Stay competitive: 5 tips for an agile logistics business plan
It’s a challenging time for the logistics sector. The current economic climate calls for innovative solutions and bold strategies. Companies that ignore or refuse change will lose out to competition and miss important opportunities for growth. A report by McKinsey & Company states that logistics businesses need to be more agile than ever before to increase their profits and productivity.
To survive and grow your company, you need to keep your competitors at bay with an agile logistics business plan. Here are five tips to help you succeed.
Master your digital transformation
Digitally enabled change is putting many logistics companies under pressure. Businesses need to pay close attention to the technology trends that impact their operations and adapt accordingly. Consider how your customers are engaging with your services, the solutions your competitors are taking to market and even how your shareholders are redefining your logistics business plan.
To maintain a solid competitive edge, your company needs a digital strategy that supports your business’ unique value proposition. The greatest benefit of ‘going digital’ is when it’s built into your current strategy and doesn’t stand alone as a separate focus area.
Focus on flexible resource allocation
The logistics sector is asset intensive. Companies depend on industry specific equipment to do what they do, be it forklifts or barcode scanners. This machinery will need regular maintenance, upgrades and replacements – which can amount to a large amount of capital investment over time.
Rather than over-investing in assets, think carefully about how your company allocates its budget. Many businesses make decisions based on how things have always been done, rather than consider current circumstances – sound familiar? If you want to beat your competition to the top, you need to stay abreast of trends and look for new and improved ways of spending your budget to get the best results.
Optimize your processes
Efficient processes are the make and break of any organization. Their importance cannot be overstated enough. In terms of competition, the company that wins, is always the one that manages to produce the most at the lowest cost. If your processes are not optimized and your equipment is not working at full capacity, your profits and productivity will suffer.
Make sure your employees are productive
No matter how well-maintained your equipment is, if your employees’ well-being is not taken into account, their productivity will decline. Invest in a workplace and processes that keeps your staff healthy and happy, and you’ll achieve optimum results that position your company ahead of the competition.
Motivate your customers to come back for more
Your customers are the life-blood of your company. As competition heats up, customer acquisition can easily take centre-stage which can alienate your loyal base. Keeping your competitive edge means keeping our corporate image intact and making sure your existing customers are satisfied – while winning new business.
Your logistics business plan needs to focus on delivering a positive customer experience to ensure repeat business. This means your goods must always arrive on time and in good condition. A clean site is also an excellent idea – you never know when customers may stop by for a surprise visit and you want them to leave with an excellent impression that encourages them to come back again.
Follow these five tips and your company will be on its way to enjoying greater success and profitability. Your competitors won’t stand a chance.