3 Important Tips To Improve Your Logistics Strategy
’The sustainability of your business isn’t just based upon acquiring new customers, but also on your ability to maintain a loyal customer base who buy from you time-to-time’Every business owner knows that the cost incurred to acquire a new customer is always way more than to keep an existing one To create a loyal customer base it’s essential to build a reliable & best logistics strategy. Here are 3 tips to build a consistent logistics framework1. Preparation is the Key:
Managing your inventory and choosing right logistics partner are the most important steps to create the best logistic strategy for your business.It seems obvious but if you don’t have the products that you’re selling to your customers in the warehouse, sooner or later you are going to disappoint them. Hence, whether you procure and manage your supply in-house or outsource it, you need to have this element under complete control.The best way to manage an accurate inventory?
- Tracking your goods: For small business owners, it is essential to master the art of supply and demand, which is not any easy thing.
- Regularly reviewing your stock forecasts and committing enough time to calculate safety stocks.
The second step to creating the best logistics strategy is to choose consistent logistics partners & tools. Many startups or smaller businesses prefer to keep logistics as an in-house function because involving a third party agency or a vendor means additional cost for the business.According to our Bada Business Professor, Mr. Harpreet Singh Malhotra - Managing Director, Tiger Logistics (India) Private Ltd, budding entrepreneurs or business owners should focus on their strengths which is the product and should outsource the logistics service at the initial stage of business.Outsourcing the logistics service helps in the following ways:
- Focus can be directed towards the core business and product
- Taking advantage of the expertise of the logistics partner
- Bringing economies of scale in the business
- Cost-effective and timely solutions
To choose the right logistics partner for your business, you should consider the following points:
- Product Knowledge:
Your logistics partner must have the essential knowledge about your product.
- Reliability of the partner company:
Your logistics partner needs to be someone, you can completely rely upon. This can be evaluated on the basis of the following:
3. Offer a wide range of options to your customers
Last but not the least, to create the best logistics strategy you need to offer a wide variety of options to your customers.Flexibility is an absolute must nowadays. Today the customers are me-centric and expect the business to provide the options that fit in with their lifestyle and needs. And when it comes to logistics & order fulfillment, this is very relevant and crucial.Many customers discontinue and leave their shopping cart when choosing the delivery option. Why?Because customer haven’t found the delivery option they wanted. Keep in mind, as a business you have to consider and offer both delivery/pickup options and the speed at which these functions take place- Many customers want a door to door shipping option while others feel that a pickup delivery option is better and works for them well.
- To maintain an edge over speed, you can offer regular, express and even same day or next day delivery services.