Productivity improvement efforts in logistics are often directed towards increased output

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In logistics, productivity improvement efforts can be directed towards increased output and reduced input or better yet, both. There are many ways to improve productivity in logistics. The following are some common areas that have shown promise:

  • Reduce inventory levels in transit
  • Reduce waiting time at checkpoints (customs)
  • Optimize transport mode selection (air vs sea vs truck vs rail)
  • Increase utilization of transport modes (e.g., full trucks)

Logistics is the management of the flow of goods from point to point. Logistics involves planning, implementing and controlling the efficient and effective movement of goods from manufacturer/producer to customer. It is also defined as the management of the entire process involved in getting a product from its place of origin to the consumer’s location.

Important Factor in Improving Productivity

The most important factor in improving productivity is to look at the overall process – not just the individual steps in a process. This provides a much better understanding of where inefficiencies lie, and how they can be eliminated.

For example, if you want to improve the efficiency of an assembly line, you need to look at what happens after the parts are received from suppliers and before they are assembled into finished products. This could include receiving checks, inventory management issues, and so on.

In other words, if your team does not have control over all aspects of the process – from beginning to end – then it will be difficult for them to increase efficiency or decrease costs.