4 Reasons Your Company Needs Logistics Rather Than Just Shipping
Many people think of logistics and shipping as the same thing. But, in fact, logistics can be a big improvement over just thinking about shipping. Why? Here are a few ways that logistics planning can make your business run smoother and more profitably than being a simple shipper.
1. Logistics Planning Is All-Inclusive
Shipping plans occur late in the product cycle for many small businesses. They are something businesses give thought to once the products are nearly ready for customer use.
When you start using logistic services, though, it incorporates all phases of product development and manufacturing. It might include, for example, a cloud-based inventory management system that allows you to track exactly when you need replacement parts and have them ordered and shipped automatically.
2. Logistics Companies Coordinate Efforts
As your business or market grows, shipping becomes more complex. You may need to use land, rail, air, and ocean freight services. Goods often need to cross borders and you may be working with international companies. Your shipments—both coming and going—may be delayed by international conditions, customs issues, and distant natural disasters.
The best way to deal with all these challenges is to have a network of providers all across the globe, and logistics companies specialize in this. Experienced companies handle all these different parts of the transportation puzzle so you don't have to.
3. Logistics Planning Is Proactive
Does your business plan ahead for emergencies, delays, excess costs, or problems within its supply chain? Chances are, if you're still focusing just on "shipping", you aren't being as proactive as you could.
Logistics builds a network of services and providers to help ensure that problems are minimized. A good logistics company might analyze your dimensional versus actual weights and recommend a change from air to land freight (or vice versa) for efficiency or money savings. Because their services are varied, these connections are already in place to serve you better.
4. Logistics Services Are Scalable
Any company that wants to grow needs to have systems in place that can grow with it. If you establish a relationship with a global logistical partner early, you already have the network to do so. Global transportation companies have access to everything from individual owner-operator trucks to warehouses and international cargo ships. You can use as much or as little as your business demands at any given time.
As you build your business, the value in a true logistics service will become clearer. Whether you want to grow into new areas, reduce problems in your supply chain, or outsource the worry involved in moving goods, logistics operators can make a difference. Learn more about this new mindset and service by meeting with a provider today. Contact a logistics service for more information.