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Factors that Contribute to the Company's Non Performance

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There can be many factors contributing to company’s non perfomance within logistics management, however research can serve as an important tool to use in order to get indepth information that concerns logistics business , both qualitative and quantitative research can be useful in this case. There also a lot of different factors that can either help in being a top achiever or can lead to the downfall of the company. Factors such as competitors , political , technology, exchange demand , infrastructure , customers interactions and facility can have a great impact on the business so its always wise to invest in research about so as to know what to expect.

Warehouse and storage faciity also has a major role to play, so looking at the infrastructure or area would help with the management cost.When it comes to the warehouse , it would be important to consider the matter of size for it would cause some missmanagement issues , should the size not be too big or too small. The size should match with the volume of goods the organisation is managing. The product also has greater importance its best to be sure of the catering space for the different types of product e.g perishable and non perishable. The climate also needs to be considered ; is the area much colder or warmer . It can make it easier to determine the type of goods to consentrate on in that particular place due to the climate . The sequensing or technique used for storing or locating the goods need to be high standard in order to avoid delays or lost items. Ii always important to think about the customers, they should be happy when receivng their services or goods. The goods should always be in a good shape and condition.

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The transportation is considered as a crucial part for the operations of the company, finding the best available with good costs would be ideal. Option two would be to buy the company’s trucks or containers instead of hirirng . There should be high technology software program such as tracking devices for managing the movement ot the trucks , any problems faced by the drivers need to be attanded to in order to promote employees interactions. Freguent training of the saff can bear good results. Manage the finances by checking the costs for each trip made and the profit to determine if the business is bringing profit.

Its better to focus on the area that brings more profit so that unessessary waste of capital can be avoided. Analysing the delivery routes would be profiable to the company , make sure the routes are short and safe that would save money too. The main center of distribution should not be far from the delivery locations the company should try to have bigger containers to avoid unnessessary trips which may not be of profit. measure the routes of the trips by means of cost , service and cycle time metrics. Effective logistic is for improving the company’s perfomance , increasing profit of the business and ensuring that the customers are satisfied with the service they are getting.

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