Logistics is the business of delivering goods or services from one point to the other, efficiently and safely. From the days of the Roman Empire keeping their armies supplied and on the move to Amazon ensuring that you get your package on time, logistics is the lifeblood of any operation.
For any business owner, ensuring that your goods arrive correctly and on time is essential for success in today’s world. Hence it should come as no surprise that an increasing number of organizations have come to recognize the importance of building a reliable supply chain.
With that in mind, we now take a look at some of the reasons why logistics is the future of all businesses.
Your supply chain can be a key differentiator
In today’s world, competition among-st businesses can be cutthroat. Thus, it is because of this that organizations all over the world are constantly striving to differentiate themselves from their competitors.
Logistics and the quality of an organization’s supply chain is one such way for businesses to differentiate themselves. With a well-organized supply chain, goods and services can be quickly and efficiently delivered to the end-user with minimal fuss. This allows customers to develop a sense of confidence which inspires brand loyalty.
Alongside this, in a world where instant gratification is becoming increasingly valued above all things, a business that is able to deliver products and services nearly instantaneously will have the competitive edge on their opponents.
Being a key differentiator, this competitive edge can potentially make the difference between a business’s success or failure.
Efficiency is the new keyword
Previous generations of logistics service providers were heavily reliant on fixed assets such as warehouses and vehicles. However today the nature of logistics has changed drastically. Spiraling operations costs and expenditures means that profit margins are shrinking in turn.
Thus, in order to survive, a paradigm shift is required to help organizations make the most of their existing assets. As we’ve seen by the Toyota success story, businesses need to remain lean in order to be successful, just like a normal sports team, like any of the NBA betting favorites, needs to score points to win games.
Fortunately, in today’s data driven age, business leaders have all the tools they need to manage costs and leverage on the power of information. For example, the data driven approach can allow a factory manager to maximize operational efficiency by relying on the Just-In-Time method.
This approach focuses on keeping inventories to a minimum and working closely with suppliers to ensure that required goods are delivered immediately. On the long-term, this allows manufacturers to slash operational costs in order to keep profits high.
A new breed of logistics providers
The logistics business has traditionally been regarded as one with an exceptionally high-barrier of entry. This can be attributed to the high expenditures related to purchasing assets such as vehicles, land and structures.
As a result, many logistics service providers tend to be either massive conglomerates with a stranglehold on the operation or small-business owners working to get by. However all of this is set to change thanks to the connectivity offered by the internet.
Instead of having to rely upon their own assets, a new generation of entrepreneurs have turned to offering brokerage services to their customers. This is done by bringing together providers and end-users.
This means that instead of relying upon trucking operators or warehouse owners, one would just have to make use of an app that puts one in contact with logistics providers all over the world. A sort of Uber for trucks and logistics if you may.
Known as disruptive technology, this has the potential to reshape the logistics industry as we know it. Rather than spending money and time on expensive contracts with providers, logistics brokers give organizations the flexibility to work with a much wider pool of talent. Besides improving services, this can also significantly reduce wastage and operational costs.
While the technology and infrastructure for such developments are far from maturity, it is clear that organizations will need to step up to improve their respective supply chains. With technology evolving at an ever greater rate, it is exciting to see what the future will hold for logistics and businesses alike.