Who works with logistics in the furniture industry needs to be always reinventing themselves and finding new solutions to existing challenges. The furniture delivery service must be a well-planned process that can be the difference between the success and failure of your business.
This requirement can improve your sales and generate greater customer loyalty. It also ensures greater customer satisfaction, since delays bring damage to the brand reputation and cause the loss of buyers.
In this post, we will show you the biggest challenges of this logistics model and indicate solutions for them.
Thus, your company will be able to make the right items available in the right quantity at the right time and in the right place. So, let’s go?
CHALLENGES OF DISTRIBUTION LOGISTICS
The delivery of furniture to customers needs to happen as planned to avoid damage to the organizational image. It is also necessary to optimize processes to ensure that operations are profitable.
This is why distribution is an element that helps a company’s competitiveness. In a scenario that offers no margin for error, differentiating oneself and adopting structured and detailed planning are the secrets to having a good return on investment and thus increasing consumer satisfaction.
The best kind of service for delivery furniture for your company is the “2 Person delivery service” that is a tailor-made solution designed to deliver items that are too large, heavy, fragile, or generally more difficult to be delivered by one person. When you contract Frex Logistics 2 Person Delivery Service, you can rest assured your items will be delivered undamaged by drivers trained to provide excellent customer service.
However, there are some challenges that need to be faced to ensure that distribution is really efficient.
Let’s see which these obstacles are and how we can address them:
- LONG MANUFACTURING LEAD TIME
Do you know how long it takes for each product to be ready in your company? If your answer is no, it is worth checking this question, because the longer it is, the greater the chance of generating high costs and causing problems for production.
This problem should be solved from the data and the alignment of logistics to the process. Keep in mind that you can only transport goods if they have been purchased by a customer and are ready for shipment. This is even more important if the products are frequent replacement items.
Calculate exactly how long it will take the goods to reach your company. Factor in a variety of factors, for example, manufacturing lead time, distance, and processing time. Remember that every product has a specific logistics cost for its maintenance.
The ideal is to invest in products with more output since those with less turnover usually take up a lot of space and increase storage costs.
- TRANSPORT MANAGEMENT
This is the stage that adds a high cost to the product. Therefore, managing it properly is essential to make better decisions and reduce costs.
It is recommended to decide who will transport raw materials and products. The first step is to think about whether it is ideal to outsource or to have your company carry out this activity.
In case you choose to outsource, you should check if the product handling will be correct. The items must be delivered intact and on time – and none of these aspects can be left aside.
After all, there is no point in having an intact product if it is delivered after the deadline or if it is delivered on time with damage (for example the furniture, or part of it, is damaged during transport).
When it comes down to it, outsourcing is a good business. This is because your company does not need to have various expenses for the maintenance of its own fleet, that is, insurance, taxes, fuel, expenses with possible fines and accidents, etc. Another advantage is not having to bear these expenses in periods of low demand.
- ROUTES OF DELIVERIES
Distribution is directly related to deliveries, and their routing ensures cost reduction. This is a challenge because if it is badly managed, transport resources will not be well used.
Due to the large number of routes we take every day to deliver to our customers, we have the knowledge to identify the best routes (that combine quality, time, and distance) in order to save fuel, maintenance costs for the vehicles and thus offer a more competitive price to our customers.
There are still other more complete solutions, which allow, for example, to control the time of delivery to the client, identify the difficulties of the load and make new programming due to unforeseen events (accidents, vehicle breakdown, traffic jams, etc.).
The main idea is to have safety and economy in all the distribution phases. The advantages are:
– Control of the delivery processes;
– Monitoring of all the stages;
– Reduction in the technical assistance index;
– Speed in volume replacement;
– Brand preservation.
- MONITORING OF INDICATORS
Measuring logistics performance is essential to adjust when necessary. KPIs (key performance indicators) must be relevant, that is, reflect the distributors’ goal and strategy.
Among the main indicators in the distribution industry, we can consider these to be the most important to always be measure: returns, time in transit, punctuality of deliveries, and accuracy of transport notes. They help to analyze the success of processes and strategies.
- VEHICLE TRACKING
A common problem is delivery delays, which can be reduced by vehicle tracking. A simple way to do this is by the tracking device installed in the vehicle. This global positioning system allows vehicles to exchange messages with their operational bases, which ensures more secretive and efficient communication.
Another option is radio frequency tags that identify a vehicle or cargo and transmit the information via radio waves. Thus, the truck is directed for loading and unloading and the operation becomes faster.
- DEMAND FORECASTING
This seems to be a very complex and difficult task, but it can be carried out. The projection can be made based on the company’s sales history. Identify seasonality periods, promotions that worked out well, among other situations that impacted the commercialization of items in your furniture shop.
From that, it is possible to establish strategies that enable the increase in sales and still outline tactics to ensure efficient distribution. For example: in a period of rising furniture purchases, you can ally the routing to the filling of the furniture in the truck in an appropriate way.
This way, employees deliver the furniture on time, customers are satisfied, and you ensure efficient distribution.
Now that you know the 6 biggest challenges of distribution logistics in the furniture industry, how about reading other relevant content from our news page?
Do you need a Logistics Company for your furniture delivery service needs? You can always count on the experts at Frex Logistics to always find the best transport solutions for your company.
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