Logistics is defined as the coordination of employees, operations, and supplies. Because it can mean the difference between success and failure, companies are continuously putting logistics at the forefront and praise them as the driving force behind successful operations. Below are 5 reasons your business needs to be concerned with logistics if you are not already.
1. Promotes transparency
Effective logistics management enables customers to know when their products will be delivered. This is possible by allowing them to track how the products move from the company to their destination. In case of any delays with the delivery, you can notify the customers, determine how long the delay will take, and provide a solution.
Effective 3PL logistics management also allows you to analyze past deliveries. This way they can understand how your company conducts its deliveries and make improvements if needed.
2. Improves customers experience
Customer satisfaction should be at the top of every business agenda. Logistics can help you to enhance the experience of your customers by ensuring quick and timely delivery of products. This ensures the products are always available to meet the demand of the customers. A delay in the delivery of products or any instances where they are unavailable, on the other hand, can give a bad customer experience and may make them abandon you in favour of your competitors.
Proper management also helps to reduce shipping costs. Lower shipping costs translate to cheaper products for the customers. This will make you an attractive option for customers who will return to you for future needs.
3. Cutting costs & improving efficiency
Businesses with good logistics management facilitate the timely delivery of products as they understand the average time it takes to move goods from one place to another. This ensures products are delivered quicker. Without reliable logistics, you may incur losses. For instance, if you were to transport perishable goods within a day and you take two days to deliver, the products will most likely spoil while in transit. This results in huge losses for the company.
As mentioned, logistics can also help you to analyze your past deliveries. This helps your company to understand past delivery challenges and come up with solutions to prevent problems, resulting in the efficient movement of goods.
4. Maintain competitive edge
For your business to stay competitive, you need to be concerned with logistics. Your company will be able to deliver goods on time, in good condition and at low costs. This kind of efficiency will help your business attract more customers and therefore gives you an edge over the others.
Proper planning also helps your business to expand. Growth in your company will improve service delivery at lower costs due to improved efficiency. The result of that is an increase in customers at the expense of your competitors.
5. Increase in revenue
Logistics will help your business maintain an on-time and in-stock position. The availability of products to more customers ensures sales stay high, resulting in increased revenue for your company. Also, efficient transportation helps goods to remain in good condition which allows them to demand better prices.
Your company can also use logistics as a marketing tool to increase sales and revenue. For instance, most companies with efficient logistics are providing free shipping of goods to their loyal consumers or those that order in bulk as a way of marketing. Free shipping can help improve sales which increases revenue. Without efficient logistic management, shipping may be costly which makes it hard for some companies to offer free shipping and costs are then downloaded to the customer.
