A business logistics plan is essential, no matter the size of a venture. All aspects of an operation can be optimized and improved with a reliable logistics team working in the best interests of the company. But how does a solid strategy actually position your company in a winning position? From building resilience through risk assessment and mitigation to vastly improved operational efficiency, there are at least 5 ways that logistics transforms an organisation.
By Team Savant
Image: Adrian Sulyok
Agile Market Expansion Support
Smooth international and market operations are a valuable part of any company, but this isn’t easy to achieve. Partnering with the right logistics firm for your business is a major point of contention when developing a plan that works. Without logistics services like Gateway Cargo, global commerce would come under a very real threat, and that includes your company. Efficient partners are the silent gatekeepers that help local businesses grow alongside global markets.
Resilience through Risk Mitigation
Risk assessment is a critical part of a modern business strategy, especially in competitive and heavily regulated sectors. Risk comes from many directions and can manifest from within or affect a business via external pressures. Examples include reputational risk, operational risk, and financial risk from employee behavior, poor management decisions, and customer loss. A solid logistics plan mitigates risk through contingencies, relationships, and diverse networks.
A Business Logistics Plan Reduces Costs
Issues such as supply chain disruptions are always a threat to local and global companies of any size, from SMBs to international conglomerates. A report by McKinsey found that the cost of poor logistics costs industries around $95 billion per year, making solid and reliable strategies for doing business across borders paramount to business continuity. With an optimized plan, services such as transportation, holding costs, and packaging costs can be greatly reduced.
Improved Operational Efficiency
From external suppliers to end products and services, operational efficiency is vital. With a reliable logistics service, most of the typical disruptions can be negated, including dreaded supply chain issues. Through detailed plans, issues like bottlenecks can be handled in a much more efficient way, alongside contingency plans. Logistics also takes automation into account, where management systems can speed up operations and even help with stock management.
More Satisfied and Loyal Customers
So, what’s it all for, really? Smoother business operations through non-frictional logistics result in happier and more satisfied customers. When customer expectations are met and even exceeded, any company can expect repeat business and a higher potential for increased loyalty. With better service delivery, improved communication and transparency, and even an effortless returns procedure, customers are more likely to engage with your company over the long term.
Summary
Expanding into global markets with an agile approach is a major benefit of implementing a solid and reliable business logistics plan today. Of course, planning is critical in reducing some of the costs that come with modern ventures, including mitigating the potential loss from supply chain problems. However, the end result is what makes it worth it. Logistics and the support it provides will ultimately help your business attract and retain loyal and more satisfied customers.