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Plan, Implement, and Control: Why Proper Business Logistics are Essential
(Thursday, 15 June 2017) Written by greeniac61858156

Like the old saying goes, if you fail to plan, plan to fail. Having a good business plan is probably what got you started in the first place, but planning is an essential ongoing component of your business, no matter what stage you are in. From starting your business to building your business to expanding your business and possibly even selling it and starting a new one, having a plan is essential. Plans can always change, of course, but having a good one in the first place will make the difference between smooth sailing in rough waters or being one more shipwreck at the bottom of the industrial ocean. Here are 4 reasons why logistics - the means with which you implement a plan - are crucially important to the success of your business.

Changing Needs

If you run an accounting firm, you need accounting software, computers, office supplies, and marketing materials, but you also have to constantly be balancing supply with demand. During tax season you may need more employees and in the off-season you might need fewer - which also means you need less office equipment and office space. At the same time, you are often competing with other accounting firms for the same resources during the same season. Logistics are what help you deal with the ebb and flow of your changing needs. Almost any industry you are in will have a peak and slow season and logistics help you manage them most efficiently. For example, say you canít afford, or canít fit, liquid coating equipment in your warehouse. If you choose to outsource your liquid coating, then you can hire a logistics company to run as an intermediary.

Enough Supplies

If you run a bakery, you probably need flour every day, but you also only have so much storage space - particularly because every square foot of storage space cuts into precious prep, baking or retail space. Logistics ensure you have what you need every day and even the extra that you need during certain peak times like wedding season, graduation season or mother's day. You may also find that you canít afford to produce certain products in house and take advantage of an off-site service, but you still need a company to run between to deliver supplies and products.

Filling Gaps

Many times when people start a business, they have a specialized skill set or knowledge base, but little idea of how to grow a business or manage a supply chain. Hiring outside logistics in their industry can help. While a business owner might be great at creating and selling a product, they may know very little about the actual machinery that is needed to mass produce their product. This is where outside logistics comes in. One company can provide outside logistics to get you what you need to get your product made and another outside logistics company can help you get it shipped and into the hands of you clients or consumers.

Moving Product

Once you have a product made, it doesn't do any good sitting on warehouse shelves, it needs to be packaged and shipped to the consumer or a retail outlet - or both. Logistics help you keep up with demand while not over-producing and gets what you are producing to the right sources. An unexpected news article may suddenly put your product on the national radar and drive demand sky-high. To meet the demand, you need a vast increase in raw materials as well as to determine whether to ship more product directly to retail outlets or to individual consumers who purchase from your website. Sudden national exposure that drives up demand has the potential to make or break companies - and having a good plan in place for logistics is generally the determining factor.

Good logistics help you manage peaks and lulls and even unexpected tidal waves. Good, solid companies almost always have rigorous logistical plans in place to deal with any type of crisis or emergency. Make sure you have good logistical plans in place to weather any storms and to appropriately harvest the bounty of unexpected windfalls.

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