Whether you’re managing inventory, shipping orders or trying to maintain your supply chain operations, logistics is a critical component of any small business. How well your company handles logistics can make or break your business, specifically when it comes to customer satisfaction. Unfortunately, small businesses often run into issues with their logistics strategies due to budget and workload which can lead to delays, extra costs and unhappy customers.
At Wright Logistics, we often work with small business owners and have found mistakes that are commonly made. Here, we’ll walk you through these mistakes and how business owners can avoid them.
1. Lack of Inventory Management
Poor inventory management is one of the most common errors we see small businesses make. Without a proper system, owners will find themselves overstocking products or running out of their best sellers at the most inconvenient times, like around the holidays.
How to avoid it: We recommend investing in an inventory management software. Tools like QuickBooks or Excel are inexpensive and help you monitor stock levels, predict demand and avoid costly mishaps. Along with purchasing a system like this, we encourage you to manually audit your inventory as often as needed.
2. Underestimating Shipping Costs
Packaging materials, fuel surcharges and return fees are all expenses tied to shipping that small businesses tend to underestimate. These costs can add up, eating away at profit.
How to avoid it: Partner with a third-party logistics provider like us. We can negotiate better rates, communicate accurate charges and help you standardize your packaging to reduce costs and build more efficiency.
3. Not Tracking Shipments
Once orders leave your warehouse or building, they’re in the hands of your deliverers. Sometimes this leads to lost packages and unexpected delays, which can then lead to dissatisfied customers. Real-time shipment tracking can help your business live up to customer expectations while also ensuring smooth delivery workflows.
How to avoid it: A third-party logistics partner can provide reliable tracking services, equipping your team with tools that they can access to immediately address shipment issues.
4. Overlooking Seasonal Demand Spikes
During the holidays and summer months, product demand is high which can overwhelm small businesses who are unprepared. That’s when logistics functions like inventory, staffing and transportation start to fall apart.
How to avoid it: Plan ahead by analyzing past sales data for trends around key holiday seasons. A logistics partner can help you make sure that you have adequate resources to handle peak demand.
5. Not Working with Third-Party Logistics (3PL) Partners
Many small businesses attempt to handle every aspect of logistics in-house. This stretches their resources thin, can limit scalability and lead to errors.
How to avoid it: Collaborate with Wright Logistics. Our team of industry experts can streamline your logistics processes, including order fulfillment, industry management and shipping all while reducing costs and improving efficiency.
Contact us at 251-300-2927 to learn more.
