When you consider that the global logistics market is set to achieve a cumulative value of $15.5 trillion by the year 2023, you begin to understand just how important this is for product-oriented firms.
Despite this, logistics is a business element that is often overlooked by startups, and this can prove to be a huge detriment when trying to deliver goods to distributors and customers alike.
In this post, we’ll consider this in further detail, while asking how startups can successfully focus on and plan their individual supply chains.
1. Accept the Cost of Creating your Supply Chain
As a starting point, it’s imperative that you accept the underlying cost of building your supply chain. By failing to plan from the outset and factoring in the cost of producing and shipping your products, you run the risk of creating an inefficient delivery that is far from cost-effective.
One of the issues is that start-ups have limited resources, while they also tend to underestimate the importance of logistics. This is a huge oversight, however, particularly when you consider that failed deliveries alone cost UK firms around £780 million last year.
So, when considering logistics as part of your business plan, strive to measure the costs and against the potential long-term gains and the core value that a supply chain plays in your venture.
2. Create a Viable Network of Partners
When it comes to managing your supply chain, it often makes sense to minimise the range of partners and logistics specialist that you’re required to work with.
For businesses that ship their products to global markets and distributors, this ideally means partnering with service providers that have access to countries throughout the world. This is particularly important when dispatching products in bulk to businesses and distributors, as this type of shipment is often the most complex and boasts significant value.
By forging this type of partnership, you can simplify your supply chain and make it easier to manage over a sustained period of time.
3. Build your Supply Chain Around the Customer Journey
On a final note, you need to build your supply chain around the type of customer journey that you want to offer.
After all, this is arguably the most important building block of any successful supply chain, and one that will influence everything from cost to the core shipment options that you provide to consumers.
This type of approach not only forces you to focus on the speed and accuracy of your delivery, but it also creates a long-term outlook that can deliver genuine savings.
More specifically, it minimises the risk of potentially costly returns, which can significantly eat into your profits when products are sent back in bulk.