Did you know that 20% of small businesses fail in their first year? If you are a small business that is looking to have a business run efficiently your logistics strategy can make or break it. We have put together this article to show you how to build an effective strategy to ensure that you are not part of the 20% of businesses that have to close their doors.

1. Key Performance Indicators

Before you begin your logistics strategy you want to identify what your key performance indicators are (KPI). You want to make sure that you look at your customer order cycles, pick-to-ship cycles, dock-to-stock cycles, and the total cost of the entire process.

Tracking these numbers will ensure that you have a solid barometer for how your logistics strategy is performing.

2. Automation

The logistics process can actually be a very drawn-out process with more than one industry in the mix. With so many variables in the equation, it increases the chance of human error. This is why investing time and money into automating everything that you possibly can, will decrease human errors.

You will want to look into reputable companies like https://inloginc.com/ which will step in and help you automate many of the processes that are involved with your logistics strategy.

3. Scale as Needed

When you are a small business you do not want to grow too quickly because it can create chaos within your small organization. You want to think smaller when it comes to logistics and setting up a strategy.

As the business grows then you can add more tools and systems in place to streamline your growth.

4. Outsourcing

Some business owners think that they don’t have the money to outsource or that they are not big enough to outsource yet, but this is not true. Don’t ever hesitate to outsource your logistics.

This can be a long-term partnership with a company that understands how to manage your products and services. Having an in-house logistics team is not always helpful when it comes to increasing your efficiency.

5. Freight

If you have products you want to minimize what you spend on freight and shipping. Finding ways to manage your transportation budget will increase your efficiency. You want to invest in the right custom packaging for what you are shipping and you want to review contracts as your demand grows.

The goal is to not spend more than you need to on your freight services.

Ready to Build Your Logistics Strategy?

Now that you know the right way to go about to build your logistics strategy, you can take action and get your plan rolling. Keep in mind that a formal strategy in place will provide a foundation for the constantly changing nature that comes with being in business.

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