Maximize The Potential By Better Implementing Our Supply Chain

The Supply Chain has gone from being a function that was externally associated as a series of warehouses, lorry, vans, trains, shelves with numerous items and boxes of multiple volumes, etc. to be the same and expand their horizons. The Supply Chain today, the key function, because it has the ability to reach all corners of the company, suppliers, manufacturers, customers, is able to make a global vision through coordination, collaboration, and integration of all parties involved.

We must be aware that the Supply Chain, deals with procurement, purchasing, technology, software programs, human resources, financial indicators, inventory, distribution, reverse logistics, etc. Being the Supply Chain the key function that has the ability to reach all corners of the company, we must be excellent managers of it and therefore maximize its potential, this will mean between 10% to 50% increase in productivity, which translates into a more solid growth of the company.

If you have lost the motivation or forgot the goal, to do more and better, also for those who want to undertake, for anyone who is semi-conscious that the key is in the Supply Chain, that Logistics is part of the process of Supply chain.

To implement a better Supply Chain, we must enter into inventory management concepts, purchasing functions, supplies, warehouse management, transportation means and logistics platforms, new logistics technologies, inverse logistics, and logistics indicators, I do not forget them. We will see in future entries.

In a context of economic recession in Western markets and an increasingly global business landscape, internationalization ceases to be an option to become an authentic question of survival. More and more companies to which the local or national market is no longer enough to cover their needs, before that they only have one option, jump to the international market.

"In the current context, opening up to the foreign market ceases to be an option for most companies and becomes a matter of survival."

Emerging countries, or so far called developing countries, stop being mere industrial workshops to become huge consumer markets full of business opportunities. Many companies are beginning to replace the lack of demand in Western countries for this burst of consumption in countries such as China, Brazil, India, and so on.

The most affected companies facing this new global panorama are without a doubt the SMEs. Large corporations have their diversified activity in different markets and also have a greater ability to maneuver globally. Small and medium-sized companies, however, tend to be much more linked to national or even local markets, which makes them experience the economic recession from a much more pessimistic point of view. How can an SME open up to the foreign market taking into account its small budget for logistics expenses?

Advantages Of Maritime Transport For SMEs

Maritime transport is the most used worldwide to move goods, mainly because of the good value for money it offers. It is true that transport by sea requires longer transit times than other transport routes such as air or land, however, this waiting time is usually more than compensated by prices, which is a factor for most SMEs.

In addition, maritime transport also makes it possible to transport large volumes of merchandise regardless of their size or weight. This means that 75% of international trade is made through this route, generally by renting entire containers.

It is very common for SMEs to encounter the problem that when it comes to exporting the goods, their orders are not large enough to rent an entire container transportation solutions to a freight forwarder. What to do with this barrier? Very simple, currently freight forwarders usually offer maritime groupage services for SMEs, where different companies can share containers, renting only a part and paying the proportional part.

Maritime Groupage For PYMES

The term groupage (also called combined or fractional cargo) refers to the procedure for the issuance of merchandise by different shipping companies, which alone could not occupy an entire container. Thus, the different shipments of each SME are grouped so that they are treated as a single physical unit of handling and transport, simplifying and making it possible to send them to a common destination.

This technique, increasingly used among SMEs operating globally and especially in maritime transport, allows the shipment of goods to other destinations with a considerable reduction in the cost of transport. If it were not for this type of delivery, the SME should hire an entire container, even if half the space remained empty, with the increase in cost that this implies.

How To Choose Your Suppliers

Suppliers are essential for every business; we tell you how to make the best selection to optimize your operation. Suppliers are essential for every business. Without manufacturers that provide you with the raw materials that you need for your production or that provide merchandise for your commercialization, it would cost you a lot of work to grow. 

On the other hand, consider that your daily operation requires countless products and services that are also part of your costs and overhead, from clips to Internet access. In addition to providing you with what you need to do business, suppliers and import export services in UK are an important source of information to evaluate the potential of new items, track the actions of your competitors and identify areas of opportunity. Thus, they can become your partners and help you reduce costs, improve the design of a product and even ally with you to finance marketing strategies. Therefore, it is vital to make a good selection of them as part of your growth plan.

How to do it? First, it identifies the four categories in which suppliers are divided:

1. Manufacturers. Many retailers buy through the sellers of a company or independent representatives who manage the catalog of different companies. Their prices are usually lower unless the retailer's location increases the shipping cost.

