- Transportation (most commonly outsourced to a logistics company)
- Inventory Management
- Warehousing and Distribution
- Material Handling
- Packaging
Action Steps
The best contacts and resources to help you get it done
Seek out a third-party logistics provider (3PL)
The trend is towards companies focusing on their core competencies rather than being "jack of all trades". Consider outsourcing to a logistics company (a “third-party logistics provider” or “3PL” as they’re commonly known) so that you can focus on growing your business, not minute details of product delivery.I recommend: You can outsource everything or shop for logistic services a la carte from freight payments and auditing to warehousing at ITS Traffic Systems Inc. Total Quality Logistics is another 3PL with a reputation for taking care of its employees in an industry where high turnover is the norm. Review Business.com’s directory to find a logistics company.
Make your logistics provider industry specific
There are logistics companies and carriers that specialize in every industry from clothing to wine. Search for logistical solutions within your industry to make sure that your product gets to your customers in the same condition that it left your facility.I recommend: If your items are perishable, fragile, or oversized, find the best shipping method and get a quote sent to you via email at Freight Center.com.
Team with partners on logistics and transportation
Talk to vendors and customers to find out what type of logistics technology and services they currently use. Logistics companies base prices on volume, and you may want to team up with your partners to maximize economies of scale.I recommend: You can implement Trading Partner Integration software such as Red Prairie's.
Improve logistics efficiency with electronic data interchange (EDI)
You can do anything from gathering customer requirements to providing tracking information with Electronic Data Interchange (EDI) software.I recommend: 123 EDI makes software exclusively for small businesses that can easily be integrated with QuickBooks. Companies such as Logistics Planning Services (LPS) will develop software exclusively for you and your partners. Check Business.com’s directory of electronic data interchange solutions vendors.
Use small business logistics services from UPS, FedEx or DSL
If you aren't in a position to purchase expensive hardware and software to manage your company's logistics quite yet, start with the Web. FedEx, UPS and DHL all have small business centers that can help.I recommend: Sign up for small business services at DHL or UPS or FedEx to arrange for shipments and pickups, track deliveries, estimate freight costs and more.
Network for minority- and women-owned businesses
If you are a minority or women-owned business (MWBE) search for logistics companies and freight carriers that are also MWBE certified.I recommend: Start at the MWBE directory.
Take a page from big business
Giant retailers use a system called Vendor Managed Inventory (VMI) to manage multiple vendors and/or logistics companies. So can you.I recommend: If you carry a variety of items from more than one vendor, make sure you never stock-out by having the vendors manage your inventory electronically or on-site. Learn more about the VMI method at VendorManagedInventory.com.
Stay current on the logistics industry
Companies need to stay apprised of the latest and greatest industry news including rules and regulations and technology like Radio Frequency Identification tags (RFID) and Global Logistics.I recommend: To learn more about the logistic industry than you ever thought you wanted to know, go to LogisticsMgt.com.
It's reversible
Making returns painless for customers is a good way to build loyalty.I recommend: You can manage reverse logistics yourself, or hire a logistics company to provide inspection and repair, such as Insite Logistics. Find reverse logistics companies on Business.com.
Tips & Tactics
Helpful advice for making the most of this Guide
- Don't promise anything through Marketing and Sales that you can't deliver. A successful logistics strategy is just as much about getting the customer the right product as it is about getting it there on time and in one piece. Be sure to monitor the service level of the logistics company you choose.
- If you will be sending your customer an order from multiple vendors, decide whether you will send everything from one point at one time or through multiple shipments and locations. Whoever is shipping the complementary product might skimp on his logistics costs, and you don't want to have to pay to replace lost or damaged items due to his penny-pinching ways.
- As fuel costs rise, so do shipping costs. Use the fluctuating price at the gas pumps to decide when its time to reevaluate the costs of your company's logistics provider and/or strategy.
- It is important to incorporate your customers' feedback and industry trends for successful logistics management. Soliciting feedback from your customers on your website or through check-up calls is a good way to find out what needs to be tweaked. Following up with customers also allows you to further evaluate the quality of the service provided by your logistics company.
- If you're just starting out, try to at least to correspond and confirm with your logistics company all transactions, via email, to keep a record of deliveries and issues.
the Logistics page at Business.com
Access America Transport
Total Supply Chain Management, warehousing, truckload, rail-to-truck, intermodal, air freight and LTL solutions.
www.accessamericatransport.com
Total Supply Chain Management, warehousing, truckload, rail-to-truck, intermodal, air freight and LTL solutions.
www.accessamericatransport.com
Logistics Software Directory
Compare logistics software using Capterra's free, comprehensive directory.
www.capterra.com/logistics-software
Compare logistics software using Capterra's free, comprehensive directory.
www.capterra.com/logistics-software
Premier Pick and Pack Services in Canada
Premier Distribution Group is a full service distribution center offering pick and pack, warehousing, cross docking and assembly with great rates.
www.premierdistributiongroup.com
Premier Distribution Group is a full service distribution center offering pick and pack, warehousing, cross docking and assembly with great rates.
www.premierdistributiongroup.com
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