The success of your logistics business largely depends on your ability to make the right decisions to help you juggle all the demands of working in this industry. Get your business off to the right start and hold your own to the competition (which there will surely be plenty of) with these six hacks for your new logistics business:
Use the Tools Available to You
In order to remain competitive as a logistics business, you need to be able to remain competitive. To do that, you should be seeking out any and all resources available to you, like Transportation Management Systems (TMS).
TMS definition: Software that allows logistics businesses (like eCommerce shippers) to streamline and centralize their systems so that you can work faster and smarter.
With advances in technology, you should be finding ways that help you increase routing efficiency, allow you to reduce error rates, and improve your overall services. If you’re performing at peak operation, you’re likely to bring in more customers as news of your business’s performance spreads and you’re able prove to potential clients that you are the best business to work with.
Make Your Vehicles Double as Marketing Material
You’ve already invested in your fleet vehicles to make sure you can get deliveries to where they need to go, but did you know that your vehicles are also prime real estate for marketing your business. Adding customized wraps to the outside of all your fleet vehicles will not only make them look more professional, but it’s an excellent opportunity to get your business more exposure. Make sure your wrap is easy to read and includes the vital contact information so that customers in your services areas are able to contact you directly for your services.
Consider an Installment Sale When Financing Vehicles
Investing your fleet vehicles is one of the biggest expenses your business will undertake, especially when you consider the high interest rates often associated with financing. If you’re going to finance one or more of your vehicles, consider finding an installment plan with a good APR instead of simply leasing your fleet vehicles.
What is an installment plan? With an installment plan, you’ll typically put down a down payment and make fixed payments going forward. At the end of the contract term, you should own your vehicles.
Establish a Maintenance Management Program
Again, the vehicles your business uses are one of your biggest expenses, which is why you need to take a strategic approach to maintaining them. Not only will this help you avoid surprise repair costs that can take a huge chunk out of your budget, but it can ensure that your vehicles always run smoothly when they’re needed.
You should also find a maintenance provider that you can trust to give it to you straight. Working with the same provider could also help you save by working out a deal since you’ll be giving them regular business.
Seek Out Training
In order to make the most of your logistics business, you need to understand the ins and outs of your industry and the nuances of running this type of business. If you’re just starting out, you could likely benefit from taking a specialty training course. That way, instead of learning from trial and error, you can step into your role as business owner prepared with the knowledge to prevent mistakes and get your company off on the right foot.
Use Cybersecurity Software
As you likely know, cybersecurity is more important than ever with the increase in sophistication and frequency of cybercrimes—not to mention the logistics industry has a bigger target due to the large amount of data they have access to.
However, that doesn’t mean you need to invest in an on-site IT department or expensive cybersecurity firm. Instead, looking into cybersecurity software and read up on the latest cybersecurity best practices to protect both your customers’ and your own information. Investing in high-quality software now could save you a lot of money, not to mention lost business, later since you’ll be adequately protected.
Entering the logistics business may be easy, but remaining successful and achieving the level of growth you wish to see can be a different story. However, these six insider tips should help you make smart choices for your business that will help you get a leg up on the competition and offer the best possible service to your customers.