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How to optimise logistics processes: survey

By: Staff Journalist, Singapore
Published: Sep 16, 2011


Global - Transport reengineering, warehouse rationalisation, and stock minimisation can help optimise logistics processes to increase revenues and reduce costs for companies in the consumer electronics sector, according to a survey commissioned by CEVA.

One of the main costs for global companies is transportation, where some firms have increased ocean transportation while reducing air shipments with the purpose of reducing cost and CO2 emissions.

Warehouses across Europe have also been reduced and merged for companies to maximise product configurations across markets.

Less inventory retention and final products in customers' and retailers' warehouses have also been observed as a way to better manage the logistical process.

With business strategies currently affected by the market's strong volatility, high inflation risk, and increasing cost of raw materials, efficient logistics play an even more essential role in maintaining the competitiveness.

The survey recommended an effective coordination throughout the supply chain where there is communication between the procurement and sales departments, so as to ensure increases in purchase and production costs are passed on.

Stock levels should also be reduced to gain more efficiency, while a guarantee of quality, quick and tailor-made services will achieve a competitive advantage over competitors.

The survey is based on market and balance sheet figures and interviews with logistics managers from 30 high-profile multinational consumer electronics, IT and telecommunications companies based in Italy.


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Companies featured:

  • CEVA Logistics

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