top logistics challenges for small- and medium-sized
TRANSCRIPT
©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
2©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
When a Tennessee-based manufacturer of industrial-grade tools decided to close its Canadian distribution center and rely on its U.S. facility to service the Canadian market, it thought it had a workable solution in place to ensure adequate inventory levels to meet the needs of its growing customer base. But the company soon realized it had misjudged the volume of inventory it would need. Two things quickly became apparent: First, the company would need help sourcing inventory in Canada. And second, the high-profile logistics provider that had wooed the company with promises of top-tier customer service was nowhere to be found.
This example illustrates some of the logistical challenges small- and medium-sized businesses routinely face: While demand exists for their products, and opportunity for growth may be strong, their comparatively small size can prevent smaller companies from registering on their logistics provider’s radar screen. As a result, businesses can miss out on logistics innovations that could help them operate more efficiently and the high levels of guidance and planning necessary to succeed.
How then can smaller-sized businesses – which according to the Small Business Administration
account for 99 percent of all U.S. businesses – take advantage of technology and other opportunities to improve efficiency and better serve their customers? Many businesses, for example, would be pleased to learn that technology solutions can be highly affordable and customized to meet their budget.
The first step, of course, is for a business to seek out information about industry best practices and learn from others’ experiences. It’s quite possible that a solution already exists for a business’s top challenges.
The following discussion focuses on key transportation and logistics challenges facing today’s small businesses. Each is linked to an overall goal of improving efficiency and customer service at a time of heightened demand for flexibility and low-cost shipping. And as each topic reveals, integral to any service upgrade will be an experienced logistics partner. The right logistics partner will help you put a strategy in place to help your company achieve efficiencies previously unthinkable.
The Tennessee-based industrial-tool manufacturer found this out firsthand when it called upon a new logistics provider to help address its Canadian inventory problem. The company was pleasantly
surprised when its new provider developed a ground solution that ensured U.S.-based inventory would arrive in Canada several days faster than under its old provider. As this company learned, change can be good and efficient.
Introduction
Introduction
3©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
Logistics Management’s bellwether "24th Annual Study of
Logistics and Transportation Trends” found “cutting costs”
to be the top priority for business managers (36.7%), more
so than “increasing customer satisfaction” (26.9%) or
“maximizing profitability” (25.6%). Integral to any successful
attempt at cost cutting though will be a realignment of freight
costs. As the survey found, transportation costs account for
roughly 10 percent of a business’s total sales, and that figure
has increased in recent years.
As businesses address the need to cut costs, they also face
unprecedented pressure to increase service offerings. As
Professor Mary Holcomb of the University of Tennessee’s
Haslam College of Business pointed out in Logistics
Management, “Research has shown that services are a core
component of a company’s offering along with the physical
product. However, increasing service levels often leads to
increased cost.” And, Professor Holcomb notes, “when faced
with a trade-off, the majority of companies will choose to focus
on cost over service.”
Specifically, businesses must consider costs associated with
an integrated omni-channel distribution strategy. All businesses
– large and small – face strong customer expectations for
“all-of-the-above” options with regard to fulfillment and
delivery options. But the bottom-line implications can
be especially significant for small- and medium-sized
businesses that do not have the volume and revenue to
absorb these costs.
How then can a smaller-sized business gain control of its
transportation costs?
In fact, there are several things that can be done.
Ensure you have the right provider. For starters, a
business needs to make sure it is being well served by its
existing service provider. Smaller businesses generally rely
on LTL-based freight solutions, since they typically do not
have the volume for a full truckload. But within the scope of
Challenge #1: Controlling Freight Costs
Challenge #1: Controlling Freight Costs
4©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
LTL freight, there are many different service offerings, price
points, and carrier capabilities:
• A wide range of delivery options. A business must
have confidence that its shipments will arrive on time
and must also have access to a range of service options
to meet customers’ changing needs. Why, for example,
should a business be forced to pay for overnight service
when two- to three-day delivery would be sufficient?
