Businesses of every scale must focus on having efficient logistics. However, small businesses, in particular, must build a solid logistic strategy because the total amount of freight is generally low. This means that investing in full truckload (FTL) logistics for one single shipment is not viable.
So, what is the solution to this problem? Less than truckload logistics for small business freight shipping is a great way to mitigate the risks involved in low inventories while also ensuring cost-effective shipment. On the other hand, shared truckload (STL) is another great alternative to FTL. But this is just the tip of the iceberg. There are a lot of other things that small business owners must consider in order to build a solid logistics strategy.
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Identifying the key performance indicators (KPIs) will help you set a target as a small business. The KPIs provide a guide on where you are currently and where you must head in the future.
If you are new to the business, focusing on a handful of KPIs will make decision-making difficult. So, it is safe to concentrate on the cost and efficiency of the shipment.
For a cost-effective and efficient shipment, you can opt for less-than-truckload (LTL) or shared truckload (STL) logistics. This method allows the shipment of a small amount of freight for economies of scale, which minimizes the cost of individual shipments.
With LTL, you can also ship the freight frequently, meaning you don’t have to wait for your inventories to run extremely low to replenish them again. So, efficiency and cost-effectiveness are two factors that are taken care of by LTL and STL shipping.
Recommended reading: Optimizing Accounting in Logistics and Transportation: Streamlining Processes with Automation
If you are a manufacturing company, the inbound supplies are the lifeblood of your business. A single delay in the supply chain will lead to heavy financial losses.
Therefore, you must keep track of every raw material that is coming to your factory or industry. Create a time framework for the incoming raw materials and plan your inventories accordingly. Doing this will ensure that there is zero downtime due to a lack of raw materials.
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As a small business owner, you probably have a small team that is looking after the entire logistics. This is why it is important to partner with a trusted third-party logistic service provider. With digital advancements spreading around the world, you will find a trusted logistics partner online. These logistic partners come with a truck fleet that delivers your freight on time.
There is a simple rule that applies to every situation in life: “You have to ask for it if you want it.”
So, if you have a fixed budget in mind, don’t hesitate to discuss it with your shipping partner and ask for a discount on the total price.
To get the best price for your shipment, you must talk with multiple service providers and see which one will be the most financially viable for your needs.
Recommended reading: Delivery Slip: Enhancing Transparency & Accuracy in Logistics
Effective risk management is another factor to consider when building a solid shipping strategy. Consider all the challenges you may face and craft an effective plan to mitigate those risks. Doing so will prepare you for any unforeseen circumstances and help you save time and money in the long run.
All modes of transportation face interruption in some form or another at some point. How can you ensure you are not losing your valuable customers in this situation? Communication is the key in such cases. Every customer appreciates open communication that gives them a heads-up about any potential delay that may possibly occur.
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A solid logistic strategy can make or break your business. Everything depends on a cost-effective and efficient logistic plan, from acquiring raw materials to sending the final product to the customers and other stakeholders.
So, how do you plan a robust strategy? Follow the guide mentioned above and partner with a trusted logistic company that will offer a cost-effective and efficient solution.
Recommended reading: Document Automation In Logistics Compliance