Get ready to see an extreme change in how businesses approach logistics this year. Smart business owners realize that this is one of the key areas of their company that could undergo drastic improvements. Why? Because logistics means everything for a brand – something as simple as a poor delivery schedule can put customers off and make you lose business.
So, how are business owners rethinking logistics this year (and beyond)? Let’s have a closer look:
Logistics Disruptions Are Costing Serious Money
Many companies face a loss of money from common logistics along the supply chain. The main issues stem from goods changing hands a lot throughout the entire process. One company picks up the goods on land, then another handles them at port, and another deals with them when they arrive on land again, etc.
It’s like the old saying: too many cooks spoil the broth – but in logistics terms.
That’s why the smartest business owners are trying to mitigate disruptions by choosing companies that can handle the entire process themselves. It stops too many people from getting involved, meaning logistics doesn’t end up being a top financial mistake for your business.
Poor Transportation Choices Damage Goods
For years, companies would use the same transportation choices for all deliveries, regardless of what they were moving. It was more about speed and cost-efficiency than anything else. However, poor transportation choices can damage goods and cost businesses more money.
This is something that smart business owners are very aware of, and they’re dipping into transload logistics to solve the problem. Transload logistics involves transferring goods from one mode of transport to another at a separate facility. It means goods can be removed from a container, placed in a better one, and then sent via transportation that’s less likely to damage them. E.g. Rather than sending things via train, you swap them over to a truck for better stability.
It’s all done to prevent goods from spoiling or getting damaged, which saves businesses money.
Customer Expectations Are Changing Rapidly
In the earlier days of e-commerce and online deliveries, customers were happy receiving their goods within a week. Things are very different now. Customers expect next-day delivery all the time – and without having to pay a premium price.
Of all the logistical challenges, this is the hardest for business owners to adapt to. It’s all about finding ways to implement things like same-day or next-day delivery without making it cost the business (or the customer) too much money. Ideas involve special VIP schemes that customers pay a subscription fee for, but it grants access to faster free delivery times.
Smart business owners are trying to meet these expectations so customer satisfaction doesn’t dwindle, and the business can still thrive.
If you’re thinking of ways to improve your business in the New Year, then perhaps it’s time to think about logistics. Your methods may be outdated and in serious need of a revamp, so keep these points in mind as you consider how to improve the way your goods get from A to B.
