One of the fundamental aspects for the success of an SME is the correct management of logistics. If this is not taken into account from the beginning, problems can arise later that are much more difficult to solve. For this reason, in this post we talk about all the aspects that must be taken into account for the logistics to work well in our company.
What is logistics in an SME?
The first question we have to ask ourselves when we talk about logistics in our company is: what do we mean by it? And above all, the definition of this concept is essential to be able to manage it in the best possible way.
Logistics are all the operations carried out so that a product can reach the consumer from the place of extraction of the raw materials, through the place of their manufacture, as defined by business education.
In other words, logistics is the set of processes and procedures that allow us to get a product from its place of origin to its destination.
Aspects to consider when setting up the logistics of your SME
In order to properly set up our logistics, we need to take into account several aspects, from the warehouse to order management, shipment tracking, the transport company you have chosen, delivery times, etc.
The first point to consider is the quality of your product and the condition in which it reaches the customer. Starting with a good product, you have more chances for the logistics to go well.
For everything to go well, we need to know the type of product we manufacture or market, the dimensions, whether it is perishable, the weight, etc. If your product is small in volume, not fragile and does not require anything special to transport, how e.g. clothing accessories, this should not normally be a problem for most shipments.
The difficulty lies with products such as household appliances or furniture, which require the assistance of two people to transport, fresh products such as fish, flammable products that must be transported properly, as not all transport companies can deliver your product in the best possible conditions.
When creating logistics guidelines, it is very important that we take the delivery time into account. In other words, the time that elapses between the time the product is shipped and when it reaches the customer.
The availability of the product must be taken into account, ie the number of units that can be immediately available for shipment to the customer, the period in which the orders can be placed, the production capacity, etc. The most important thing is to avoid stock breaks, the delivery times may be extended.
Delivery times must be well defined as they will be a crucial factor in the success of the company. Very long deadlines can lead to lost sales, but when they’re short and you can’t meet them, it can have an equally negative effect.
The ideal is to set feasible deadlines and if the deadline is long for reasons of product (if it is made to measure) or location (an international shipment is not the same as a national one), it is important to communicate it to the customers to determine expectations.
There are many transport companies that can be contracted to carry out the logistics process. When choosing, it is important that the transport company has a good reputation in order to be able to fully trust it. This way we don’t have to have a problem when it comes to getting our product to the customer.
It is convenient to have several depending on the shipping destination and the type of package to be transported and not to rely on a single company in case the main carrier fails for some reason.
However, having many transport companies may not be optimal when it comes to organization. Therefore, it is important to know if each of the companies you work with can integrate a software with your CRM, your online store and if the process of ordering the shipping is easy.
Costs are a determining factor in the logistics of our company. Therefore, we have to evaluate both the price of the product and the payment term.
A good solution to the inconvenience of hiring transport companies directly is to choose a logistics platform such as ship-quik.comthat have a simple platform that is easy to integrate with online stores and that allow you to access many transport companies with a good reputation such as UPS, DHL, Zeleris, Seur, GLS or Correos.
In addition, without your company having to ship large quantities, they have more competitive prices in all companies because of the agreements that they usually have with transport companies.
When choosing a logistics platform, it is important that we have all the necessary services for our SME. This way we don’t have to worry about anything and everything is controlled. In Ship Quick you can compare the rates of carriers depending on the type of shipping, type of services you want to provide, product, etc., to always choose the optimal option for each order.
One of the most important aspects of managing our business is customer service. In this way, if an unforeseen event occurs that does not allow to receive the order on time and in the agreed terms, the customer has a deadline to return it. To avoid these complications, it is important to have the appropriate logistic platform that allows us to detect possible problems and resolve incidents.
As you can see, logistics is a fundamental part of running any business. If it is not managed properly, problems arise that are very difficult to fix. It is therefore important that you consider all of these aspects when establishing your business processes.