Starting up a new business in today’s economic climate is nothing short of a brave move, given the stagnated flow of money between businesses, investors and other businesses at present. However, the right business structure has every chance of breaking through to its core consumer demographic, provided the right infrastructure is there to meet demand and scale with it.
There are so many considerations that businesses need to make as they expand, from payroll and HR to customer service and beyond. But arguably the most important one to get right for long-term success is logistics. What follows is a discussion of logistics, and how your business can benefit from a solid approach to logistics processes.
What is Logistics?
Logistics is an umbrella term, used in business to refer specifically to the “delivery” side of a business’ structure. This concerns the movement of goods and materials, whether between supplier and client or between business and consumer.
Logistics, while an extremely specific corner of a business’ operation, is a wide field, and includes within it the management of material storage and arrangement – i.e. the warehouse. As such, logistics encompasses a business’ attempts to manage material stock and flow in order to suit shifting consumer volumes and needs.
What are a Business’ Logistics Options?
Start-ups, in order to properly engage with the logistics side of their operation, need to consider a number of different approaches in order to meet their needs, obligations and targets. This largely applies to businesses that manufacture or supply physical products, relying as they do on the logistical management of item procurement and delivery.
One corner of this, then, is storage. Any items that are manufactured or procured, whether to fill a stock volume or for a specific customer order, need to be stored efficiently and effectively. This necessitates physical warehouse premises, arranged for the easy collection and distribution of goods by operational logistics staff or outsourced parties.
Speaking of which, item delivery is the most important part of the chain, being the primary link by which the customer meets your business. Start-ups do not typically have the capital or reach to manage last-mile delivery themselves, meaning outsourcing to third-party operators is essential.
The choice here relates to the nature of a given business; e-commerce businesses leaning towards consumer products, or B2B enterprises in engineering and manufacture, might benefit from same-day delivery functionality, while made-to-order businesses might prefer a specialised courier.
Logistics and Business Success
The above examples should serve to illustrate the importance of considering logistics as a business, whether new or established. But they do not illustrate the benefits that this thinking can confer onto a business. Having the agility to meet new order requirements or shorter deadlines for delivery makes a business much more competitive, and increases the likelihood of repeat orders. This, in turn, improves longevity and opens up room for expansion.
