Home Business How Modern Supply Chain Businesses Benefit from Capacity Planning?

How Modern Supply Chain Businesses Benefit from Capacity Planning?

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Capacity planning helps managers to utilise their resources in the supply chain and logistics in an appropriate manner. There are often three strategies managers use for capacity planning in the same day courier UK organisations such as the lag strategy, lead strategy, and match strategy. Beyond the capacity planning and initial business planning, these strategies if applied correctly can provide a lot of benefit to your multidrug courier UK Company to achieve competitive advantage.

Therefore, in order to choose the right strategy, as an owner of a European delivery and pickup service, you need to the right one according to the type of your business in the United Kingdom. Assume that the level of risk is high due to the global economic downturn and the pandemic, let us explain these strategies to you briefly and help you to figure out how modern capacity planning can benefit your next day courier UK Company.

  1. Lag Strategy

Since the demand of same day courier UK services as well as next day courier UK firms has surged in the middle of the pandemic, managers need to use their resources wisely according to the rising demand of these services. Customers are eager to receive their packages on time on the same day or the next day. When you consider using the lag strategy for your capacity planning of the business, it means that you focus mainly on the costs and do anything to keep the costs low.

However, there is a potential disadvantage of this lag strategy when you try to keep the warehouse and logistics costs as low as possible. For example, it can create a lag in the delivery of products or services to the customers which are where this name is best suited for this strategy. For instance during the pandemic, customers prefer to stay home and receive their orders on the same day. Now, when you fail to deliver the orders on the same day, not only the customers could get frustrated but will turn to new client for a dramatic turnaround in delivery speed.

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Using the lag strategy for capacity planning can surely improve your chances of preventing these delays in shipments and help to make customers happy.

  • Lead Strategy

When we consider lead strategy to enhance ROIs of your same day courier UK services organisation that means we have enough resources to meet the present demand of the customers. However, when you choose lead strategy in place of lag strategy, there is an obvious disadvantage in it. For instance, if you hire new employees in the inventory department and they do not prepare the orders that you were expecting, you can not only lose the trust of your clients but will also pay those employees who do not work efficiently.

There is a major advantage of using the lead strategy as well. For instance, if you feel a sudden rise in the orders, you are more likely to keep many or all of your customers happy with this strategy and meet the due dates.

  • Match Strategy

Match strategy is the middle method that works between the above two strategies described for capacity planning. In your European delivery and pickup services in the UK, using the match strategy, you can do strategic capacity planning more frequently. That means your managers are monitoring the current demand more closely and predict the projected demand more accurately.

This information can be highly production and useful for the managers of your economy parcel delivery company in the UK because they can use it to meet the e increments in demand. This strategy also has another benefit because it is very flexible with a less risk than the lead strategy. However, it has more ability to scale your door to door UK Courier Company compared to lead strategy.

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The Benefits of Capacity Planning Using Three Strategies

 Since we have discussed in detail what are the three important capacity planning strategies for large parcel delivery UK services and how they can help owners to gain maximum competitive advantage, it is important to know that capacity planning helps managers to make customers happy and more satisfied in the long run.

How does capacity planning helps to keep your customers happier? This type of strategic planning is the name of the game for the modern door to door UK delivery and pickup services because it will help owners to meet due dates, effectively scales their businesses, and decrees their costs.

Moreover, with the right strategy implemented according to the capacity planning, businesses can reduce stock out costs and customers will not have to wait for their orders. The Internet and tools have made it all possible for the customers to search for products and logistics services elsewhere easily if you do not provide the same day delivery. Hence, capacity planning plays a key role in your business planning a promotion in the logistics industry.

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