Pretty much everyone is familiar with shopping online now. According to the latest IMRG Capgemini e-Retail Sales Index, the sector grew by 14 per cent over the last 12 months, taking total spending to £104 billion.
However, logistics isn’t limited to e-commerce. It’s generally agreed upon that there are nine key areas of logistics, including accounting, banking, information technology, insurance, legal services, real estate, travel, and website development.
There’s an increasing demand for logistics companies who can reliably fulfill their client’s needs. Handling logistics for any industry can be stressful especially if you have not made concrete plans throughout the process.
This could be a great new business venture for a small company looking to get a foothold in a thriving industry. To make sure you get off on the right path, here’s what you need to know before you get started.
Know your market.
Before venturing into any new kind of business, it’s recommended that you gain at least some experience working in the industry. This experience will be invaluable to you in the long-term. When you better understand the intricacies of a business, you’ll be able to solve any problems that arise more efficiently.
Secondly, being a part of the industry means you’ll be able to establish connections with other companies. These businesses may become essential, day-to-day parts of your future company.
Having this kind of experience in the market will establish credibility, vital for any small business. Without credibility, clients are less likely to trust that your company can store their products safely or ship them in a timely manner.
Don’t fail to plan the entire process.
The logistics chain of a even the smallest business can be difficult to manage, and unless you’re extremely efficient, prepared to anticipate problems and execute contingency plans when required, you’re going to find it really difficult.
Planned ahead for what could go wrong. Delays can cost you more than you can imagine, it’s important to plan well head to eliminate the possibility of any delay in the process.
Get the right equipment.
After you’ve gained some industry contacts and want to branch out into your own company, you’ll need to make sure you have the right equipment. European Handling stock a variety of essential warehouse equipment, such as life tables, load movers, and pallet trucks that could be of immense help to any logistics company. Other U.S. based companies allow you in searching and finding used forklifts in your area as well.
For larger, more costly pieces of equipment it’s generally recommended that you choose to rent them on a monthly basis rather than buy upfront. This is advised until you start to get a foothold in your market.
Make the most of technology available to you.
Entire process of supply logistics can be managed better with technology. You can consolidate the entire sales, processing, accounting, inventory, forecasting, fulfillment and shipping process with the right technology. Focus on tools that can cuts out the middle man and eliminate repetitive data entry, saving your business money by cutting overhead costs.
Many businesses fail within the few years of operation so take a look at these survival tips to ensure the future of your company. After a failed business venture, the last thing you want to have to do is be left with an expensive piece equipment that you have to take another loss on.
Competition is formidable in such a large and varied industry. The best way to combat this is to focus on creating a unique brand and niche that makes the services you provide stand out from the competition.
Remember that your customer’s word of mouth is key to developing your reputation as a reliable company. If you aren’t always looking for ways you can improve, you’ll struggle to be recognized ahead of other firms.