Implementing An Effective Logistics System For Business Growth

When goods are delivered on time and in good condition, it encourages repeat purchases. In addition, if your logistics system is well implemented, it also gives you an edge over competitors as your business will draw a wider audience.

Significance of Logistics

Just like with large enterprises, small businesses also have to find suppliers, and transport their merchandise to different outlets. The key difference between the supply chain of a small company and that of a big one however is that the latter will often involve all the main fields of logistics which are procurement, production logistics, distribution logistics, and disposal or reverse logistics. If you are a small business owner, chances are you will only engage in two or three of those fields, and will hardly employ a third party. Nonetheless, when your system is well managed, your productivity will be increased, ongkir Surabaya Bandung inputs will be put into better use, and excess inventory will be reduced. Not to mention, with a more efficient supply chain, you will avoid waste and cut costs and subsequently improve your bottom line.

To take advantage of the benefits of an effective system therefore, it is important to have those operations managed by a professional. As a small business owner, you may think it is better and cheaper to handle your own logistics. In reality however, you may end up encountering problems that may make it difficult for you to deal with other business concerns and in the long run, your bottom line will hurt. Thus, as much as it is important for you to sharpen your skills in logistics, it is best to assign the job to a logistics manager. Such a professional will adopt the best practices to ensure that your business experiences the highest benefits.

Improving Your Business Logistics

To facilitate efficiency in logistics, one of the first things you have to do is to analyze your storage processes. Whether you have only one person or several workers to help, you have to ensure that enough space is created in your warehouse before the arrival of your goods. This also calls for proper preparation of the storage facility. If you are dealing with perishables for instance, you have to make certain that the temperature and air conditioning is right. Otherwise, your goods may go bad before you move them through to your customers. In line with this, the merchandise shouldn’t sit in the facility for too long because then, the cost of each unit will climb and your profit margin will shrink. You must devise a strategy that will enable you to minimize the storage period from the time a product is completed to the point it is sold.

Transportation is yet another key area of concern. Even as fuel costs go up, you have to aim at cutting down transportation costs. This should essentially begin from the product design and packaging. Packing items of the same shape in one container prior to shipping will for example enable you to maximize on space. Also, if packaging takes up a lot of space, where possible, it is wise to reduce the weight and size of the packaging material so you are able to bundle more of that particular product. In addition, it is vital to limit the number of boxes you use for shipping; hence, the lesser filler you can use, the better. With few trips to be made, the costs incurred will be more manageable.

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