Why You Need A Logistics Team In Business

Running a business is a rewarding experience, and whether you decide to run an online business from the comfort of your own home or open up a kick ass shop, there are many things to consider. 

One aspect of a business that not many people think about until it becomes necessary is logistics. Logistics is the backbone of every business, and is the hub for all shipping of goods and importing essential parts. Today we are going to take a look into logistics a little so that you can fully understand how to manage your supply chain. 

What is Logistics? 

Logistics is part of the supply chain of the business, and describes the management of goods from their source, to shipping and eventually to the end consumer. The purpose of logistics is to plan, coordinate and monitor the flow of physical items from one place to another, and to keep track of costs, understand regulations and implement programs. 

What Does It Involve? 

The central part of logistics is shipping goods. There are several steps to go through from the point of transaction to movement of goods and arrival onsite. 

Finding Freight Companies is the first and most crucial part of running a successful logistics department is to have a list of reliable transportation companies on hand to use at any one time. It is advisable to have a few different companies on hand as they will offer slightly different services at different costs, and availability varies. Rather than trawling through hundreds of websites to find what you are looking for, you can use a load board - which allows you to share your load onto a website and attract the attention of any local freight companies who would like to complete the job for you. It saves time and could earn you a good deal on your load. 

Once you've successfully picked a haulier, the goods must be transported. If you are transporting goods internationally, there may be certain regulations to follow for particular products. For example, some pet food products made in the USA cannot be shipped to Europe as they contain ingredients which are illegal in other countries. Always check this first before purchasing a parcel. Another thing to consider is whether your shipment is FOB or EX-Works. FOB stands for 'free on board' and describes when the seller is obligated to deliver goods directly to you. This means you won't have to pay for a shipping container or transport once it is back on home soil. Ex-Works is when the seller must prepare all goods for transportation but aren't responsible for shipping. In this instance, you will have to make all arrangements yourself. 

How Can You Benefit From A Logistics Team? 

A dedicated logistics team is a major part of your business and performs a fundamental role in it's smooth running. They are experts in building relationships with hauliers, able to haggle for the best deals and have the knowledge of all regulations and restrictions. The logistics team is an essential part of any business who sells goods to the consumer.

I hope you enjoyed this article about whether or not your business needs a dedicated logistics team to improve the supply chain process.

Interested in more articles about logistics and supply chain?

Read My Posts:

- How To Evaluate & Improve Your Logistics Strategy 

- Tips To Drive Down Delivery Costs

Published by Michael J Schiemer
Owner of Bootstrap Business
Money - Marketing - Motivation
Digital Marketing | SEO | Social Media
Mike Schiemer Builds Better Business

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