For anyone in the business of moving products, whether it be across borders or interstate, the role of solid supply chain and logistics can never be underestimated or undermined by any stretch. These incredibly diversified and overwhelmingly necessary factors are inherently ingrained into the blood of any sustainable business model that delivers goods to clients or customers.
People may not know already, but the notion of internet shopping, and the conveniences that have come along for the ride are entirely dependent on a good and honest supply chain and logistics plan of action and execution. A lot of smaller to medium sized businesses often make the innocent mistake of de-prioritising supply chain and logistics in their budgets in order to filter more money for advertising and marketing purposes.
This could not be less ideal.
While it’s all well and good to put money into additives like SEO and Research & Development Strategies, without a solid foundation of supply chain and logistics to jump off from, clients and customers will not be receiving the fruits of the supplementary labours.
A Vital Cog In The Machine
Let’s give this an example to better serve the understanding of the vital role that supply chain and logistics play in a business model. Say you own an eCommerce company that ships and sells bandanas to markets around the world. Obviously the first point of order would be to find the right supplier or make them yourself.
From that point on until the bandana is in the customers hand is covered in the realm of supply chain and logistics. Packaging, shipping, receiving, customs brokerage (if going international) and freight charges all play a vital role in getting the product from A to B.
Those who outsource their supply chain and logistics responsibilities to a cheaper company, or worse, a multitude of dodgy looking steppingstones in order to save money will see their entire inventory at a standstill, or worse, lost in the process.
For many small businesses that are just starting out, there seems to be less attention being paid to keeping all cogs in the machine moving smoothly, which can lead to a lot of problems down the line.
Principles Of Good Supply Chain and Logistics
There are a number of ways to determine whether or not your current supply chain and logistics measures are up to scratch. One of the easiest ways to determine is with silence, not in the negative connotation, but more in the fact that customers are measurably happy with their experience and complaints are not making their way to your ear at any given moment.
How does this happen you may wonder?
Communication
Good all-round communication is essential for any solid supply chain and logistics arm of a company, after all, many of the steps involved from production to distribution is often handled by different contractors working for the company. Having a solid communicative stream between these factions allows for a more cohesive experience overall.
Experience
Experience will always determine the strength of the supply chain and logistics of any enterprise. Typically, the smarter agencies and businesses will outsource to a single contractor who will then utilise their connections to ensure the job gets done well and on time. These connections and assurances can only stem from a solid foundation of experience and years in the business. Entrusting the bureaucratic aspects of the business to a trusted contracting company will alleviate any pressing concerns or queries one may have if going at it alone.
If you’re a small business or even medium business owner, don’t hesitate, prepare and hire the best of the best.