One of the most complicated aspects of any small business is supply chain and logistics management. Without a solid plan in place, businesses can struggle to run efficiently and cost-effectively. Getting all of this just right is so important that many businesses say it’s one area where investing can pay off handsomely.
One of the most crucial steps in uncovering what needs improved in the supply chain is carrying out a SWOT analysis to identify strengths, weaknesses, opportunities and threats. After determining which areas in the supply chain need to be improved, it’s simply a matter of getting the right resources in place to get things back on track.
Tracking and Planning
Tracking is a big part of a successful supply chain and logistics plan. Manufacturers need to be able to keep tabs on the raw materials and finished products so they can respond swiftly when raw materials are held up or production changes need to be made. Planning for demand and production is also crucial.
One aspect of small business logistics that can cause a lot of problems is determining where to place goods and how they should be distributed. It might not sound very complicated on the surface, but it’s an area where no business can afford to make mistakes. Warehouse and distribution resources like cross-docking operations and small package forwarding can help improve cost-efficiency.
Small businesses also need to consider their branding when it comes to items that will be shipped directly to customers. In these cases, it’s important to customize the outside of the products’ packaging with touches like custom shipping label to make a good impression and boost customer satisfaction.
Because logistics can make or break a company, small businesses should consider hiring a third party logistics provider that is well-versed in the ins and outs of their particular industry. Outsourcing this aspect leaves you with more time to devote to the bigger picture of growing your business.
This blog post was based off an article by Routes & Branches. Read the full article here.