Almost every business has to deal with logistics in some way. Whether you are receiving goods from your suppliers or distributing them to shops, the need for an effective way to move goods is essential.
You might not have given much consideration to your own logistics; however, it could be the thing that makes your business work better and becomes more productive. Here are some examples of how logistics can be beneficial to your company if done correctly.
Do you Need Company Logistics?
The question of whether your business needs its own logistics department depends on what your business is selling. If you are producing your own products, and you need to sell them, then you need to get your products to someone who can sell them for you.
Even if you have your own shops, getting products from your factory to the shops needs an efficient system. There is also the supply factor to consider if you are getting supplies from companies by post or courier, would it be cheaper to collect them yourself?
External Logistics Companies
If you are distributing products to shops or other businesses, you may think that using an external company to transport them is the way to go. Although many companies use external logistics firms, there has to be a justification for doing things this way.
Many companies see outsourcing to an outside company as saving money, however, if you are only distributing to a small area, then sourcing your own trucks for distribution may, in fact, be cheaper.
In-House Logistics Considerations
When you are considering the transportation of your goods or receiving supplies, you need to weigh up the pros and cons to see if doing the work in-house is justified. The advantage to having your own fleet is that you can rely on them to always be available bar breakdown. It is something that could affect an outside company and delay your products shipping.
Exporting to another country is usually too expensive for companies to handle themselves, so you could always outsource exports abroad and keep local distribution in-house.
The downside to using your own fleet is the cost of buying and maintaining the vehicles. You also need to hire the correctly qualified drivers to use the vehicles.
Other Benefits of Logistics
There are other benefits of using logistics for your company that goes beyond moving your products and supplies. If you deal with customers directly as well as through outlets, then you can arrange direct shipping to them as part of the process. It will make the buying process easier and quicker for your customers.
If you are using your own vehicles, you can exploit the fact that you can use your own brand and livery on the vehicles. It will give you some free marketing to your company.
Whatever type of company you own, logistics is an area that would almost certainly affect you. How you deal with the transportation of your goods and supplies, may well affect how your business is succeeding.