A significant proportion of a company’s annual earnings are allocated for the logistics function by organizations both big and small from around the world. It is evident by this fact that the function is an integral part of a firm which can greatly reduce the overall cost if handled properly. For a small scale or a start-up business, the impact of this function can be a lot more serious and therefore, managers or decision makers must do the best they can to manage this organizational activity. Discussed in this article are a few effective ways in which small scale enterprises can achieve this to become successful corporate bodies in the industry.
A customer-centric service
Your main focus maybe to keep the costs of the logistics activity to a minimum in order to have a positive impact on the company’s bottom line, however, even if you manage to produce a product or a service of the highest level of quality, if it doesn’t reach the customer in time, they will grow frustrated with your product and seek other substitutes in the market. Because of this reason, the logistics activity of any business must be predicated on the customer and the nature of their requirement. If the customer requires you to invest on a 2nd hand shipping containers for sale to meet the existing demand level, that is what you must do. The funds you allocate for such value adding assets will be recouped in very little time because of the improved sales resulting from adequate supply to the marketplace.
Third party logistics (3PL) companies are a unique set or organizations that are specialized on supply chain related activities. These firms offer their services to other businesses who, manufacture products and services by performing the logistics function of the said organizations on behalf of them. Small scale companies often find it difficult to acquire the sufficient funds to purchase a trusted container rental in Newcastle or maintain their own vehicles for the transportation of raw materials and finished goods. Especially when dealing with foreign markets, small local businesses do not have the contacts or the funds to obtain the services of an efficient shipping line. A 3PL company will use their years of experience in the industry to make your life easier by facilitating your transportation requirements at affordable prices.
Issue quotations for expenditures
A common mistake made by most supply chain and purchasing managers is obtaining the services of a fixed set of third party organizations for various supply chain related activities without properly exploring all available options in the market. In this highly competitive market place all suppliers are trying to attract businesses by providing the best services at the lowest rates and such suppliers can be evaluated by issuing quotes to them and prompting them to offer you the best deal from the pool.