Logistics can go both ways, your business can run like a well-oiled machine, or...it can be more like a machine that needs to be serviced. Sometimes the mistakes being made are simple, and with a few small adjustments, your logistics management is ship shape. Other times, the mistakes being made are bigger, and enlisting a logistics team might be the best solution. We hope to be able to help you understand the difference and to know when to sound the alarm for SOS.
Lack of Communication or Visibility in Logistics
The demand for visibility has drastically increased in recent years. Customers and consumers today want to know what happens to their product. Whether it be an expectant Mother who just purchased an item for her soon to arrive baby, or a lineman who needs a part for his machine, or maybe a stock manager filling their shelves...they all have something in common. They want to know what is happening with their stuff. They want to know when it will be in their hands. When they lose this visibility, or it isn’t available to them, they are more likely to choose a different logistics provider. In terms of purchasing, most often, consumers want an exact date of arrival and will choose a product with a guaranteed delivery date even if it is more costly. Keeping your clients informed, and staying accountable for delays or problems if and when they arise is essential. If your logistics team isn’t able to provide this visibility for your clients, there is definitely room for growth and improvement.
Unable to Scale your Logistics
Growth in your business is amazing and should be celebrated, but don’t let it bring you down. As you and your company expand, so will your logistics needs. The ability to have logistics that stretch when needed and shrink at other times can be a balancing act. Seasonal peeks are a great example, of temporary growth that will need to be planned for. Sometimes, the best way to fix this problem is through the help of a third-party logistics provider. They can help fill in where your team is lacking, and you and your clients will reap all the benefits.
Outgrowing your In-House Logistics
One of the most common mistakes made by successful and expanding companies is knowing when you have outgrown your current in house logistics team. You may have noticed some of growing pains, but dismissed them. Take note if your logistics management team seems overwhelmed, or frustrated. This could be a sign that the resources are not available to them. Sometimes, new technology can help ease some of the stress. Another symptom of growth could be a shortage of space. You might have tons of inventory orders being filled, but nowhere to house it. In some cases, this is a great time to build bigger or enlist the help of a 3PL warehouse. The inability to meet delivery dates can be another point of stress. You may have noticed that your team is no longer meeting their deadlines. This could be a hiccup in management, or it could be an indicator they are stretched too far. Once you have decided if an overgrowth is a problem, it's important to decide what you will do to fix it. Some choose to expand and build bigger, while others choose to hire a logistics provider to work with.
Great Logistics are like the backbone of any business. If your logistics are weak, most likely your business will not stand the test of time. Here at American Manufacturing Solutions, we work hard to provide Logistics that will keep your business standing tall and proud so contact us today.