Every Australian business, both big and small, should be focused on improving their logistics process and ways to operate more efficiently while also saving money where they can.
Without a solid plan in place, you can see costs rise and difficulties managing fluctuations in stock.
Here are 5 important tips to make the most of your logistics process and scale your business more efficiently:
Ask Yourself What Matters Most
Before thinking of your logistics process or how you want to tackle it, think of your business as a whole.
What are your goals? How can you help provide a better experience for your customers? What’s your current process for managing stock?
These questions can allow you to gauge how you’ll tackle your logistics plan and how you’ll allocate budget and resources for it.
For example, if you plan on getting your products out as quickly as possible and have stock already on hand, then you might look at warehousing and spending more money to allocate additional labour to help out with getting your products out.
Look at What Services Are Most Important to Your Customers
The goal of your logistics plan shouldn’t just be to scale your business, but to enhance your business and provide the best possible service for your customers.
Free shipping usually comes to mind when businesses are looking to provide a great experience for their customers.
This requires a business to then take shipping costs into account and look at their profit margins to make sure it’s a viable solution.
Surveys and asking your customers for feedback can help you place your efforts where they’re needed most. If customers value fast shipping and are willing to pay for an express delivery service, then that’s an area you should focus on. Whereas if you sell lower ticket items and price sensitivity is a bigger concern for your customers, then you should focus on getting the lowest shipping costs possible even if the shipping times are longer.
Track Everything You Can
As with every aspect of your business, track everything you can to make sure everything is running efficiently. Tracking your costs is paramount when you’re trying to scale your business, but businesses tend to stop there.
Scaling your business and getting on top of your logistics involves tracking figures such as your average order fulfilment time, average delivery time, and more. Tracking numbers like these means you can really stay on top of and optimise your fulfilment process.
Speak to Multiple Service Providers
Many times, business owners might look to outsource their logistics process and can be tempted to sign up for the first service they find without really asking for different opinions.
Speak with different providers and see who really understands the goals and questions you outlined before you started your logistics plan.
Certain partners might provide better shipping costs but longer fulfilment periods while some might be faster in both shipping on order fulfilment, but cost a lot more.
It’s important to find the right partner for you and your business, but also at a price you can comfortably afford.
Work With a 3PL Partner
One way to navigate the logistics landscape at an affordable cost is to partner with a 3PL (Third Party Logistics) provider.
A 3PL service provider can take care of all aspects of the logistics process, from warehousing, stock management, systems integration to shipping and delivery.
Outsourcing your logistics means you can let someone else take care of everything discussed up to this point. Speak with multiple 3PL providers to see who has the best service offering and to find out who aligns with what you and your customers are looking for.
There are a number of different considerations to make when you’re thinking about your logistics plan and how you can make your processes operate smoothly.
All of these points can be covered by a 3PL service provider like the team at G&S Logistics. We take care of everything from warehousing to fulfilment, so you can focus on growing your business. Get in touch with our team and call us on (02) 8739 4974.