2. Distributors. Also known as wholesalers, brokers or intermediaries, they are characterized by buying large quantities from various manufacturers and wineries to resell to retailers. Although they handle higher prices than those of the previous category, the shipping charge is lower and they have a shorter delivery time, which often compensates for the increase in the price per item. Also, they can fill small orders from different manufacturers.

3. Independent. In most cases, they are self-employed artisans who sell through representatives or who offer the exclusive distribution of their unique creations. They usually exhibit at trade fairs.

4. Importers. They operate similarly to a national wholesaler, only with a catalog of foreign goods. If you are not familiar with these suppliers, the alternative is to travel directly to the country of origin to acquire the merchandise that interests you.

The Basic Points

What makes a provider be good? For many growing companies, this factor focuses on the price. While it is true that this element is essential when selecting the vendors who will accompany you while you manage to consolidate your company, it is also true that there are other points that are equally important.

After the price, reliability is probably the key factor to look for. An efficient and reliable supplier will always send the right amount of items, as promised, at the agreed time and in good condition. Sometimes, someone who provides larger volumes can be more reliable, since he has the means to create backup systems and has the resources to ensure delivery in case something goes wrong.

However, do not discard those with less capacity. Think about the following: if you are a large customer for a small supplier, you are likely to have more attention, better service and security than if you are a small buyer for a large one. Tip: Analyze the advantages of splitting your orders between two small firms. This can give you a backup and, at the same time, a high profile.

Stability is another indicator that will guide you when choosing the best option. For example, the fact that a company retains its senior managers for a long time is a good sign. And if you also have a solid reputation with the rest of your clients, then it is a promising sign that it is a stable organization.

On the other hand, do not forget the location. If you order goods from someone who is several kilometers away from your business, it may take longer to get the cargo and generate additional shipping charges, especially when you need something urgently. The recommendation is that before signing any contract you investigate and prove how long it would take to deliver an order to your area of operation.

It also determines the policies regarding transportation costs. It may happen that ordering a certain amount of product you get free shipping. Or, maybe you can combine two or more orders into one and, in this way, save money on freight. All this is based on measuring the number of supplies and items you require to operate efficiently.

Finally, look for suppliers that can offer you the latest and most advanced products and services in the market. But not only that, they must also have well-trained staff, provide a variety of attractive financial conditions in your purchases, and have a realistic attitude towards you (that you are the client). That is, be willing and willing to work with you so that both parties can prosper their respective businesses.

How To Improve The Relationship

If you already have a portfolio of suppliers, you may not need to find new allies to have better agreements. After all, you can get discounts, a good service, benefits and other things you need just by requesting it. However, if it is not enough to just ask, these negotiation strategies will help you transform and strengthen some points of the relationship with your existing suppliers.

Get discounts. If you go to a department store to buy a pair of shoes, you pay the same price as any other customer. But the business-to-business transaction is more complicated. The companies that sell to other companies usually have a wide range of offers and make different discounts, depending on the amount purchased, the terms of the contract and other considerations. You can probably adjust yourself comfortably to some of those requirements and qualify for access to a lower price, an interest-free loan in the form of commercial credit or even a substantial reduction for prompt payment. To find out, first ask about the possible benefits that you can make creditor and the terms that must be met to enjoy them.

Optimize the service. It is rare for the entrepreneur to know exactly what is happening in the different areas of his organization at all times or in what situation the relationship with each of his clients is. If there is a problem related to the service provided by a provider, let them know; If you are not satisfied, go to the next person in charge, until you get what you want or reach the highest administrative level possible. It is very likely that someone does care and has enough authority to remedy the situation. If you cannot solve the problem, consider ending the relationship.

Ensure a long-term relationship. Who sells you may not offer to work more closely with you to improve the quality of service, reduce logistics errors and lower costs; although it does not necessarily mean that you do not want to do it. You might even have the impression that you are the one who is reticent. If you want a closer working relationship with your suppliers, the most practical advice to follow is to make sure they find out. As simple as that.

Better Quality Than Quantity

Having a smaller number of providers that do comply with the established is better than a large group that is not really interested in strengthening the relationship with you. Consider the following: if your portfolio is smaller, you can create closer relationships, which will allow you to work together to control expenses.

In addition, reducing the number of strategic allies with whom you deal decreases the administrative costs of your business and getting rid of problematic cases can quickly increase the efficiency of your purchasing and procurement team.

How To Decide When To Change Providers? 

