Business competition has no end. Every day, companies around the world fight for customer approval in a battle that will start all over again the next morning. And, in order to win, the relationship with your logistics operator is often essential.
It is not enough for firms to improve what they did yesterday, but they are forced to reinvent themselves and go further. To open up to new markets and offer new services. That is why we have compiled nine of the aspects in which a logistics operator can help your company to take the step to the next level.
How a logistics operator drives companies
1.- It helps you reach new markets
For a company, growth often means having to reach new markets. Whether they are geographical areas of the same country or beyond our borders, to achieve this it is necessary that our logistics accompany us along the way.
It will be of little use for us to create a new commercial force in the area if we do not get our products to reach new consumers in the best conditions. Is our logistics operator prepared for it? Will you be able to provide us with solutions that allow us to remain competitive despite the distance? Do they have the capacity and the necessary infrastructure to continue supporting us in our new markets?
2.- Improve your processes
Although we tend to reduce logistics to shipping materials, the truth is that it goes much further. And, precisely because they are aspects taken much less into account, they constitute a wonderful opportunity for improvement. This is the case, among other processes, of supply logistics, which is the part in charge of ensuring that the necessary materials for the performance of your activity arrive to you in a timely manner.
For this reason, it is very common to ask ourselves if we would be able to ship enough products if our company grew strongly. But we spend less time thinking about how we would be able to manage all the receiving, storing, and putting away of materials that we would need to meet this demand. What type of warehouse would be the most appropriate? Can our processes take on a greater workload or would inefficiencies occur? Should we use distribution centers close to our customers? Create several production centers? Your logistics operator can be a great support to know, plan and improve your processes and resolve these issues.
3.- Selling more
Logistics is not going to replace your business processes, but it does have a direct impact on sales. Every time you suffer a stock out and your customers cannot buy from you, you will be endangering the sales of your company, since a part of them will not wait for you and will replace you. Poor logistics will push your customers into the arms of the competition to replace you, and they will be happy to receive them. Less stock breaks, more sales; that easy.
4.- Helping you launch products
Introducing a new product to the market is not an easy task. Increase the number of references, increase our catalogue, ensure that all distribution points have the necessary amount of supply -and analyze what amount is optimal-, decide where we are going to distribute it from… and even design a supply chain capable of responding Quickly to changes in specifications (either to introduce improvements, fill volume spikes or resolve defects). Your logistics operator can help you both design and execute the framework that supports your launches.
The logistics process is an increasingly clear part of the value chain
5.- It makes it easier for you to jump to older customers
When a company that works for other companies grows, the size of its customers often grows as well. And that jump can be very dizzying or even end in failure if you are not properly prepared. These new clients are likely to have new service demands that we have not faced up to now: schedules, quantities, information, technology integration, forecasts, etc. Going hand in hand with a logistics operator used to these requirements will make things much easier for us.
6.- Providing visibility
Closely related to the previous point, the visibility of our supply chain is going to be a more pressing need as the size of our company increases. The more clients, the more suppliers, the more countries, the more intermediaries and, ultimately, the larger our logistics, the more capable we must be of keeping it under control and knowing the situation of our materials, shipments, stocks, etc. And, in addition, to be able to share that information with customers.
7.- Giving a better service
A good service will always make it easier for your company to earn the loyalty of your customers. It is something that happens at all levels, but in the world of logistics it is something that has become very evident to the general public with the growth of electronic commerce, where a bad delivery can ruin the entire shopping experience.
Compliance with the delivery date is the point that most influences satisfaction, but logistics is always looking for new ways to improve the user experience: different delivery models, facilitating the rescheduling of dates and times, implementation of points of convenience, improvements in information systems, etc.
8.- Being more competitive
Improving our processes saves us costs and allows us to face the market in better conditions. The efficiency of our logistics operator will be, in part, our own. In addition, analyzing together with him how we are doing things to detect points of improvement will also shed light on where those opportunities lie. Your competition is already trying to do more with less, reducing everything that does not add value to your product, and you cannot be left behind.
9.- Designing the product and the value proposition
Fast food is one of the best examples that to position yourself in a market, what and how are equally important; not only the product itself, but everything that surrounds it. And many companies have been able to transfer this idea to their own field. The way in which we are able to deliver our product is something that is increasingly valued by consumers and is part of the package that we are selling to the market. Distribution times, our ability to deliver highly personalized products in a short time, the number of points of sale in which we are present or the facilities for returns are inseparable factors in how our product is perceived.
The vision of logistics as a mere cost to add to the production of the product is already very far away. Its inclusion as a strategic and differentiating element that helps companies stand out already seems unstoppable.