When running a business, the top priority is sales. Yes, you need the right products, effective advertising and an effective workforce. However, you have no money without customers buying your products and services.
For customers to receive their goods, you must get them from a manufacturer to their home, with all the logistical steps in between. This task can be daunting, and we must work together for fast and effective supply chain delivery.
These are five tips for logistics and supply chain management. Implement all of them into your operation and see how your supply chain functions better. Ultimately, you will have a stronger workforce and satisfied customers, spreading the word about their experience purchasing from you.
Are you dropping the ball on your logistical operations? You can’t be an expert at everything, but with some guidance, you can be proficient at it, that’s for sure. To help you in your business endeavours, here are five tips for logistics and supply chain management.
Use a Third Party Logistics Provider
You want to succeed, and as your business grows, so do your logistical needs. Taking care of this in-house is tough; sometimes, your time and staff are better suited to focusing on your core competencies. Fortunately, a reliable third party logistics provider can handle your supply chain needs.
These companies only do logistics and are focused on that task. They have the infrastructure, team members, and global network to get your products to customers effectively, regardless of where they are on the planet. 3PL providers offer one-stop solutions for your supply chain and can handle everything, including:
- Order fulfilment
They can be integrated into your warehousing and transportation procedures to fill gaps in your supply chain. They can also handle everything for you, including returns. As your business expands, your 3PL company can meet those needs to ensure your customers get the best experience dealing with you as possible. This is how businesses grow and prosper.
Develop a Plan
Impulsively trekking across Europe might be exciting, but that level of spontaneity doesn’t translate well to business running. You need a solid plan for acquiring your goods and ensuring they reach your customers efficiently.
Consideration must be given to ordering products from suppliers and delivering them to your warehouse or storage facility. Once there, effective storage and strategic product placement must be utilized for operational efficiency.
With incoming orders, picking products must be swift and precise. Depending on the items, different materials may be necessary for packaging, and shipping logistics will vary. Some companies might be suited to local deliveries, while others are better for international freight.
Determining whether this entire sequence is managed in-house or delegated to a third-party logistics provider is a significant decision. Additionally, crafting a contingency plan for supply chain disruptions is vital. After all, failing to satisfy a customer is an unfortunate outcome you’ll want to avoid at all costs.
Work With Dependable Suppliers
You will procure products from a supplier unless you manufacture all your items. Most businesses have multiple suppliers with various product lines and SKUs. This is so your business can attract a large customer base within your niche and beyond.
Your suppliers must have high reputations and high standards for your operation. It is not always the cheapest that gets your business as there are other factors to consider like:
- High-quality products
- On-time delivery
- Effective packaging
- Extra inventory
- Customer service
You want dependable, flexible suppliers who go the extra mile when needed.
In this digital age, there is an app for everything. Software helps in various ways in business and is a valuable asset to your logistical process.
Today’s automation technology includes robotic process automation, which handles routine tasks like data entry and inventory management. Other software can monitor supplier deliveries and track packages shipped to your customers. Logistical software benefits are faster delivery, cost savings and less human error. This all boosts your bottom line and keeps your customers satisfied.
Build Solid Relationships
Many people are involved in your supply chain, and you should have positive relationships with them all to succeed. This includes:
- Delivery companies
- Warehouse staff
Beyond logistical outsourcing are the staff you directly employ. Depending on the size of your operation, you may have employees filling multiple roles and moving around to make your logistics run smoothly. Ensure they are trained on their role in the chain and can approach you when problems arise.