Courier as a component of a Successful Business

Trends in global economic development lead to increased requirements for the efficiency of enterprises, associated with the intensification of their product range policy, shortening the life cycle of goods, complicating demand forecasting, increasing warehousing and transportation costs. Therefore, rational planning of production and sales, which are focused on meeting demand with minimal costs, strengthening coordination between interrelated activities is becoming increasingly important. Solving these problems requires a developed courier, the presence of competent courier management. 

The courier approach to business management is becoming a major component of its competitiveness. Western experts in the field of courier believe that companies that have achieved world standards in courier, able to gain a competitive advantage through continuous improvement of customer service. This is the path followed by all developed countries and leading companies in the world.

Courier contributes to the effective development of the enterprise through the choice of appropriate courier strategy; formation of an adequate courier system; rational organization of the courier process at the enterprise; solving problems of inter-functional and inter-organizational coordination and integration.

It is already practically proved that the economic effect from the application of the courier approach to the management of resource flows contains the following components:

– reduction of stocks along the entire courier flow (from 30 to 70%) due to the high degree of coordination of actions of participants in courier processes, increasing the reliability of supplies, rational distribution of stocks, etc .;

– reduction of time of passage of goods on a logistic chain. Thus, in Western countries, only 2% to 5% of the total time is spent directly on the production of goods, more than 95% of the time is used to pass it through supply channels (transportation and storage). Reducing this component will accelerate capital turnover, improve customer service;

– reduction of transport costs (by 30-50%) by optimizing routes and traffic schedules;

– reduction of manual labor costs for cargo operations due to the use of the same type of mechanization, the same packaging, similar technological methods of cargo processing in all parts of the courier chain.

The total economic effect of the use of logistics, as a rule, exceeds the sum of the effects of improving these indicators due to the integrative properties of logistics systems.

The experience of logistics is evidenced by foreign experience. According to the Logistics Association and the National Council for the Management of Physical Distribution of the United States, the introduction of a logistics approach makes it possible to reduce production costs by 10-30% and reduce inventories by 30-70%.

In some foreign firms, logistics costs usually range from 5-35% of sales depending on the type of business, geographical scale, and the ratio of weight and price characteristics of materials and products. Logistics costs are usually one of the most important costs of doing business.

The concept of logistics is increasingly used in the upper echelons of corporate governance, is the basis of the business strategy of firms, and is used as a tool in competition. Today it is difficult to imagine full-fledged production or marketing without logistical support. Most consumers in the developed world have long taken the high quality of logistics for granted.

In world practice, there are four approaches to the organization of courier activities of the enterprise. 

The first – the company independently creates a logistics department, whose functions are to carry out all processes of logistics activities from the purchase of raw materials to sales. Using this approach, the warehouses of the enterprise are built, a fleet is created, a large staff is formed, ie it is a completely autonomous approach to the implementation of logistics activities. 

The second approach involves the transfer of part of the logistics functions to third parties. For example, warehousing or certain types of transportation. 

The third approach is the outsourcing of all logistics functions, in particular the management of raw material supplies and shipment of products. 

The fourth approach is to work closely with a logistics provider that not only provides delivery.

Thus, the efficiency of the domestic economy largely depends on the level of development of logistics infrastructure, logistics outsourcing, and the degree of compliance of the performed logistics functions and operations with international standards and norms. Compliance of performed logistics functions with international standards will help increase the competitiveness of products, create favorable conditions for its export, integrate domestic enterprises into the world market, and more.