Businesses are no longer willing to tolerate yesterday’s
“one-size-fits-all” service options, and thanks to
innovative LTL providers, they no longer have to.
• Flexibility/scalability. Flexibility is a top expectation in
today’s customer-driven world – and one of the biggest
reasons businesses are drawn to LTL solutions. Can
an LTL provider reschedule a pickup if it’s not ready on
time? Can accommodations be made for late pickups
or early delivery times? Can the service provider make
adjustments for special needs?
Scalability is another factor that has become increasingly
important, especially with the rise of eCommerce.
Businesses are more subject to seasonality and
customer demand than ever. A supplier of snow removal
equipment would not have much need for daily pickups
during the summer, for example, but that would change,
of course, once cooler weather approached.
• Cost should be one of many variables in choosing a provider. A business needs to be careful not to
let cost be the most important factor in determining
a provider. For one thing, a carrier may intentionally
provide a low quote, only to add several surprise items
to a monthly invoice. Or the old adage “You get what you
pay for” may come into play, whereby low-cost service
leads to low-quality results.
Consolidation. Businesses are well aware that larger
shipments receive more favorable freight rates than smaller
shipments. It makes sense then that consolidating smaller
shipments into a single larger unit would be a beneficial
way to gain shipping efficiency. In fact, consolidation can
have a demonstrable effect in reducing shipping charges.
Consolidation is also of great benefit for cross-border
shipments, since a larger shipment will clear customs as a
single entry. Despite the obvious benefits of consolidation,
not every logistics provider has the necessary capability, so a
business should specifically clarify with any potential logistics
partner before entering into an agreement.
Packaging efficiency. Beginning in 2015, most U.S. and
Canadian ground shipments are subject to dimensional
weight pricing (DIM pricing), whereby charges are assessed
based on volume and density rather than solely on actual
weight. Carriers implemented the pricing change as a
result of the surge in eCommerce packages that tend to be
lightweight but often oversized. By one estimate, a “typical”
eCommerce package includes as much as 40 percent air
and filler.
Dimensional weight pricing seeks to rectify the situation in
two ways: (1) shippers are incentivized to avoid higher costs
by implementing packing efficiencies and (2) carriers are not
“penalized” for shippers’ inattention to packaging details.
The new pricing strategy is expected to impact as many
as 30 percent of all ground shipments, with shipping costs
expected to increase by as much as 30 percent. Businesses
can mitigate the impact of the new pricing strategy in
several ways:
• Packaging efficiency is an obvious place to start, but
for smaller businesses that don’t stock inventories of
different package sizes and filler materials, this can be
a challenge.
• Technology can assist by optimizing packaging practices,
and for many, it has become a valuable part of an
integrated warehouse/transportation solution.
• It’s also possible to negotiate with a carrier to try and
minimize the effect of the new pricing strategy.
Challenge #1: Controlling Freight Costs
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Top Logistics Challenges for Small- and Medium-Sized Businesses
Smaller businesses must also contend with the phenomenon
known as “the Amazon effect,” whereby the Internet giant
has raised the bar significantly with regard to customer
expectations for delivery costs and transit times.
The company’s Amazon Prime, which currently has more
than 20 million U.S. members, offers unlimited free two-day
shipping for an annual fee of $100. And residents in almost
30 metropolitan locations are eligible for same-day, even
hourly, service.
According to The Wall Street Journal, Amazon’s free shipping
option has turned the retailer into the “first stop” for a
growing number of consumers. In a survey commissioned by
BloomReach Inc., the paper reported, 44 percent of consumers
said they begin their online shopping at Amazon. “That’s up
from 30 percent in 2012,” the article noted.
Big retailers like Amazon and Walmart are able to offer free
or reduced shipping because of the volume discounts they
receive from carriers – last year Amazon shipped more than
a billion packages in North America, roughly seven times
as many as its close rival Walmart, the Journal noted.
With discounts factored in, analysis from Barclays estimates
Amazon spends $4 to $5 per package, while “average”
businesses must spend $7 to $8 per package.