Here Are Some Key Points That Must Be Taken Into Account:

Lack of reliability. When shipments begin to arrive consistently late, are incomplete, damaged or incorrect, it's time to think of someone else. Although do not rush, do not forget that every company has problems from time to time. It can happen, for example, that they experience temporary difficulties as a result of the introduction of a new product line, shipping procedure or training program. If you stay by their side during a complicated interval, then you may be glad you have invested this time. They may be more willing to show solidarity with you in a future cash flow crisis.

Isolation. Some providers will allow you to visit your plants, talk to your workers, question your managers, obtain references from other clients and even examine your financial statements. This is the kind of strategic allies you should look for. The more you know about the way you work, the better tools you will have to evaluate if you continue doing business with them. Otherwise, maybe you should discard them.

Extraordinary costs. The total amount of the invoice is only the principle of the cost involved in dealing with suppliers. You must also disburse money to define the specifications of the products, request proposals and quotes to evaluate them, as well as review references. If after making the calculation, it turns out that the relationship does not suit you in economic terms, look for other options and compare them.

Logistics and Transport: Divide Profits

Does it cost you to be still on one side? Do you want to make mobility your way of making money? There are people who do not have the possibility of going from here to there. Do you prefer a dynamic and less passive activity? We have an idea that will suit you: start a logistics and transport business.

There are ideas whose purpose is essential to many people, such as the case of a logistics and transport company. There are many challenges and also many opportunities in this type of business.

We will also offer you a guide so you can start now.

Opportunity is for your logistics and Transport Company

What you should never stop wondering: will there be demand for this service? Let's see:

• Any person or company requires courier or parcel services to deliver gifts, account statements, product samples, receipts, gifts. The etcetera is quite long.

• Even in small cities there will always be someone in need of delivering a package.

• In times of crisis, companies will reduce personnel. Then they will have to outsource services to keep costs down.

Convinced? Let's look at the competition that you will face. 

Your Competition

The courier business is a field where many giants have already established themselves. Their tasks include both the reception of packages at the counter and the collection at home. Additionally we have the bagging, packaging, labeling, and offer the service of logistics and permanent transportation for companies that request it.

These companies will help you define if your range of action will be international, national, regional or local, and seek to establish the relevant alliances to the case: air, sea or land transport.

Another way of association is to seek agreements with larger companies (FedEx, DHL, etc.) so that both parties can expand their range and support each other.

There are also franchises to which to adhere. As we told you, the competition is immense, and it is up to you to differentiate yourself and offer the service in the most efficient way.

 You must specialize in one subject or improve one aspect of the key service! Here are some examples:

• You can offer the ecological touch in your service: if your business is local, it offers delivery with bicycle messengers.

• Look for alliances with insurance companies to ensure your client confidence in sending high value packages.

• Specialize in specific topics: food delivery, pet transportation. The more specific you are, the better your chances of reaching your potential client.

Once your range of action has been defined, you must display your first actions. Fortunately, for this initial phase you do not need too many resources.

Constitution: Request the permits before the entities and respective authorities of your city regarding a courier business and its operation. And of course: a striking name! If you need inspiration, see how to start a business in three steps.

Get an automotive transport. Depending on what you are going to offer, it can be from a bicycle, going through a motorcycle to a truck or truck. It depends on your projections and capacity.  A family or small cargo truck in good condition is ideal, because it increases the chances of transporting packages safely and larger. Also get a wheelbarrow for transport, and a cage in case of animals.

A cell phone and computer, so you can handle communications efficiently and keep track of operations.

Stationery: Parcel receipts, consignments, business cards and promotion. Create a website, or in its absence, a good battery of social networks to help you to make the company known. We tell you how in this link.

Last but not least, get a good staff: polite and friendly, to always leave the best impression on your customers. Here you can learn some steps to hire staff for your company. 

No Start Is Simple: Take A Ride

Other tips for your UK best logistics and transport company

So far I have mentioned the essential aspects to shape your logistics and Transportation Company. There are details that you should keep in mind to make it even more effective:

• Make your presentation something friendly: invest in a good logo that you can replicate in uniforms, stationery and transportation to generate a good connection with the clientele.

• Nothing more valuable than leaving a good impression on your client

• Visit businesses, offices, schools, hospitals and residential complexes to deliver business cards or flyers to let you know, emphasizing the personalized service you offer.

• Be responsible and punctual: a good reputation is the best ally you can find.

With this article you can also create a business plan, very useful to get partners, loans or investors. Do not forget to read: 10 commandments to write your business plan.

Your challenge from here will be to put together a good plan, and carry it out successfully. I have no doubt that many companies will be happy to have a good logistics and transport service to trust their errands. Do it now and start growing!

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