Being able to finally start your own business is a great milestone for a few people. Especially if your business is something that you have always wanted to achieve for a very long time. It took a lot of planning to get to where you are at the moment. But, it will take a lot more time and effort to continue and thrive to find your logistics partner.
One of the most important aspects of every business is logistics. Logistics has been defined as “detailed coordination of a complex operation involving many people, facilities, or supplies.” For your business, this may mean the management of your stocks, the movement of raw materials from your suppliers to your factory, or simply the delivery of your goods to your customers. For any type of business, no matter how large or small, a proper logistics system must be in place to ensure that you are maximizing sales and not losing customers because of faulty practices.
If you are a business owner and you are wondering if it is time to look for a logistics partner, we have prepared the most common signs that will tell you if it is time to look for a logistics partner.
- You are using business space as a warehouse For most entrepreneurs, there should be a separate space for business operations and warehousing. Your typical office is where most of the administrative and management action takes place. While your warehouse is where you keep your inventory. But, if it already happens that your stocks are already occupying the space that you have for your business operations, then you have a problem. It might be that you no longer manage your stock level properly or your goods are not moving as fast as they should be due to some problems. Whatever the cause may be, this type of issue should be looked into as soon as possible.
- You have discrepancies in your inventory Your inventory refers to the goods or materials that you have in stock. These goods are counted as part of your tangible assets to effectively run your business. One of the main responsibilities of a business owner is to always check that your inventory is 100% accurate. This is crucial because your inventory is essentially your business. You have to have a clear picture of the health of your inventory at all times to be able to make sound business decisions. That is why it is a major red flag if your inventory no longer checks out. A lot of issues can cause this to happen. It might be that proper recording protocol is no longer being followed or worse, someone in your business is not reporting correct movements of your inventory. This problem if not resolved immediately can break your business.
- You are receiving bad reviews from customers Customer reviews are very important to your business. As most businesses shift more into e-commerce, your good online reputation and brand image are very crucial to survive the competition. If you no longer make your customers happy, then there must be something wrong with your business process. The good thing about bad reviews is that you can use them to make your business processes better. Take a look at the most common or worst comments that are being thrown at you. Evaluate properly if these comments are valid and immediately take the necessary steps to make your process better. For logistics-related concerns, you have to be very particular about reviews that tell you that their order “arrived late” or “damaged when received”. These specific types of reviews will tell you that somewhere along the way, your logistics system failed.
- You spend a lot of money on shipping your goods If your business is catering to customers across the whole country, you have to rely on logistics companies to transport your goods from point A to point B. This is a typical process that most business owners go through. For most, this is simply the easiest. But is it cost-efficient? Most of the time, it isn’t. Moving your goods across the whole country from a single point of origin means that you will have to incur more costs for orders that are far from you. You will either shoulder the cost of shipping or will have to pass on the cost to your customer. Either way, this is not a good solution from any business standpoint. More cost involved in shipment means that you will spend on unnecessary operating costs or your business will not be at par with your competition in terms of pricing. However you look at it, this type of issue will hurt your business in the long run.
No matter what kind of business you have, and no matter the size, you have to take all the steps necessary to make sure that you minimize expenses and maximize profit. After all, that is one of the essences of engaging in business.
Logistics is one essential part of running your business that you should never take for granted. Luckily, Soul Logistics can offer you solutions for any type of logistic needs that your business may require. If you are starting small, you do not have to worry. Our business solutions are scalable and can be adapted to the needs of your business as you grow. Talk to us today and find out how we can help.