Not surprisingly, consumers have grown accustomed to
such favorable shipping terms. Research by Accent found
88 percent of consumers would be more likely to shop at
a particular online site if free shipping were offered, while
research from Compete found more than 60 percent of
consumers said they would not have completed their most
recent online purchase if free shipping had not been available.
And as The Wall Street Journal reported, “free shipping was
supposed to be a temporary enticement in the early days
of eCommerce, but customers came to expect it, and even
demand it.”
While retailers clearly understand customer expectation when
it comes to free shipping, the problem is, for many smaller
businesses, it is simply unaffordable. So how can a smaller
business possibly compete?
• Talk to your logistics provider. Many businesses
mistakenly believe they are too small to warrant
concessions from their carrier but, in fact, new service
options are available that can significantly reduce
costs and improve transit time. For example, it is now
possible for certain Canada-bound shipments to reach
their destination faster – traveling via ground – than if
they were sent by a more expensive air solution. This is
because certain carriers have become more efficient,
utilizing route optimization technology and avoiding
unnecessary stops and layovers. In many instances, a
good logistics provider will have innovative solutions to
help businesses meet the needs of their customers. And
if your logistics provider doesn’t seem to have any ideas,
Challenge #2: Meeting Customer Expectations
Challenge #2: Meeting Customer Expectations
6©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
it might be worthwhile to shop around. Innovative logistics
providers are introducing new services on a regular basis,
and chances are, there’s a new option that will help
your business.
• Limit free shipping to minimum purchase levels. Many retailers require consumers to spend a minimum
amount in order to qualify for free shipping. This can have
the added benefit of increased sales, as consumers add
items to their order to meet the free-shipping threshold.
• Fold shipping costs into product costs. Another
option is to “hide” the costs of shipping by increasing
product costs, thereby having consumers unwittingly pay
for their “free” shipping. This is a risky strategy, though,
since cost-conscious shoppers may opt to make their
purchases from a lower-priced competitor.
• Flat fee. Some retailers opt for a “flat-fee” approach,
whereby all orders ship for the same price. Yankee
Candle, for example, charges a flat $5.99 rate for all
orders under $100, with free shipping for orders above
$100. Under a flat-rate model, a shipper essentially loses
money on shipments that cost more than the charged rate
to ship, while it makes money on those that cost less.
The goal is to find the price point at which losses are
offset by gains.
• Use free shipping as leverage. The Wall Street Journal
reports some retailers have used the allure of free
shipping as a way to persuade consumers to take certain
actions in order to qualify. These actions can include
opting for a slower method of delivery or adding extra
items to their shopping cart.
A smaller-business manager may also find some comfort
in knowing that even for megaretailers like Amazon.com
Inc., Best Buy Co., and Gap Inc., free shipping comes at a
price. The three retailers recently announced increases to
the minimum purchase amount required to qualify for free
shipping. “Chains have been seeking to dial back the cost of a
perk they had used aggressively to encourage shoppers to use
their websites,” The Wall Street Journal reported.
Challenge #2: Meeting Customer Expectations
7©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
While few business managers dispute the important role
technology can have in adding efficiency and enabling new
processes, many feel intimidated by the sheer number of
options available and by the price tags that can accompany
an investment in technology. Research among small-business
owners conducted by Brother International Corporation found
64 percent of business owners feel “overwhelmed” when it
comes to technology, with 59 percent saying they felt they had
“no one to turn to” for tech guidance.
In fact, there are plenty of technology professionals who would
be delighted to help a business find the right solution, at the
right price point. With so many options from which to choose,
a business needs to ensure that it decides on a technology
solution that will (a) solve its problem and (b) integrate with
other technology systems. In other words, a low-cost inventory
management software system that cannot be linked with a
transportation management system won’t be of much value
in improving efficiency. And neither would it be helpful if that
inventory management system lacked certain functionality that
was critical to your business.
