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How To Increase The Productivity & Profitability Of Your Distribution Business

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Every successful business owner or manager knows and understands the supreme importance of the connection between productivity and profitability.

After the devastation and disruption that the worldwide coronavirus pandemic caused businesses across the length and breadth of the United States and the world, it is now more crucial than ever before to focus one’s efforts on increasing your company’s cash flow.

With that being said, continue reading to learn how to increase the productivity and, therefore, the profitability of your distribution business

Shorten Delivery Times

One of the most fundamental ways to increase the productivity and profitability of your distribution business is to attempt to shorten the delivery times of the product to the customer as much as feasibly possible.

Ideally, as soon as the customer has placed the order, your employee will log the order onto the system and use online synchronization of data. The server and the mobile terminal will be in direct communication as soon as the visit to the customer has been completed.

This means that back in the warehouse, merchandise and products will be picked and packaged in order, according to the chronological log of the customers. Additionally, this faster process of getting the order to your customer will increase recorded customer satisfaction and, therefore, will increase your levels of customer service.

Thorough Maintenance Of Conveyor System

Another exceedingly effective way of increasing productivity is to ensure that at least one person conducts full and thorough walkarounds of your conveyor system at the beginning of every shift.

This way, any strange noises can be identified and subsequently investigated. Any litter, dust, or debris can be removed, and any faulty elements and even small conveyor parts within the whole system can be either replaced or removed. This quick action will result in the prevention of lengthy and financially costly stoppages in production and distribution and will therefore increase both the productivity and profitability of your company. It will also protect the safety of your staff and operators should a machine break down.

Delegation

The connotations of the word ‘delegation’ are often wrongly confined to the distribution of different tasks to employees sitting under you on the business hierarchical chain.

Growth within management relies on the power to effectively and efficiently delegate, a skill that is easy to understand yet much more difficult to master. Simply put, delegation and outsourcing mean that there are more employees working on a specific task or order. Therefore, such a task is completed substantially quicker, increasing productivity levels.

Extra Employee Training

Alongside the mandatory certifications that every member of your workforce will have undergone prior to starting work on the shop or warehouse floor, there is also significant merit and benefit to upping their qualification statuses and enrolling them in extra courses.

For example, an employee whose sole duty is to work directly in the packaging department of your factory process could still learn all about working in another stage of the process, which will provide a myriad of advantages to the company as a whole.

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