With the right partner, logistics services can be arranged flexibly either at the customer’s own premises or at the logistics partner’s premises, or as a combination of the two. For many companies, the most effective solution is a model where the functions critical to production are kept close to their own operations and other activities are concentrated in the partner’s premises.
At the customer’s premises, the logistics partner may be responsible for material flows, for example, meaning the processing of incoming goods, packaging and shipping of finished products, and the daily management of processes.
“One of the key objectives is that the customer’s own personnel can focus on their core operations,” says Markku Viljanen from Posti’s warehousing and logistics services.
At the same time, fixed costs can be made more flexible. When logistics resources are measured as needed, costs can better reflect actual activities and volumes.
”An operator like Posti can offer a huge amount of support for logistics development. For example, we can help a lot in the development of in-house logistics processes,” says Viljanen.
In addition, increasingly more work in logistics can be carried out at the hub of the material flow instead of at the customer’s production plant, which creates added value for the customer even before the product reaches the end user. Such activities may include small assembly, installation and finishing products.
Transparency at the core of improving efficiency
Making logistics processes more transparent is one of the most important objectives of co-development. Companies benefit from an increasingly proactive situational picture of the supply chain. Real-time information helps to detect disruptions in time, monitor the service level and react to changes quickly.
When the information about material flows, capacity, deliveries and deviations is visible, decisions can be made better and faster.
A shared, open view of objectives, indicators and development projects also promotes the transformation of cooperation between the customer and the logistics partner into continuous development instead of individual improvements.
Technology as a driver of development
Technology, data and automation are rapidly changing logistics, but they will only become valuable once they meet real needs. Working with a partner makes it possible to use new technologies without making major investments.
For example, machine vision and video analytics can be used to monitor the fill rate of racks, free floor space or movement of pallets. Artifical intelligence can automate observations, improve safety by identifying deviations, and help identify materials and direct them to the right processes. This frees up the personnel’s working time for other activities.
In addition, the deployment of robotics often prompts a review of the company’s common practices. In order for automation to work efficiently, processes, data and procedures must be in order. At its best, the deployment of robotics can accelerate a broader development as the company has to clarify its operations and make them more predictable.
Development starts with business needs
The needs of different industries vary a lot, which means is always a good idea to start development work with business needs and getting the basics right, not with the technology itself.
In the future, technology will support work in many ways, but people will still be responsible for decision-making, responding and development.
This is why the development of logistics through partnership pays off: the best results are achieved in cooperation between the customer, the logistics partner and the technology partners.
Listen to Posti’s Posticast podcast for more information on the subject.
Posticast discusses the transformation of logistics and its impact on the competitiveness of companies. The episodes cover the twin transition, the growth of e-commerce, the opportunities of the circular economy, the development of transport methods and logistics centers, and security of supply in a changing world. Posticast is hosted by journalist Anna Perho, and the guests include top experts in the logistics sector from Posti and other pioneering companies.