Why Using a Logistics Firm Can Grow Your Business

People don’t often consider logistics to be an interesting topic.

But getting logistic right can make or break your business.

Logistics may be viewed as a way to get products from point A to point B, but there is much more to it than that. For a lot of businesses, getting the right fleet management company can be the difference between delivering on time and within budget, or being late and missing deadlines.

Logistics are more complicated than ever, because of technology and global trade. To stay competitive, you need to use the latest tools and techniques for logistics.

If you’re recovering from a financial setback, this article can help.

Consider these ideas.

Contents

Outsourcing

Every business knows that outsourcing is an area where firms can save the most money. Outsourcing logistics is one service where third party logistics (3PLs) make a significant impact on the bottom line. Of course, the costs will depend on the services you choose, but you can save money in these areas:

Warehousing
Reverse Logistics
JIT delivery
Fulfillment

3PLs find the most cost-effective way to manage all of these tasks, and offer them as a complete service.

Big Money

If you consider the entirety of your supply chain, shipping might not seem like the most significant component.

However, the shipping industry is a trillion-dollar industry. There has been a sharp increase in revenue as people increase online purchases. As a result, more businesses are willing to increase spending on fast and reliable shipping firms.

If you’re considering a career as a freelancer, read this.

Sustainability

Logistics firms are moving toward a more sustainable business model.

Trucks, which are still the most-used shipping method, are becoming more environmentally friendly. When you combine that with a more efficient supply chain, there will be, by default, fewer emissions.

Types

There are more different types of logistics than you might think! There are 1PL, 2PL, 3PL, 4PL, and 5PL. The PL stands for party logistics, and the most common is 3PL. In a typical 3PL working relationship, the 3PL finds ways to make the supply chain more efficient, while the shipper maintains control of the supply chain.

Big Employment

When an industry is worth a trillion and growing, the employment is going to increase. In the US alone, there are over 5 million people employed in transport and warehousing. The industry is growing at a rapid rate, and employment is increasing.

Wheels Win

There are more options now when it comes to shipping, as we see airplanes and drones come into their own.

However, these services aren’t a complete replacement for trucks. Trucking as a standalone is worth $721 billion as an industry. And it currently accounts for 63% of all freight in some areas. Trucks are one of the most affordable and reliable ways to ship goods, and with strides being made in sustainability, they are an attractive option.

Do Your Homework

Before you hire a logistics company, do your homework.

Your customers need to receive a quality product that is safely delivered on time. The logistic company represents your firm, and they have to be competent and professional.

Find a reliable logistics company, and operate your business with confidence.

Good luck!

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/