3 Lessons In Efficiency I Learned Working In Logistics

Logistics is all about problem-solving. And as in any industry, some solutions are better than others.

There’s no single way to approach an issue, this is obvious. Since the logistics industry tends to be somewhat a change-resistant, we tend to stick with solutions that have been tried and tested. In fact, nowhere else have I seen such a strong “if it ain’t broke, don’t fix it,” mentality.

But, it’s my belief that there’s always room to tweak the equation and make a system better.

This mentality is a product of my upbringing — I worked with my father in logistics at a Fortune 500 company. Learning from his example, I was always looking for more efficient ways to problem solve. Now, as the CEO of ShipChain, I take what I absorbed working with him and try to improve things for my team. Constantly.

After working in logistics for more years than I care to count, I’ve learned a few major lessons about how to build the most efficient solutions possible.

1. A Lot Can Happen With Small Adjustments.

One of the biggest problem points in the logistics industry is deciding where to locate distribution centers.

Because the highest population centers are on the coasts, with 80% of the U.S. population living east of the Rockies, deciding where to most efficiently place a warehouse is no small task. And if you pick a poorly located place, it’s a big mistake.

Probably thanks to my background in physics, I find it best to approach this type of problem as if it were an equation.

Now, it has occurred to me that not everyone loves physics as much as I do. But what’s important here is the idea behind the equation. Inputting variables, known and unknown, allows you to see what happens with small adjustments.

For example, if you know:

• Where the majority of your customers are
• How frequently you ship to different population centers
• Where a few distribution locations could potentially be

Then you’re more than ready to start inputting the variables and playing with the numbers.

If you frequently ship to California, you may want to consider locating your distribution center in Los Angeles or Sacramento — even though best practices dictate that distribution centers should be housed in middle America. Small tweaks to your equation would have told you California was your most efficient bet, so that’s where you need to go.

All things considered, these changes don’t need to be intimidating. A series of small adjustments even seems manageable and appropriate given the right context. You have to keep making small tweaks to stay ahead of the curve.

But you also have to continuously take advantage of the data you’re given.

2. Dig Into the Data You Have.

The data you’re already gathering is a readily accessible place to look for inefficiencies.

If you’re tracking:

• How far your drivers are going on average
• How quickly your internal office team accomplishes tasks
• The success rate of your deliveries

Then you already have enough to work with. This information can help you tighten your own inefficiencies.

For example, logistics companies are constantly trying to maintain the most efficient delivery routes possible. You may have heard this popular fact: UPS drivers are only allowed to make right turns. The service studied how long drivers spent waiting at left turns, and came to the conclusion it was more efficient to take routes that utilized mostly right turns.

That sounds like a silly thing to enforce, but if the data proves it’s more efficient, sometimes a little silliness can be worth it — for your customers, your company and your employees.

In the UPS example, helping drivers work more efficiently means they were able to accomplish more in the hours they worked. In turn, the drivers weren’t stuck working longer hours than necessary. They felt more productive, more valued during the workday. This is just one example of how making small adjustments can lead to big change.

In some cases, however, the data you need may not be readily available.

3. Don’t Be Afraid to Experiment.

Sometimes the most efficient solutions come from a willingness to experiment for yourself.

The spark to innovate can come from anywhere: Observing something another company is testing out in their office, or reading about all the perks and benefits startups are experimenting with these days. Regardless of where the inspiration comes from, it’s never a bad idea to try something new.

Especially if there’s a real payoff for you and your team.

While growing our staff at ShipChain, we were trying to find the best policy for sick leave. A lot of major companies had been implementing unlimited sick time, and we wondered if that could help us. But since we hadn’t implemented unlimited sick leave before, we had to try it and collect data to see what happened.

The result was staggering.

Our employees were coming to work happier, more energetic, and producing higher-quality work. They weren’t pushing themselves to come in sick, then passing it on to everyone else. We had a more efficient staff because we gave them space to be as healthy as possible.

In the long run, experimenting with ways to work more efficiently is going to keep everyone happy. Your employees will appreciate not feeling the need to spin their wheels endlessly, work will get done on time, and your customers will appreciate how seamless your delivery process is.

And all because you improved on something, even though it wasn’t broken.