45% percent of American and European business leaders said that the pandemic affected their supply chains. These logistical disruptions led to up to 4 trillion dollars of lost revenues.
If you want your business to be more insulated from logistical disruptions, you need to consider hiring a logistics firm. Logistics firms help you organize your logistical systems.
They specialize in logistics management and can help take your existing logistics systems to the next level. If you need some logistics management advice check out this guide on how to select the best logistics firm.
Analyze Your Existing Logistics Infrastructure
The first step in choosing the best logistics firm for your needs is to analyze the systems you already have in place. This includes your methods of shipment, your management systems, and your supply chain network.
Methods of Shipment
How you transport your products will influence how your overall logistical systems function. Primary methods of product shipment include:
- Air Freight
- Rail Freight
- Trucking Freight
- Sea Freight
You can use one, or any combination of these methods to get your goods to market. A reputable logistics company will help you decide which works best for you and keep all of these methods balanced.
How are you organizing and managing your existing logistics systems? This will be one of the first questions that a logistics management company will ask you. Having the right logistics management systems in place is very important.
Without them, there will be no accountability for your logistics network. This can lead to supply chain issues and cause logistical disruptions for your business. An effective management system will keep everything flowing right.
Supply Chain Network
How far away is your supplier from your customers? What kind of geographic and topographic barriers does your logistical supply chain need to overcome to link your network together?
A logistics firm will seek to simplify your supply chain network. This means shrinking the gap between your suppliers and marketplaces. It also means streamlining your network into its simplest possible form.
Set Some Logistical Goals
Now that you have conducted a thorough analysis of your existing logistical systems, it is time to set some logistical goals. Are you trying to make your systems more resilient? What level of efficiency would you like to see?
What about expansion into new markets? These are some of the questions you should ask yourself when setting your goals. Once you have made your goals it is time to sit down with a professional and craft a logistics plan.
Analyze Logistical Growth Potential
You are hiring a logistics firm to help you with not only your current logistics strategy but also the future of your company’s logistics. They need to be prepared for your logistics systems’ continued expansion.
This means that they need to have the potential to expand with you or have the existing infrastructure in place to handle your expansion. Get some business metrics about your growth potential to ensure they can fulfill it.
Identify Areas of Expansion
How do you hope to expand and what areas of logistical growth would you like to see? Do you want to go from the national to the international business stage?
Doing so requires expanded air and oceanic freight options. Are your logistics firm candidates capable of managing these new endeavors? Make sure you choose someone who is.
Develop Your Logistics Plan
You and your logistics firm partner will work in tandem when it comes to crafting and carrying out your logistics plan. That said, before you select a partner it helps to have a rough outline of a preliminary plan.
You can use this outline plan to vet your candidates and see who best fits your logistical growth goals. Then you can both sit down together and reassess your plan and rework it as necessary.
Finding the Best Logistics Firm
Not all logistics firms are created equal and some may be better tailored to your company’s needs than others. To choose the best logistics firm for your needs you should analyze the following aspects of your candidates.
You want to find a logistics firm with a solid track record and reputation for reliability. They will be managing one of the most important aspects of your business. If your logistics get botched, your business will fail.
Therefore make sure to conduct a thorough analysis of reviews, customer testimonials, and public records when selecting among your top candidates. This will help you ensure that they will provide excellent service.
If your logistical systems center around cross-oceanic transportation of goods, a logistics firm specializing in rail-freight management would not be a good fit. Check out https://www.headlightsolutions.com/ for a fully capable firm.
Make sure to take into account a logistics firm’s strengths and weaknesses when selecting them for your operations. If your company needs extensive global networks, choose a firm with this capability.
Some logistics firms have a great reputation and the capabilities to handle almost any logistical challenges. These firms tend to charge a premium for their services.
Make sure to consider your budget and what you can afford before choosing a logistics firm. You don’t want to hire someone you can’t afford or choose a bargain option for a complicated logistical challenge.
You don’t want to hire a logistics firm too far removed from your area of operation. Make sure to choose a firm that operates within your geographic region to ensure fluidity in your management processes.
Get a Hold on Your Logistics
If the logistical areas of your business have given you trouble this past year or so, you could use some outside help. Hiring a logistics firm for some quality logistics management tips can help your business stay on top.
Use the information in this logistics management guide to help find the best business logistics partner for your company today. Then, check back with our website to see what other great content is available for you to read.