Supply Chain Management and the Growing Need for Logistics

Small manufacturers and distributors operate under a whole separate set of conditions than their larger competitors. This is because they don’t have the available capital to have any noticeable inefficiencies, and if they do have some, they are going to definitely affect their ability to compete. One solution that these organizations can lean on is a logistics platform. 

What Is Logistics Technology?

Logistics is the act of using information and technology to improve the efficiency of your business’ supply chain, procurement, and overall operational efficiency. With so much depending on a business’ ability to deliver products and services in real-time, having the data needed to make that a reality is important.

How do you go about doing this if you don’t have the massive capital to spend on a large logistics platform? It can be difficult to get started, but as the business world has shifted away from the station-to-station model and embraced a more mobile-centric model, logistics not only is extremely important, it is easier to come by than it once was. Let’s take a look at some of the options SMBs have when it comes to integrating logistics platforms into their business. 

Work with Logistic Vendors

One of the best ways to get a logistics platform for a small business is to partner with like-minded companies. Many businesses have the budget restrictions your small business has and since most logistics companies set rates based on volume, you may be priced out if you are only doing a small amount of business with them. Teaming up with another company could deliver the cost-effective price point that will allow you (and your partners) to meet both of your logistics needs. 

Try Logistics Services from Major Providers

Another great option for smaller businesses is to use a small business logistics service that is run by an enterprise logistics company. Nearly every single one of these companies offers solutions for small businesses. This includes UPS, FedEx, DSL, and more. You may end up paying less than you would if you choose to implement a standalone logistics service and you’ll have some of the best companies in the business backing you up.

Look for Industry-Specific Options

Depending on what your business does and what market you do business in, you may find hiring a logistic provider that dedicated themselves to your market to be the best option. Logistics providers that do business in a specific vertical will know the ins and outs of how to handle procurement, distribution, and all the other parts of logistics that can be difficult for a small business. 

Managing Your Supply Chain Doesn’t Need to Be Difficult

Regardless of what you choose to do about your supply chain management and logistics platform, there are many different solutions that cater to the small business. If you would like to have a conversation about getting a logistics platform for your business and what you need to do to operate more efficiently in the changing business world, give the IT professionals at Directive a call at 607.433.2200.