Getting a business off the ground always starts with a dream. Whilst the majority of entrepreneurs are happy to commit plenty of long days and nights to running a business, there are others that want to enjoy the benefits that come along with running a company.
If you’re wondering what the difference is between good entrepreneurs and sensational ones, you’ll be surprised. It’s not about having the most money or being more ruthless than everyone else… No, it’s about knowing when to delegate to someone else, to someone who knows better.
There is only so much one person can do, and it doesn’t matter how amazing you are at knowing your industry – two brains are always better than one, so share the responsibility if you want to see your business grow.
So, if your business is part of the ecommerce industry, that means you’re going to rely on an amazing logistics operation if you’re going to deliver the standard your customers have grown accustomed to.
But when it comes to running a business that supplies goods, the truth of course, is that apart from developing and selling excellent products, it’s how they are delivered to customers that plays a major role in the health of your company.
And being an SME, if you fail to hunt for the best logistics help, you’ll likely lose out to competitors who have already forged those relationships.
If you’ve been looking for assistance to manage the logistics side of running a business, then look no further, as the team at Plastic Box Warehouse have put together their top tips to efficiently running a company with a great logistics operation.
Wrap Your Mind Around the Goal
Before you execute your plans, ensure you’ve got a clear understanding of your business’s mission statement. If your tactic is to provide your customers with the quickest delivery time when compared with your competitors, then to achieve that, you’ve really got to think seriously about your logistics supply chain. Are there ways in which you can speed up the process, without sacrificing value and customer satisfaction?
But, on the other hand, if you’ve decided to be a low-cost supplier, then you’ll have to look for ways to trim down your expenses and it may be that you have to supply goods at a slower rate.
Put Money on Collaboration and Visibility
Irrespective of what your tactic is, you cannot manage an efficient logistics operation without visibility and the capability to interact with suppliers and customers promptly. Collaborating would allow you to keep the stocks low whilst keeping lead time at bare minimum.
Always think about your warehouse management systems and logistics as a part of the core fundamentals – as vital as computerised storage, retrieval systems and forklifts.
Having close to perfect processes will ensure that you can collaborate efficiently. If you decide to work with an order fulfilment company, make sure that they are the best at delivering that type of service.
It is also crucial to make sure that your products are stored safely so that you can deliver your stock to your customers in a perfection condition. Heavy duty plastic boxes, such as tote boxes, are great for protecting stock whilst it’s in the storage stage of the process.
Concentrate on Products Your Customers Want
Though your business concentrates on expense control, you still have to offer services and products that your customers will be happy with. Within the boundaries of your tactics, look for creative ways to make sure that you’re fulfilling the needs and requirements of your customers.
Studies reveal that only 2% of providers feel that their capability to communicate with their customers is exceptional, with only 46% of them feeling that their ability to communicate is good. For some customers, status updates might be of the utmost importance, even more so than a quicker delivery or cheaper service.
Check Out the Competition
It might seem like buying 101, but since most SME’s are pressed on time, they do not always bother with negotiation or retrieving quotes from several logistics suppliers.
You may be doing your business a great injustice by not bothering to ask around. Check out what is happening in the industry and see if there are other companies offering a better service, whether that’s because it’s cheaper, faster or because the service they provide comes with a valued perk or two.
Have A Record of Expense Details
Benjamin Franklin once said, “Watch the pennies and the dollars will take care of themselves.” Well, every entrepreneur must swear by this philosophy and really stick to it. You must know how much you’re spending on each feature of your supply chain and logistics operation. You’ll not be able to control your expenses if you aren’t aware of where all the money is being spent.
Enhance Sales and Operations (S&OP)
Effective S&OP planning helps you comprehend when you may require extra workers or equipment. If you make the goods yourself before handing them over to logistics companies to disperse, it may mean having better storage solutions in place so that you can keep up with ever-growing demands.
Precise predictions will aid you in purchasing stock and will help to ensure that you’ve got enough products to meet the current demands. Running out of stock at a crucial time (for example, shortly after a product launch) can be a huge mistake that costs your business more than you’d like to think about.
Put together an annual forecasting budget so that you are as prepared as you can possibly be.
By taking the above tips in your stride, your company will surely be more efficient and organised, and it will deliver the best service possible, which is all any customer really wants, right?