In determining the best course forward, a business will find it
has multiple options:
Enterprise solutionsMany businesses – usually larger organizations – choose an
enterprise solution whereby an entire organization depends on
a single system but uses only the part that relates directly to
its function. The accounting department, for example, would
use only the accounting functionality of the enterprise solution.
An enterprise solution can be customized to meet a business’s
unique needs but, in general, will include functionality for
key departments, including billing, ordering, scheduling,
manufacturing, sales, compliance, and customer relationship
management. Enterprise solutions, although costly, are
generally less expensive than having each department
maintain its own operating system. Plus, enterprise systems
have the benefit of providing a high degree of visibility since all
data exist on the same platform.
Suite solutionsAnother option is to integrate a suite solution, whereby a
business offers a selection of software solutions; each is
targeted at a specific part of a business but can be linked for
real-time data sharing and visibility. A suite solution, while
not as expansive as a stand-alone software package, can
generally be relied upon to provide efficient, intuitive, and
powerful solutions. Another important advantage is the built-in
integration of all component parts. In other words, a suite’s
warehouse management software will be able to sync with its
accounting software since the two packages were designed
and built by the same company.
Challenge #3: Investing in the Right Technology
Challenge #3: Investing in the Right Technology
8©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
Cloud solutionsTechnology delivery and accessibility have been significantly
transformed in recent years by the explosive growth of cloud
technology. Through the cloud, a business essentially “rents
space” on a web-based service provider so that its entire
IT function exists on that external server. This means that a
business no longer operates its own internal systems, software
licenses, or IT functions. Instead, employees – and anyone else
authorized to use that business’s cloud – can log on from any
computer from anywhere in the world with remote access.
Businesses that have craved the ability to easily on board
vendors, to share data with suppliers, or to have cross-
company document-sharing capability are finding cloud
computing to be an ideal solution. Among the benefits are
the following:
• Cost containment – a business pays only for what it needs
• Scalability – cloud computing allows scalability so that
businesses can easily adjust their storage and usage
capacity based on their precise needs
• Accessibility – because all data are stored on a web-
based platform, an employee or other authorized user will be
able to access the system remotely, using any computer with
Internet access
For those businesses still using Excel spreadsheets, paper-
based orders, and invoices, transitioning to a technology-
based solution will force a tremendous cultural change
within the organization. Even for businesses that already
have a technology system in place, switching to a more
comprehensive solution can be disarming to an organization
already set in its ways.
An investment in technology will prove to be money well spent
in terms of added efficiencies and capabilities. According
to research by the University of Tennessee’s Global Supply
Chain Institute, businesses that have implemented technology
systems report the following:
• 25 percent savings in processing orders
• 20 percent savings by processing invoices electronically
• Invoices processed an average of 4.5 days faster
• 69 percent cited enhanced ability to respond more quickly
to change
• 68 percent reported that clients said they were easier to
do business with
Challenge #3: Investing in the Right Technology
9©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
Proper inventory management is the holy grail for businesses
eager to find the right balance between customer demand
and proper stock levels. Too much inventory and a business
risks excessive carrying costs and high levels of unsold
merchandise. But too little inventory and a business risks not
being able to meet customer demand. A survey by Stitch Labs
of small- and medium-sized businesses found “out of stock
items” is the number one inventory mistake that leads to
lost customers.
Managing inventory becomes even trickier for businesses
that have implemented omni-channel distribution strategies,
whereby customers have multiple options for pickup locations
and schedules. The result has been a change in inventory
practices, whereby retailers prefer to store “just enough”
inventory in warehouse locations close to customer bases.
This has led to increased demand for warehouse capacity,
especially in urban areas. According to research by The Wall
Street Journal, warehouse occupancy is at a 30-year high,
with more than 90 percent of existing space filled. “Retailers
have been renting warehouses faster than developers can
build them, as they race to build infrastructure to fulfill surging
online orders,” the paper reported. “The latest trend of opening
smaller distribution centers near cities to improve delivery
times and accept returns is driving rates into the low single
digits in some areas.”
