Global multinationals generate a lot of mixed emotions from people. To some, large corporations represent all the things wrong with capitalism. However, we are going to focus on the things which give these companies operational competitiveness.
In logistics it doesn’t get bigger than the likes of DHL, UPS, FedEx, and Kuehne + Nagel. These companies have a global reach employing hundreds of thousands of employees. They have the most complicated logistics networks that move anything from an envelope to specialized heavy freight. The big question is; what do these companies do to achieve operational excellence that allows them to thrive?
Logistics giants invest heavily in technology. They then use technology to create competitive advantage. Technology allows them to automate repetitive tasks, track operational activities, control operations, foresee bottlenecks etc. Moreover, they use technology to quickly solve complex operational problems. Technology allows logistics giants to have well run logistical operations.
Logistics giants always ensure they have complete visibility of their operations. Visibility allows these businesses to grow and maintain their size without jeopardizing control of their operations. This ensures operational reliability.
Moreover, visibility allows logistics giants to generate immense cost savings. This is because visibility helps them remove inefficiencies from their operations. Efficient logistical operations allow logistics giants to be cost competitive.
Logistics giants consistently enforce accountability. Accountability allows for these logistics giants to maintain high operational standards across their entire logistics operations. Consistently enforced accountability reduces the likelihood of operational failures such as accidents, unnecessary downtime, misplaced inventory etc.
To stay competitive, small logistical operations must follow the ways of logistics giants. This can be done by adopting best practices such as technology investment into their operations. Better yet, technology that gives you visibility and control is becoming increasingly accessible to small businesses. Small businesses must take advantage of technology accessibility in order to stay competitive.