How to Improve Your Small Business Logistics
If you would like to make the most out of your small business, offering delivery for clients might be a good way of adding value. Unfortunately, this will increase your costs per order, so it is crucial that you make sure everything is working like clockwork. If you don’t trust your customers with the precious product, or would like to make it easier for them to get their order, this can be a great point of differentiation for your small business.
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Have a Tracking System
It is important that you know where your drivers are, so you can make the most out of your estimates and work out how to optimize your supply chain. At the end of the day, your goal should be to provide the best possible experience to your clients at the shortest period of time and at the lowest cost. You might also want to implement a system using a Lytx telematics company to improve your logistics.
Use Inventory Management
It is also important that you stay on top of your stock and find out what you have and what you need to order. There is nothing worse than finding out that you don’t have the item your customer ordered online. If you are using a shopping cart system, this can be linked to your inventory software, so you can make the most out of business intelligence and data.
Improve Your Fuel Efficiency
When you allow your employees to drive your vehicle, you will need to ensure that they have the right knowledge and skills to do so safely. You might want to enroll then in a course where they can learn how to use less fuel by planning ahead and using smart driving techniques.
Consider Outsourcing
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When you realize that you are already spending far too much on your deliveries, and sitting in the van and in traffic is not the best use of your employees’ time, you will need to compare the cost of managing your supply chain yourself and outsourcing the process. You might choose to trust a company with everything; from tracking to warehousing and recording shipments, or just get the delivery taken care of.
Optimize Your Lean Systems
If you haven’t heard about lean manufacturing, you will need to update your business knowledge. Many entrepreneurs think that the principles are only relevant to big plants, but this couldn’t be further from the truth. In fact, implementing the principles will help you protect your business and your customers at the same time. You can eliminate the waste of time and money, as well as resources. Lean systems will help you identify risks in your business before they would turn into disasters and cost you your reputation or money.
Logistics optimization is just as important for small businesses as big ones. You have to reduce your costs and improve the value you provide to your customers. Make sure that you keep an eye on your costs and your inventory and implement systems that will improve your overall productivity.
