Logistics Consultancies

In this section of the Knowledge Centre, we will discuss consultancies, covering the following:

Who they are?

What do they do?

How can they help your business?

This being Logisto, we have also compiled an extensive list of consultants in the LOGISTO Directory. Once you have reviewed this article, please visit the directory to find the business details of the leading consultants operating within Supply Chain & Logistics.

Without further ado, let us die into the important elements, starting with the basics – what services does a Logistics Consultancy perform?

Broken down to the simplest form, a consultancy will review, identify and implement (if required) the efficient of your supply chain and logistics networks and operations. Their aim is to not only improve efficiency, but to boost productivity, reducing costs and therefore increasing profitability.

Sounds good, but why can’t this be done inhouse?

This is a fair question and that one that certainly deserves further exploration. Whilst some businesses have highly qualified and experienced logistics professionals, more than capable of supporting reviews and implementing changes, they are no doubt fully engaged and won’t have the spare capacity to support this. Therefore, bringing in external support for a definitive time will allow the project to be completed more speedily. Coupled with this, bring dedicated external experts will allow the project to be supported by 1) industry experts, 2) people that have fresh and innovative ideas, gathered from extensive industry experience and 3) consultants who are not tied to the business or its culture, allowing them to progress things with less emotional attachment or concern for stepping on people’s toes!

 

 

Furthermore, there are a number of other considerations as to why businesses engage logistics consultants:

Different skill set: Whilst consultants will often have some operational experience, they will often be more analytical than a logistics operative, distilling key findings from the data captured and the subsequent analysis. Consultants will often be good communicators, able to relay their message to the all levels of the business, including at the Exec level

Experience: Professional consultants are faced with problems repeatedly and are able to draw on vast experience (in or out of the logistics industry) in order to resolve them. They will be acutely aware of what works, didn’t work and the reasoning

Support: A good consultancy will not just be one or two individuals, but will be able to lean on a whole business to support data capture, analysis, and implementation. They can easily flex resources up and down to support, as required

Now that we have covered the benefits, let us discuss areas that logistics consultants might support.

Although this will vary by logistics consultancy, you can expect them to be able to support the following areas:

Supply Chain Design, Planning, and Optimisation:

• How can we make our supply chain more efficient?
• Perhaps the company has acquired a new company and a review needs to be undertaken to ensure the supply chain remains best utilised and efficient
• Network review, redesign and implementation support
• Inventory management review and redesign
• Planning and support for outsourcing

Warehousing and Logistics Support:

• Logistics management support
• Recruitment search and selection

Warehouse Design/Planning:

• What equipment do we need in our warehouse for it to operate most effectively with our product portfolio and requirements?
• Warehouse design
• WMS and other logistics systems
• Optimisation and reengineering

Materials Handling:

• Data analysis and subsequent design
• Modeling, simulation, and redesign
• Equipment procurement

Transport Strategy & Planning:

• How can we reduce our transport costs?
• How can we plan for growth and release benefits are a result?
• Network optimisation
• Transport structure and outsourcing options

As covered above, consultants can certainly add value to your business and can support in all aspects of supply chain and logistics. From Logisto experience, they can add a lot of value, but there are a couple of key watch-outs:

• Scope – Be clear about the scope of the project, what the agreed deliverables are and the timeframe for this to be provided
• Cost – Is it a fixed cost or are you paying materials and hours. If it is the latter, is there a cap and are there deliverables linked to the hours?
• Land and expand – Be careful that some consultancies might offer low cost (loss-making) support for a project, with their real incentive being that they get their foot in the door and can then expand within the business to undertake more lucrative projects

With all of these watch out, they can easily be mitigated with some sensible questioning, discussion and negotiation but they are considerations when engaging consultancies. That said, if you are prudent, you should find the benefits of a logistics consultancy far outweigh the risks.

I am happy to explore further, do you have any good contacts?

We are glad you asked. The answer is ‘we most certainly do’. At Logisto, we pride ourselves on building the most comprehensive list of suppliers relating to logistics. In this instance, we have compiled a selection (ever-growing) of logistics consultancies, ready to answer your questions and engage on your logistics projects. Please visit the LOGISTO Directory here.

Of course, if you have any questions, or would like to reach out to the team, then please contact us.

Thank you

LOGISTO Team