Logistics for Small Business



Last Updated: Jan 30, 2015
Whether r SMB manufactures guitars, heavy equipment, or foodstuff, the logistics of moving r products safely and on time through r distribution network n be a costly nightmare. Here are tips for better managing the process.

For many small businesses, transporting r product from one place to another n be a nightmare. Many small businesses have to the hard way, logistics is no laughing matter. It n be stressful, costly, and n pose a signifint risk to r business and its reputation. Suppose there is a mistake being made somewhere along the supply chain, and a client receives the product much later than anticipated. Or perhaps there was a mislculation in regards to the cost, leading to a signifint cut in margins. Or perhaps something happened along the way in transportation that led to the product becoming damaged, are covered by insurance? If r business deals in physil products, undering and factoring in the logistics of it all is absolutely crucial, and n be easily overlooked or mislculated.

So with all that being said, here are some helpful tips that could ease r logistics related troubles:

ider a third-party

If have the budget for it, n hire out an industry specific third-party logistics provider. Depending on r specific market, n find a company that specializes in the logistics end of that particular market. Outsourcing, more or less, the entirety of r logistil needs n free up r time and allow to focus more on innovating and growing r business. This may not be the most cost effective option, but it could be the simplest and most convenient.

ider teaming up with a partner

Start networking with other small businesses who may be in the same situation and may face some of the same budget restrictions. Most logistics companies set their prices based on volume, and teaming up with a partner could provide a more cost effective way to meet r needs. This particular option needs to be explored more thoroughly, need to take into account not only the specific details of the logistics company, but also the specific needs of r partner. 

Try a small business logistics service from a major provider

If the size and budget of r business nnot warrant investing money in a specialized logistics provider, perhaps it could be beneficial to explore what some of the major and transportation providers offer. UPS, FedEX, and DSL all offer services that ter to small businesses. Given their reputation for reliability, this could easily be a viable option for r business.

ider an industry specific provider

Depending on r particular business, may find it more advantageous to hire a specialized logistics provider. This is not to be confused with the previously mentioned third-party option, which may specialize in serving small businesses. An industry specific provider would know the specifics on how to handle and re for the product being delivered. ider a business that produces and sells wine, it may be more beneficial for that particular company to hire a logistics company that knows how to transport and re for something of that nature. The same could be said for food products, or even clothing. The quality of the service and re for the product in transportation, is of equal value to the cost of hiring the logistics company. may spend more money on an industry specific provider, but ider the risk of hiring a provider that does not specialize in r particular market. If a product is mishandled or damaged, that’s money down the drain.

Summary

It is important to weigh the pros and when idering a plan for r business’ logistil needs. Some providers may charge a higher price for their services, but that may also result in a lower risk of mishandling or damage. It is also important to ider the reliability of a company being idered. Will this company deliver on time? Will my product be damaged, mishandled, or even ? There are a lot of factors to ider, and its important to ider them all in order to find the most efficient and cost effective option for r business.

© 2015 Attard Communitions, Inc. All Rights Reserved. May not be reproduced, reprinted or redistributed without written permission from Attard Communitions, Inc.

Brad Egeland is a Business Solution Designer and IT/PM ultant and author of A Real World Project Manager’s Guide to the Successful Project. He has over 25 years of software development, management, and project management experience leading initiatives in Manufacturing, Government Contracting, Creative Design, Gaming and Hospitality, Retail , Aviation and Airline, Pharmacel, Start-ups, Healthre, , Non-, High-Tech, Engineering and general IT. Brad is married, a father of 11, and living in sunny Las Vegas, NV. Visit Brad’s site at www.bradegeland.com.

Source