This need to keep inventory closer to consumers presents
a special challenge for smaller companies that simply lack
the resources – or the volume – to maintain a network of
warehouses. But, with the right logistics partner, a business
won’t have to take on additional warehouse costs. Among the
solutions a capable provider can offer are the following:
• Access to warehouse network. An experienced
provider will have in place a comprehensive distribution
network that includes strategically located warehouses
to which its customers can have access. This allows
a business to store inventory where it is needed, and
flexibility to meet cyclical demand, without having to lock
in long-term warehouse agreements of its own.
• Shared assets. A growing number of businesses
are signing up for services once unthinkable: sharing
warehouse space or truck space with competitors,
especially in instances where inventory is scheduled for
delivery to the same retailer.
Challenge #4: Managing Inventory
Challenge #4: Managing Inventory
10©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
Omni-channel strategies (and their emphasis on fluid
inventory, and flexible shipping and delivery options) will
necessarily force deep analysis of existing distribution
and transportation processes. Top considerations include
the following:
• eCommerce-driven surge in multiple small-package
shipments, each in need of delivery to a private residence
or small business, often located in remote regions.
• Challenge of having “just enough” inventory in the right
place at the right moment to meet in-store sales, as well
as “ship-to-store” and “ship-from-store” commitments.
• Pressure to adapt to the new world order in which
customer preferences are driving businesses’ supply
chains. This includes expectations for fast and free
delivery service, with little tolerance for late arrivals.
• Pressure for retailers, who often do not have enough
distribution centers or the bandwidth to absorb the costs
of offering free shipping.
The challenge then is for businesses, operating on razor-
thin margins, to offer Cadillac levels of service for very little
cost to their customers. “Most retailers are trying to figure
out the eCommerce model,” says Huw Thomas, CEO of
Alberta-based mall developer Calloway REIT. “The delivery
component of the eCommerce equation is a very, very
expensive piece of the puzzle because, in essence, you’re
matching the prices that you have in a physical store, but
you’re delivering for free sometimes very substantially sized
products to a consumer.”
The good news? It can be done. Among the current
“best practices” businesses are using to meet today’s
transportation/distribution challenges are the following:
Rethinking the TMS. Flexibility, scalability, and adaptability
– these three words are often used to describe critical
components of an omni-channel transportation management
system (TMS). Today’s successful supply chain allows a
business to schedule transportation based on its needs
rather than be locked into a rigid “one-size-fits-all” service
schedule dictated by its traditional service provider. Instead,
today’s TMS has many moving parts, with technology being
the glue that holds everything together. One industry expert
defines today’s TMS as a “holistic” system that “allows
retailers and manufacturers to gather facts about current and
future orders, and then make the best possible judgment that
combines low price with high service. As business conditions
change, this process is repeated to ensure that shippers are
always making the right choice for the current environment.”
Shared assets. Once unthinkable, a growing number of
businesses are taking control of transportation costs by
reaching agreements with companies with similar supply
chain needs – usually competitors – to share distribution
centers, truck space, and other assets. The practice, known
as “horizontal collaboration” or “collaborative shipping,”
allows companies to reduce costs on distribution, delivery,
and even backhauling. Among the companies currently
collaborating: U.S. chocolate manufacturers the Hershey
Co. and The Ferrero Group in North America have shared
warehousing, transportation, and distribution processes and
assets since 2011.
Last mile. With eCommerce requiring delivery to
consumers’ homes and local business addresses, critical
last-mile delivery capabilities have been in the spotlight.
According to the Financial Times, last-mile services can
account for 75 percent of total logistics costs. Last-mile
services can be exacerbated by the difficulty in reaching rural
or remote addresses. Once an address is identified, it may
be necessary to make multiple delivery attempts if no one is
available when the initial attempt is made.
Challenge #5: Distribution/Transportation Considerations
Challenge #5: Distribution/Transportation Considerations
11©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
Challenge #6: Returns Efficiency
Traditionally regarded as a “necessary evil” by most
businesses, today an efficient returns management process
is an essential part of the overall customer experience.
