How can a logistic company help your business?

When we think of logistics, we often think of large-scale operations which moves quantities of goods from location to another. Whilst this description was true back in the 1950’s, logistics now embodies all of supply chain management (SCM).

Supply chains have become exceptionally complex, with globalisation and consumer demand for lower cost goods and services, supply chains now span global networks. The more complex the supply chain, the more management is needed to ensure a smooth transition from production to end user. Supply chain management doesn’t just refer to physical assets and products, it also embodies data, data harvesting and storage.

How can your business benefit from a logistics company?

Whether you are a small business that is growing or a large business with customers all around the world, a logistics company can help you grow and sustain your customer base. You can pick and choose which aspects of logistics you wish to have managed, from design, implementation, distribution, storage to management of the entire supply chain. Most supply chains now have complex links and move across international borders with differing trade laws and tariffs, with a logistics firm, they can manage these complexities on your behalf.

Expertise

Logistic companies specialise is making the links needed to ensure that your customers get the products they want, in the time they want. They have the knowledge of how to get your product from A to B, and also how to deal with any problems that may arise from shipping and storing.

Contacts

Look for firms that have been in business for a good amount of time, these companies will have good links with distributors, warehouse operators, data storage companies etc. Due to their knowledge of the industry, they may be able to negotiate a lower rate than your organisation could.

Time

By outsourcing to a professional logistics company, you could save time which can lead to cost savings. Hiring a firm that already has the industry contacts, trained staff and expertise will harmonise procedure within your organisation and will also enable staff to concentrate on other areas of the organisation.

Resources

Outsourcing provides the ability to allocation organisational resources into other key profit-making areas. Making more staff available for other areas of your organisation will make you a more dynamic and responsive organisation and will enable to you to continue to grow your consumer base.

Competitive advantage

An effective global supply chain that can react to dynamic market conditions and customer demand is one that will give your organisation competitive advantage. If you keep your supply chain in house, it may take time to renegotiate any aspect of it if something were to happen, such as a key distributer falling through. Through using a logistics firm, this liability will have been pre-empted and solution found before your organisation felt any impact.

Liability

Internal supply chain management has increased liability if an incident was to occur, such as data or product loss. Through using an external agency to provide the management of the supply chain, the liability is also externalised from the organisation. Liabilities will be covered in the agreement between the two, with the logistics organisation setting out terms that they will cover in the event of a supply chain issue.

Reputation

If you are growing your organisation or want to sustain your current level of customer base, using a recognised logistics management firm will give your organisation validity and help build your reputation. This is invaluable in the day and age of social media, where reputations can be made through good reviews and customer service.

Logistics can apply to one aspect of your supply chain or all the links in it, a good logistics firm will give you the option of what aspect you want managed or will manage all of it on your behalf. The benefits of outsourcing to an external organisation mean that you can focusing on sustaining your level of customer service whilst concentrating on growing your organisation. Liabilities with regards to the supply chain are also absorbed by the logistics firm so risk is minimised on your organisation. Save time, resources, increase profit margins and reputation by outsourcing to an expert organisation who is aware of market conditions, trade tariffs and other global supply chain complexities. This will help you increase your competitive advantage and move your organisation towards being a dynamic and proactive one, rather than an organisation that is reactive to market conditions.

Adam Hansen