From emerging to established economies, logistics is one of the world’s most important and largest sectors and the hundreds of billions of dollars industry has grown in the past decades. It has also been very fragmented and populated by a wide range of differing companies. Global economies cannot afford for this industry to slip in any way shape or form without complete disruption.
There are pockets of excellence, however it’s those rare opportunities that spread across geographies and sectors that need attention, and if this is done right, the industry could increase productivity by 50 to 60% which would boost the industry global spend.
Changes are needed to be done by all parties involved and government in the following key areas to achieve this.
1) Regulations:
Reshape the way we deal with regulations. It should be made easier, not necessarily less stringent.
2) Contractual Framework:
We should rewire the contractual framework of contracts that governs how project owners, project logistics management companies, contractors and sub-contractors collaborate.
3) Trangineering & Design:
By rethinking engineering and design by adopting Trangineering principles and working towards standardization. “Design to Ship” will save on project cost and increase opportunities and efficiency in infrastructural solutions to the jobsite.
4) Project Logistics Management:
By optimizing the Project Logistics Management for a better overall supply chain and adopting an optimized tender and negotiations strategy that has more collaborating involvement of all parties and would create “smart cost management”
5) On-Site Execution:
Improving on-site execution by ensuring supplies arrive in time, not too early and not too late. Using sophisticated IT solutions to achieve this
6) Technology:
Also radically increasing the use of technology were IT platforms for management and digital tools will improve the overall project logistics management and execution as well as better streamline communications.
7) Upskill Project Logistics staff:
Training and developing the workforce to ensure high quality performance across the projects. More investment on PD – Personal Development should be inspired by the industry.
In the project logistics industry, there are radical solutions waiting to be ceased. With more standardization, technological appliance that could raise productivity.
The industry has the opportunity to improve efficiency and capture new value. It will take all players to move towards this new thinking.
To find out more on how XELLZ can help your company in achieving this, please contact us for an intake consultation.
