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Starting an Island Business – Hire a Logistics Company to Maintain Your Inventory Supply: 5 Reasons

April 20, 2018 Comments Off on Starting an Island Business – Hire a Logistics Company to Maintain Your Inventory Supply: 5 Reasons

Logistics companies might be the perfect solution to this problem. The art and science of logistics started way back in World War II as an effort to get the right amount of supplies to the right troops at the right time. Since there was a lot of fighting going on in the Pacific theater, our military had to become proficient in supplying island outposts and ensuring inventory through efficient shipping and air freight. In the time since, logistics companies have built on that early knowledge and have refined their supply and distribution practices until they’re as efficient and cost-effective as possible.

You can take advantage of that seventy-plus years of experience, to manage the product inventory for your business. If you are starting an island business, you simply must hire a logistics company. Here are 5 reasons to hire a logistics company to maintain your inventory supply.

1. Greater Flexibility and Time Savings

By hiring a third-party logistics provider to handle your supply chain, you free up time for you to focus on your business. You can rest assured that your shipments and supply chain will be completely taken care of, allowing you to focus on your greater business strategy. Many entrepreneurs claim they never have enough time to focus on all aspects of their business. As Michael Gerber explains in the E-Myth, you need to have systems in place so you can brainstorm and focus on strategy. By outsourcing your logistics, you’re doing just that.

2. Take Advantage of Logistics Company’s Bargaining Power for Cost Savings

Logistics companies broker shipping to a number of freight carriers. Due to their experience, and the size of their orders (since they are likely managing more than one account) they have huge bargaining power with freight companies. This translates to greater savings and better terms for you to ship your goods.

3. Greater Control

Logistics providers use state of the art software and experienced supply chain engineers to track and manage routes and shipments. They should have plenty of experience to draw on to make sure that your shipment does not get held up at a loading dock in some highly regulated country, and have access to more routes and shipping times than you would individually.

4. More and Better Information

Also, since logistics companies have state-of-the-art software to manage shipments, they often know exactly where a given shipment is at any given time. If a shipment is ever late, or a client needs to know when to expect an order you can supply that information often instantaneously.

5. One Contact For All Problems

Finally, if you ever experience any problems during the shipping process, you have one contact to go to rather than having to track down the contact information of the freight company handling that particular leg of the shipment. This saves you a lot of time and energy. You can simply call the logistics provider, explain the problem, and they will use their weight as a freight broker to get the problem resolved immediately.

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