The word logistics is defined as “the in-depth coordination of complex operations,” and it is generally taken to refer to the process by which products and supplies are efficiently moved across a geographic area. Sometimes that area is a warehouse, sometimes it’s a city, and sometimes it’s an entire nation or continent.
Logistics also often refers to inter-company cooperation, as well. Basically, if a business is having trouble getting supplies from another company, or if the business is having trouble keeping track of how much of a certain thing it needs and where it needs to send those things, that company has a logistical problem. They may hire a shipping technology service like AuptiX to help handle their shipments in an efficient and cost-effective matter, but many companies make the mistake of thinking they can handle these tasks themselves and it ends up being more expensive and less efficient.
Logistics is a little like the veins in the body that carry blood from organ to organ.
It’s a small thing, something we don’t often think about, but it is actually vital to the survival of the person—or in this case—the company. And just like how the efficient flow of blood in a person is vital to health and growth, the efficient flow of supplies and products is vital to the growth of any business and a small business in particular.
How are logistics important to the growth of a small business?
Small businesses are particularly susceptible to logistical problems. Large corporations are generally able to handle their logistical problems in-house. Imagine a large multinational corporation. It likely owns the warehouses in which its products are stored, the factories in which the products are made, and the trucks in which the products are transported. Any problems in this supply chain are easily handled in-house, and all of the different pieces are aware of one another and how to best interact with one another.
Not so with the small or fledgling business. The small business must often order its supplies from another company with no control over how those supplies are produced and transported. Often times, there are several different companies involved throughout this process.
Imagine a small business in Canada or the United States that sells coffee mugs online.
This small business will not take physical control of their product until it arrives at its destination. They’ll likely order their product from China or elsewhere, have that product sent internationally by freight shipping, transported from the port of deposit to them, and eventually stored in a warehouse they likely will not own, either.
At each of these junctures, there is the opportunity for error and mistake.
Why is it important to have a logistics partner?
Each logistical error or problem may cause a delay in the company receiving their product. When delays are unexpected and not calculated into order delivery times, not only are customers dissatisfied but they are more likely to get their products from a different source next time.
In short, a company’s inability to deliver their product on time is directly linked to customer satisfaction, which is in turn linked to the likelihood of repeat business and customer referrals, and in turn linked to the small business’s ability to grow.
In a worst-case scenario, a bad logistics problem can actually lead to decreased small business growth and eventual bankruptcy.
All of these reasons are why it’s important for any company that requires complex shipping schedules to associate with a dedicated logistics partner who can focus all their energy on ensuring no logistical problems crop up and slow down the flow of business. You can also consider studying supply chain logistics management by checking out various online courses and tutorials. This way you will also have an understanding of the subject when working with partners.
The more efficient your logistics, the more money you can make—let a good logistics expert help spur your small business growth.
