Why is it that there are small logistics companies that manage to rise above the storm? Why are their companies that decide to file bankruptcy after two years of being in service? Inefficiencies, inconsistency and lack of innovation can drown your company in a pool of innovative logistics company. In fact, a recent study revealed that 43% of small logistics companies fail to track their inventory. The study also showed that 55% of small businesses track the assets manually or do not track them at all. This is an alarming rate considering the fact that tracking your inventory should be an integral part of running a business.
Inventory management, when ignored, can wreak havoc on your business. Say you are spending up to 30% of your budget on maintaining and managing your inventory, but when this aspect of your business is inefficient, something is just not right. It is important to stay ahead of the game so you remain competitive. As there are rabid dogs in the logistics industry, not keeping pace with what successful logistics companies are doing will result in falling behind.
Learn from successful logistics companies
Not afraid of technology
Amazon, a huge online retail company owes its success to its adaptation with the latest technology. They have been so proactive with technology that they managed to streamline essential processes including logistics and inventory management. Amazon uses robots to carry out more tasks.
Automation is a game-changer for this company because, with the integration of robots, manual tasks that are seemingly impossible to accomplish have been finished with a minimum amount of time required.
While not everyone can afford to create their own robotics company but being open to the advancements in technology like using drones, for example, can make a difference. Anything that will make the process much easier should be welcomed by logistics companies.
Even when you are an established logistics company, there is still room for improvement especially if it is about making the process as streamlined as possible. The largest logistics companies are making billions of dollars each year. However, they do not remain complacent. They make it a point to get the little things right.
You can follow in their footsteps by implementing practices that will improve your own process. The key to a successful logistics management is to reduce unnecessary steps. If your employees have to walk 20 feet to pull a box, it is about time you rearrange things so you can shave a few seconds. The more time you save, the more customers you serve.
Aware of industry developments
There are many logistics behemoth that still continues to look for ways to improve. FedEx for instance, struggle after its launch, and they lost millions. Fortunately, Founder Fred Smith thought of a way to save the company by pulling in more investors. Due to the 1977 legislative change which got rid of route restrictions that all-cargo lines operated, the company decided to take advantage of this development and the rest, as they say, is history.
While running a business entails risk, you need to get out of your way to succeed. There are many factors of your business that you need to familiarize yourself with. Understand international law, the role of technology and economic shifts. They are essential to make big decisions that will help you increase your logistics company’s profit. Industry conferences, seminars, and trade magazines may not be valuable today, but sooner or later, they will surely matter.
Good software is an investment
Even if you are running a small business, tracking inventory should be a priority. When inventory management becomes complicated, you need to get rid of the manual process and use software to automate tasks. You cannot afford to ignore inventory tracking because it keeps your company on its feet. Manually tracking inventory will take hours. With good software, everything is made easy.
These simple yet effective practices have helped successful logistics company to thrive. When you find ways to effectively manage your inventory, you will be able to compete and become a cut above the rest.
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