The 6 Best Methods Small Businesses Can Improve Their Logistical Approach

Last Updated: 

September 8, 2023

Advancing your business in the right ways is about ensuring you get a clear view of the bigger picture. Running a small business can be a logistical nightmare because of the many moving parts, and this is why we need to recognise that logistics is an ongoing concern that we can remedy. Many small companies don't understand the value of logistics, which is why you need to bear in mind some of the following:

Key Takeaways on Methods Businesses Can Use to Improve Their Logistics:

  • Keeping Track of Your Stock: Regularly monitor your inventory to understand the flow of orders and stock levels. Being aware of what's in storage helps in anticipating demand, especially during peak seasons. Use tools like pallet collections to manage stock effectively.
  • Provide Services Customers Want: Prioritise customer satisfaction in your supply chain. Offer services that cater to customer needs and streamline communication methods, such as automated email responses or chatbots. Regularly update customers, especially during disruptions, and consider alternative delivery methods when necessary.
  • Increasing Inventory: While managing costs, consider ways to increase inventory. Stock up on discounted items, rent additional storage space, or outsource storage and shipping solutions. A rolling stock approach can help maintain competitiveness.
  • Stay Updated with Changes: Be proactive in anticipating disruptions in the supply chain. Research alternative suppliers or products to ensure continuity. Flexibility is key, especially in industries with rapid stock turnover, like restaurants.
  • Use History to Predict the Future: Use sales forecasts and historical data to anticipate future demands and challenges. Learn from past mistakes and successes, both within your business and from observing competitors. Adhering to a well-structured business plan can help navigate logistical challenges.
  • Monitor Your Expenditures: Keep a close eye on your finances, especially within the logistics and supply chain. Understanding the costs associated with each component, from products to services, can help in making informed decisions and identifying areas for potential savings.

By implementing these strategies, small businesses can enhance their logistical approach, ensuring smoother operations, better customer satisfaction, and overall business growth.

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Keeping Track of Your Stock

Your inventory is vital because when you get to grips with the level of orders that come in based on the outgoings, a certain amount of rolling stock will help you react in the right ways. There are many supply chain shortages in the world, and this is why you need to understand what you have in stock but also know when it needs replenishing. 

Having a pallet collection is going to ensure that you house the stock effectively, but you need to get to grips with what is in storage at any one time. One of the toughest things is being caught off guard when there is an influx of orders for a popular item or during peak season, and small businesses just starting out need to anticipate what these peak times will be. 

Provide Services That Customers Actually Want

In the complex world of the supply chain, customer satisfaction can easily fall by the wayside. Small businesses have an ongoing battle to deliver stellar customer service because they are firefighting. You need to ensure that you deliver services that customers actually want, but also recognise that when you are dealing with logistics, there are ways to make things easier in managing customer expectations. 

For example, you could increase the ways customers can communicate with you; you could automate many functions of your business, like an automated email response or chatbot; you can also provide more information on deliveries on your FAQ page. Of course, when it comes to delivering great customer service if we can make the customers more autonomous by giving them more information, which takes the pressure off us, however, the customer seldom reviews the small print. 

You may benefit from sending out regular emails, especially during times when things are more difficult. For example, the ongoing postal strikes in the UK are causing havoc with businesses delivering to their customers, therefore, you may want to opt for a courier if you are delivering items to customers’ doors.

Increasing Inventory

It is not always possible when costs are high. You've got to factor in the costs of every little component, for example, physical labour, time, and how much space you have got. But increasing inventory can be done in effective ways. For example, you could stock up on items that you are offering at a discount; you could rent extra space; you could also outsource storing or shipping solutions. Ensuring that you are increasing your inventory where possible may seem counterproductive, especially if your finances are fair to middling. But we've got to remember that this idea of rolling stock is what will keep us competitive.

Being Up to Date With Changes

Dealing with logistics, especially when you are one part of a long supply chain, is tough. There can be disruptions in the supply chain at any point, and depending on where you are and the industry you are operating, there can be a number of major disruptions. For example, the aforementioned postal strikes in the UK. If you anticipate a shortage, you can find alternative products or alternative suppliers. 

It is important that we remain flexible whether a supply chain is unpredictable or not. There will be times when products are available at short notice and researching alternative suppliers in different locations can help you to maintain your stock. This is especially true for businesses like restaurants where they need to maintain a level of ingredients that dissipates rapidly. It s not always possible to predict disruption, but when we keep up with the latest developments, this sense of being proactive can make a massive difference to the quality of our service.

Build a Strong Team

In the ever-evolving landscape of business logistics, having a team that is adept and well-versed in the latest trends and technologies is indispensable. Partnering with expert logistics recruiters can be a strategic move to source professionals who can steer your logistical approach towards efficiency and innovation.

As you work to streamline your logistical approach, it might be beneficial to seek expert guidance to navigate the complexities involved. Consider exploring business development coaching to gain insights and strategies that can help you optimize your business operations effectively.

Use History to Predict the Future

Sales forecasts are vital to ensuring we can be more competitive in any business. The toughest thing about being a competitive business in the modern day is that things are progressing at such a rate that it can be tough to predict the future. 

It may seem difficult to achieve, especially as a small or potential new business, but you can learn from the mistakes that other companies have made. This is partly to do with keeping your ear to the ground, but also ensuring that you have an effective business plan in place. You wouldn’t have got this far without the support of your lender, so ensuring that you stick rigidly to that business plan will help to mitigate any logistical disaster.

Know How Much You Spend

As simple as it sounds, many small businesses seldom keep a solid track of their finances. If you want to be competitive within a supply chain or any form of logistics, you've got to watch the pennies. It requires a very simple philosophy, but knowing how much to spend on every part of your logistics or supply chain will ensure that you are keeping your ear to the ground. 

When we struggle with logistics and don't know how to improve upon what we've got, keeping track of the pennies makes a massive difference. When we start to understand what we're paying for in terms of quality, and if we can easily go to another supplier for a cheaper cost that does greater service, this makes a massive difference to the overall quality of our business. 

Small businesses can find themselves struggling to keep afloat because they are constantly chasing their tail. Understanding what you are paying for and taking the time to do this will ensure that you know what you can do to improve your logistics in the long term.

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