Did you know that logistics and transportation management is a 6.7 billion dollar industry?
As the world continues to shuffle goods and resources around, that is only going to get bigger. If you have been thinking about starting your own logistics company, you are in the best possible place.
Starting a logistics company can be daunting, but it doesn’t have to be. In this article, we will provide you with all the resources you need to get started and make your dream of starting your own logistics company a reality.
We have everything you need to start, from business plans to market analysis to pricing schemes. So what are you waiting for? Start your journey today!
The Logistics Industry: What It Is and Where It’s Going
With steady growth expected over the next decade, the logistics industry is booming. If you want to get into this lucrative field, there are a few things you need to know.
First, what is logistics? Simply put, it’s moving products from one place to another. This can include everything from transporting goods by truck or rail to shipping them through the postal system.
Second, where is the logistics industry going? The International Maritime Organization (IMO) has predicted that global trade will grow by 5 percent yearly. That means more goods being shipped worldwide and more companies trying to get their hands on those shipments.
Third, what does this mean for you as an aspiring logistician? It means plenty of opportunities for those with initiative and determination. The best way to start your career in logistics is by getting licensed and certified. This will show prospective employers that you’re serious about your skills and know how to adhere to safety standards.
With logistic business in mind, health and safety play an essential role in maintaining the efficiency and effectiveness of the whole process. The guidelines and regulations set by the local administration need to be followed in logistics to get the business up and running.
Safety factors that could be considered are fire safety, workplace temperature maintenance, medical care, regular machinery upkeep, and providing protective gear to employees. While some of these factors will require an employer to set strict rules in the logistics industry, issues like accidents and injuries could be avoided by equipping workers with helmets, face shields, boots, and gloves (go to website that sells these products for more information).
Starting a logistics business can be a little more complicated than retail or other types due to the standards and regulations that you may have to follow to get the company registered and approved by the government.
The Business of Logistics: The Foundations of an Enterprise
Here are four essential foundations you need to build your logistics company:
- Proven, reliable supply chain management systems
- Advanced transportation capabilities
- Robust shipping procedures and tracking systems
- Effective inventory management
Sales and Marketing
Marketing your company is one of the few most important steps; this is what boosts your sales across the globe. Here are a few things to consider:
First, you’ll need to identify your target market. Whom do you want to serve? Large corporations? Small businesses? Local distributors? International buyers? Once you have a list of potential customers, it’s time to develop a sales strategy. Do some market research to find out what your competitors are doing and how they sell their products. Then create a plan that suits your company and your target market.
One important factor in marketing your logistics company is customer service. Ensure your staff is well-trained in handling customer complaints and providing clear shipping order instructions. Also, keep an eye on trends in the industry – if there’s a new technology that could improve customer satisfaction or reduce costs, take advantage of it!
If all goes well, your business will soon be thriving! Keep track of your progress by regularly reviewing statistics such as weekly sales figures and cost per unit shipped. And don’t forget: without good marketing and strong sales teams, even the best logistics company couldn’t survive long…
How to Run Your Logistics Company Effectively?
Running a logistics company can be a complex and challenging process, but with the proper planning and execution, it can be an incredibly successful business.
First and foremost, you must have a clear business vision. What do you want your company to achieve? What are your specific goals? Once you have a solid idea of what you’re after, you can begin developing operational plans to help you reach those goals.
One of the most important aspects of running a logistics company is ensuring efficient inventory management. It would help if you had enough inventory on hand to meet customer demand and keep enough in stock to avoid costly shortages and bottlenecks.
Prior to sending out the stored articles in their respective packages, there would need to be facilities in place to ensure that they are all protected and secured. It requires proper security measures, such as tracking and tracing systems, safety locks for smart lockers, CCTV cameras in the parcel hub, and hiring personnel to monitor the handling process.
Packaging is another area that needs to be taken care of by budding logistic companies. Reason: No one would trust you with transporting their goods if you have proven incapable of keeping them safe and in their original condition during the move. This marks the importance of having proper packaging solutions in place to avoid damage to the products. To go about doing this in the right way, begin by choosing the right size of the pallet so that your shipment does not appear to be overhung on the edges.
This should be followed by stacking the product boxes in columns and distributing the weight evenly across the pallet. For added security, it would be recommended to keep the top level of the pallet flat. This can reduce the loss or damage to cartons. Label the pallet properly and finish the process by securing the shipments on the pallet by using Packaging Chimp pallet wrap or a shrink wrap of the same quality. Make it a point to use the wrap around the base of the pallet. Use a strap to hold all the stacked products together.
Another critical factor in running a successful logistics company is effective communication between all involved parties: suppliers, manufacturers, distributors, customers, and employees. Everyone must be aware of the current state of inventory and order processing to make timely decisions.
Maintenance of effective communication also means the timely flow of payments between the many entities involved in the business. First, the methods used to collect transaction payments from client companies, customers, and other receivers should be ascertained and accounted for.
The methods commonly used by end consumers would mainly include Cash on Delivery, online payment forms, and card transactions which can be easy to collect and keep up with. When it comes to client companies, however, there may be a slight variation in payment methods. These would include pre-pay, and collection after freight collection. Freight collect means that “the charges are billed to the consignee or the person receiving the shipment” instead of the person or entity placing the order.
Also, there can be outstanding invoices that may need clearing. This task should ideally be handled by a freight factoring company as they would have the necessary tools to enable smooth payment of dues owed. Not only would the payments be completed quickly, but it would also simplify accounting processes. Finally, as with any other business, the disbursement of payslips should be conducted on a timely basis to ensure worker productivity and efficiency.
Last but not least, maintaining good relationships within the confines of the business as well as with your competitors is critical for any business. Please keep an open line of communication within the organization and with competitors so that you can learn and adapt to compete with rival companies effectively.
As rewarding and lucrative a venture as it is to start a logistics company. However, it is not easy – there are a lot of factors that need to align for success. In this article, I have outlined the steps necessary to start, from identifying your business goals to building your team. If you follow these tips, you are guaranteed to make progress and reach your business goals. Thanks for reading!