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networks to be more flexible and have alternatives at the ready if there are , for example , road blockages or a driver strike . Dynamic transportation networks also allow businesses to take advantage of the fastest mode of transport for a given route rather than being stuck with an overly rigid approach that leaves customers waiting .
■ Automation : When we think of “ optimal performance ,” efficiency is one of the first words that come to mind and little exemplifies that more than the use of automation technology . Automated warehouse sorting systems , logistics scheduling , and loading plans can all be used to enhance the speed and agility of distribution networks .
■ Inventory visibility : Another aspect of optimizing the performance of distribution networks is better inventory visibility and management through the use of smart technology . As we ’ ll explore in a later section , there are plenty of tools that have emerged that make it easier for businesses to see exactly where their inventory is at all times so that they can make better decisions in the face of market shifts .
Adapting to customer demands with agile logistics strategies
Global retail giants like Nike and Zara are both famed for their highly agile logistics strategies . Nike uses a mix of data analytics and logistics optimization to cut down on how long it takes for sneakers to get from the factory to the delivery vehicle , and in doing so , has reduced customer waiting time and been able to keep up with demand better than some competitors .
“ Extreme agility ” has also put Zara ahead . They ’ ve decentralized their manufacturing over the last two decades and become more data-driven in their decisions to make sure that they ’ re always the first to get trending items to customers .
So much of business these days is being able to give a customer what they need before someone else does . The more flexible a business ’ logistics approach is , the better positioned they are to respond to customer demands quickly and enhance satisfaction in the process .
Implementing advanced technologies for smarter supply chains
One of the defining factors of an agile logistics strategy is the use of information technology . Here are some of the advanced technologies being used to build smarter supply chains and enhance distribution networks :
■ Transportation management systems ( TMS ): TMS are software platforms designed to facilitate the planning , execution , and optimization of the movement of goods . TMS provide enhanced visibility to shipments and supply chain data , empowering logistics managers with real-time business intelligence .
■ Integration software and platforms : Integrating your TMS with your ERP , warehouse management system ( WMS ), inventory management system ( IMS ), real-time transportation visibility platform ( RTTVP ), and other business operations such as accounting , inventory management , and customer service can help you create a best-in-class logistics tech ecosystem to support your business with enhanced visibility , streamlined operations , reduced manual errors , and improved sharing of information with stakeholders and carriers along the supply chain .
■ GPS tracking : Accurate GPS tracking devices on transport vehicles and cargo can help map out entire distribution networks and build more agile strategies . The data from GPS tracking can be used to build predictive transportation scheduling models and allow for route optimization and greater responsiveness
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