Why Logistics is Important to Your Business

It’s a common thought that business logistics is an issue limited to large corporations with branches all over the world. Smaller businesses, like your mom and pop pizza shop, don’t need to worry about things like procurement, production, distribution, or disposal; or, they are done on such a small scale that logistics aren’t an issue.

The truth is that efficient and well executed logistics is important to all businesses, regardless of size or scale. In fact, the proper use of logistics could even help your business grow.

Why Logistics is Important to Your Business

Whether large or small, most businesses have to deal with procuring supplies, producing a product, distributing that product to customers, and disposing of any waste products. Even if your product is intangible, like a consultant’s ideas, you may still work with tangible items to get the job done.

Additionally, logistics can have an external and internal focus. That mom and pop pizza shop may deal more with external logistics — getting supplies in, and products out to customers, while a consulting firm may have a combination of internal and external – distributing ideas within the organization, and then distributing the end product to the customer.

In many cases, a small business can handle most of its logistics needs in-house. However, if processes become more complex, they may need the help of a third party.

Third-Party Logistics Companies

A third-party logistics (or 3PL) organization, like Unigroup Logistics, works with the business to help identify and meet the business’ logistics needs. Small companies looking to expand would do well to learn more about Unigroup Logistics, and other similar organizations.

For example, if that mom and pop pizza shop decides to open two more locations, a third-party logistics organization can:

  • Help coordinate supply deliveries to all locations, and ensure that they are using the same supplier;
  • Manage production at each site, to ensure that each branch offers the same menu items, at the same price, with the same portion sizes, and the same quality of product and service; and,
  • Ensure that all branches are following the rules and regulations regarding waste disposal.

While the owners of the pizza shop may be able to do handle the logistics themselves, the task will become more complex as they open more branches. After a while they could get bogged down in the minutiae of managing the logistics, instead of focusing on the bigger picture. Also, failure to adequately manage their logistics could cause them to lose a branch, or even jeopardize the whole business.

Additionally, a business that doesn’t get a handle on logistics in the beginning may never have the opportunity to grow and expand.

What This all Means

Regardless of the size of the business, the proper use of logistics can help the business use its supply chain more efficiently, reduce lost time, and reduce material waste, all of which can significantly cut costs and increase profit. Logistics can also make the difference between success and failure.

Whether a business does the work in-house, or goes with a third-party company, it would do well to develop strong logistics for long-term success.

Featured image credit: ShutterStock

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