The world of logistics moves quickly. Safe logistics isn’t just a business practice, it must also be ingrained in the company culture to ensure its continued success and that it is always at the top of mind. Logistics and supply chain management relies on being on time, but logistics safety is a critical part of the equation.
We’re going to see what safety logistics requires, as well as how you can enact strategies to ensure its smooth functioning.
Understanding Safe Logistics
To understand safety in logistics industry, it’s valuable to first have a grasp on logistics itself. Logistics is defined as the movement of goods and services from its starting point to its ending point. Logistics has an impact on the company’s internal bottom line, as well as customer satisfaction.
Safety logistics, or logistics safety, refers to the various processes and practices that protect the wellbeing of individuals, assets, and operations. At the top of the list of concerns for safe logistics is people, of course. However, logistics safety also impacts various aspects of business, including:
- Company assets (protection of a company’s assets like vehicles and equipment)
- Costs (accidents, injuries, and illnesses are also expenses)
- Operational continuity (accidents and delays can disrupt the supply chain flow)
- Brand reputation (a company that deals with injuries, accidents, and delays will face blowback from customers)
The practices put in place to maintain safety in the logistics industry are often met with regulations, so risk management is key.
Challenges in Safe Logistics
The truth of the matter is that life happens. Natural disasters and accidents may be inevitable or unpreventable, but in order to minimize their effects, they must be considered and planned for in advance. By being aware of the potential situations, companies can determine how to deal with them through risk mitigation strategies, such as: avoidance, acceptance, reduction, or through transfer.
Other examples of safety challenges are more well-known and apparent, such as:
- Warehouse Safety: Warehouse safety includes taking care of equipment through proper maintenance, proper personal protective equipment (PPE), adequate training for correct lifting techniques, cleanliness, etc.
- Transportation Safety: Transportation safety, like fleet safety, involves ensuring safe driving practices and diligent maintenance schedules, etc.
- Hazardous Materials Handling: Hazardous materials handling requires risk assessment, training, and planning. All hazardous materials must be stored correctly and disposed of properly.
Strategies for Ensuring Safe Logistics
To optimize safe logistics, risk management and risk mitigation is the name of the game. Along with training and certification of personnel, here are some ways to make safe logistics a reality:
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Identify Risks
Knowing how to manage risks always begins with identifying what they may be. Keep in mind the various factors that can impact your logistics functioning, such as: transportation disruptions, supplier issues, geopolitical events, and customer demand changes, to name a few.
2. Perform Risk Assessment
Logistics professionals know that the next step is to assess the likelihood and potential impact of the risk through risk assessment. While it cannot be known with utmost certainty, it can be evaluated using a risk matrix, historical data, and forecasts.
3. Have Backup Plans
Contingency planning is essentially having a plan B. To exemplify, you may look to have backup stock in inventory or discover alternative routes should something happen to your primary routes.
4. Diversification
Just like diversifying investments is a solid strategy, so is diversifying your supply chain suppliers. In the event something happens to one, you can help to reduce the risk of a total production halt.
5. Leverage Technology
There are many technologies that are available to assist with logistics safety. For example, when it comes to transportation, you can use the Internet of Things (IoT) devices and telecommunications to monitor vehicles in real-time. Additionally, the use of speech-enabled solutions like aiOla allow for your frontline workforce to move through their critical to-do lists and workflows while working hands-free. By digitizing processes that can be completed through speech (or touch), workers can enhance their safety by keeping their eyes on the task and hands on the wheel or machinery, for example.
6. Execute Continuous Improvement
Last but not least, it’s of great value to consistently evaluate how your business is performing when it comes to safe logistics. There is always room for improvement, so by continuously evaluating strategies, the landscape, and your processes, you can find where areas are ripe for improvement.
Case Studies: Safe Logistics in Action
Successful and well-known companies know that safety is a priority, along with profitability. Let’s take a look at how some popular businesses control their logistics safety.
PepsiCo
PepsiCo sources its raw materials from farmers and suppliers globally. But, in order to ensure quality, their Global Procurement division shares its own code of conduct for suppliers. This document exists so that PepsiCo can uphold accountability on behalf of its suppliers. They also automate as many processes as possible.
“Company X”
We’re calling it “Company X” because we can’t share the name, but it’s a Fortune 50 American multinational food corporation that is one of the world’s largest processors of chicken, beef, and pork. By using aiOla, “Company X” cut their inspection time in half and sped up production time. Rather than team members being delayed when machinery needs attention, aiOla sends immediate alerts to rectify any problems in real-time, so there is less downtime and greater worker safety.
Technology and Innovations in Safe Logistics
Along with having a proactive approach to logistics safety, there are several different technologies that are enhancing business’ ability to optimize safety. These include:
- Predictive maintenance: Predictive maintenance utilizes data analysis to locate anomalies that can signal equipment defects or repairs even before failures occur.
- Blockchain: Blockchain technology provides a distributed, secure, and digital ledger to record transactions such that they cannot be altered retroactively. This can help to minimize any risk of fraud.
- GPS Tracking: GPS tracking provides real-time monitoring of vehicles, route optimization capabilities, and asset safety alerts. With these abilities, you can minimize theft risk, identify any unwanted stops on a route, and maintain oversight of cargo when it’s en route.
The Bottom Line
Supply chain management and logistics is a part of every industry. There’s no denying that safe logistics is desirable for all, so it’s always good to stay up-to-date on best practices, enlist the latest technology to assist, and continuously monitor your existing processes to optimize safety wherever possible.
If you’re interested to see aiOla in action, we’re here to discuss!
