<- Back

Improving Supply Planning in Logistics

red brush mark
How to Improve Supply Planning in Logistics - Logistics and transportation
Steve Thompson
Steve Thompson
October 8, 2021

The future of supply planning in logistics has been paved with digital technology. Logistics firms that adopt emerging digital technologies such as AI are better positioned to prevail competitively in the future. Here's a look at how supply planning is evolving in the logistics industry thanks to IoT technology and automation.

Supply Chain Management‍

Woman talking through the phone managing a warehouse

Third-party logistics firms assist supply chain management, connecting suppliers, manufacturers, wholesalers, and retailers. Each of these supply chain links must work together to optimize supply planning in logistics. If the flow of supplies is disrupted, it can lead to a reduction in productivity among manufacturers.

One of the critical roles of a supply chain is to be a competitive force within a producer's business model. An ideal team of vendors includes backup suppliers to avoid shortages. It's advantageous for a manufacturer to periodically review its list of suppliers and evaluate the performance of each supplier.

Strong communication between these entities is essential. Different companies must work together to reach common goals. Logistics firms must champion meeting customer requirements in terms of speedy and accurate delivery of goods.

Going More Digital‍

The more supply chains integrate digital technology into their business models, the more they can accommodate vendors and customers in real-time. Digital technology allows a logistics firm to track both products and vehicles precisely at any given moment. This capability is a significant key to boosting customer satisfaction.

Logistics firms build their reputations on strategic planning that delivers a product to the consumer promptly. Digital tools help logistics analysts track down supplies faster, which influences qualitative and quantitative decisions.

The more suppliers can interact digitally in real-time, the faster shipping decisions can be made. A well-envisioned supply chain allows each supplier to have clear visibility of the network that links them together.

Improving Communication Among Suppliers‍

Assertive communication is at the core of a successful supply chain. Each supplier should quickly find out what's in another supplier's inventory in a matter of clicks. As long as each supplier keeps their inventory as updated as possible, suppliers are empowered to plan orders more effectively.

One way to strengthen communication among different organizations is to simplify it. The fewer people involved in decision-making, the faster problems can be resolved. That's why many logistics firms are investing in machine learning, which speeds up analysis.

Sophisticated Software for Placing Orders‍

Woman ordering shoes online

When sales orders for products originate online, electronic communication helps organize and speed up the delivery process. Order information can be distributed throughout the network to appropriate vendors within the same day.

Many e-commerce sites are directly linked to suppliers that can respond instantly to sales orders. Compare this agility with last century's supply chains that waited for orders to come in through the regular postal service.

The more a retailer is connected with its supply chain electronically, the more competitive it will be. Without electronic networking, retailers must rely on traditional forms of communication that can slow down shipping.

Modernization of Warehousing‍

Digital technology has made warehouse processes much more efficient in recent years. Consider how large warehouses used to require much more time to locate inventory items. The advent of IoT tracking now allows warehouse employees to find items instantly.

A modern warehouse includes a software management platform that allows workers to access in-depth data on supplies in real-time. Now there's less missing inventory and fewer financial losses in supply chains. Digital transformation has also accelerated problem-solving.

What Supply Planning Means for Consumers‍

Most consumers who order products online these days have a high expectation of fast delivery. At one time, consumers were satisfied with deliveries that took up to a month. But with the arrival of the cloud, IoT, AI, and automation, consumers now expect same-day or next-day service.

Consumers can now be very dissatisfied when shipping takes longer than a few days. This expectation has led to more significant pressure for manufacturers to outsource to logistics firms equipped with intelligent technology. Some of the most advanced logistics firms use robotics to speed up sorting packages.

Since manufacturers now prioritize customer satisfaction, they need to work with logistics firms that provide the most appropriate transportation. Air is the fastest form of delivery, whereas ground is still the most prevalent. Global businesses must rely more on air and water transportation, while local businesses can focus on trucks.

Tracking Deliveries in Real-Time‍

App that shows package tracking

IoT devices are now installed in shipping vehicles to help suppliers and customers know the delivery status in real-time. This paradigm has outdated the old problem of not knowing where an ordered product was in a supply chain for weeks. Careful moment-by-moment tracking has significantly reduced lost or stolen items in the shipping process.

If a truck in a fleet has a breakdown, headquarters can find out quickly. The company can then alert the consumer there will be a delay in the shipping. Consumers appreciate this type of transparency, which saves them from worrying about late or lost deliveries.

Another advantage to real-time delivery tracking is that a logistics firm can collect data on the efficiency of its vehicles. Analysts can study the data to determine how to cut costs and maximize routing. With the use of telematics technology, companies can evaluate the safety and skills of their truck drivers.

Improving Supply Planning in Logistics‍

The two primary components of successful logistics planning are transportation and storage. In both cases, the logistics firm is responsible for protecting the items from getting damaged. IoT sensors can now alert suppliers instantly when a product is compromised in the shipping process.

Logistics firms that use digital monitoring technology have a clear competitive edge over shippers that rely on manual tracking methods. It's also clear that logistics firms equipped with modern technology are better positioned to meet customer expectations.


Today supply planning in logistics is much easier and seamless if you invest in the right software management platforms. IoT, automation, and machine learning are all essential technologies contributing to more robust supply chains. If you’re wondering where you can get pallets in the more excellent Los Angeles and Inland Empire areas to keep products moving through the supply chain, get a pallet quote from the pros at Pallet Market.