Consider these facts: Research by ComScore found 85
percent of consumers said they would not buy again from
a retailer if the returns process were not convenient, while
95 percent said that they would return to a retailer with a
convenient returns policy.
It’s important then for a retailer – regardless of size – to
adopt a returns policy that prioritizes efficiency and service.
While free shipping is certainly important to a customer-
focused returns policy, so are a number of other factors,
including the following:
• Seamless resolution. Once your customer returns
a product, what happens next? If the product is
undamaged, it can be returned to inventory. But what
is the process for that, and how will your customer be
credited for the return? Does the item need to be sent
out for a repair and returned to the customer? Is it under
warranty? Can the product be refurbished and possibly
sold on a secondary market such as eBay or an outlet
store? And most important, who is going to manage this
process? Many smaller businesses simply do not have
the resources to take on the significant task of returns
management, and they entrust this specialized skill to an
experienced logistics partner.
• Flexibility in scheduling. Build a returns management
strategy that gives you the level of service you need. Do
you need to receive returns on a daily basis, or would a
weekly or even biweekly schedule be more appropriate
for your business?
• Centralized returns centers. Where exactly do you
want your returns delivered? A growing trend is to
process returns at a dedicated returns center rather
than via a traditional distribution center. For one thing,
most distribution centers are geared toward outbound
shipments rather than processing individualized returns.
A dedicated returns center allows businesses to focus
resources and build best practices.
• Convenient and well articulated. Take steps to
ensure your returns policy is well publicized and simple
to understand. Include information prominently on your
website, and insert a returns label and information
inside the shipping carton. You might also consider a
technology-based Returns Material Authorization (RMA),
whereby customers must contact your business, either
through an 800 number or a website, to notify you of
their intention to return a product and to receive an
RMA number.
• Tracking and visibility. Allowing visibility into the
process can give customers direct information about the
status of their return and some degree of explanation
should a delay occur.
• Sustainability. Since roughly 80 percent of returned
merchandise is not defective, most products are eligible
for sale on a secondary market, including a retail outlet,
an overstock store, or a website (i.e., eBay).
A well-managed returns process will enable a business to get
ahead of the game, to know exactly what products are being
returned and when, to have inventory in place to quickly
offer replacements, or to perform repairs. And perhaps most
important, a well-executed returns program will allow 24/7
insight and tracking capability for customers.
Challenge #6: Returns Efficiency
12©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
Bringing it all Together – Choosing the Right Logistics Provider
A business will learn quickly that its choice of logistics provider
will directly impact its success in implementing critical supply
chain changes. It can be difficult though to select the right
logistics provider. With so many options from which to choose,
how can a business possibly decide which solution is best
and which logistics provider can provide the top-level service
it needs?
Following are a few considerations to keep in mind when
considering the best logistics partner to add to your supply
chain team:
• Single-source/comprehensive solution provider. Given the complexities of today’s omni-channel supply
chains, it is imperative to have a logistics partner that can
offer complete management of the entire process.
A qualified logistics provider will offer comprehensive
services ranging from order management, inventory
management, warehousing, kitting, picking, labeling/
shipment preparation, transportation, delivery, and
all back-end functions, including record keeping and
compliance mandates. And a comprehensive provider
should also provide reverse logistics services to process
merchandise returns.
• Experience. There is no substitute for experience.
And with so many providers from which to choose, it’s
essential for a business to carefully research a logistics
provider before signing on the dotted line. An experienced
provider will have documented experience in planning
and executing omni-channel logistics plans for other
businesses. Unless a provider has been through the
process, and knows firsthand what to expect, any claims
of “expertise” should be met with skepticism.
• Customization and collaboration. It’s essential to
view your logistics provider as a partner. You want to build
a relationship based on mutual understanding of your
business objectives, priorities, and needs. This information
sharing can only happen through many, many direct
conversations and ongoing open lines of communication.
A qualified logistics provider will use this information to
create a customized solution to meet your specific needs.
• Customer service. Equally important is a high level of
customer service. Services should include a dedicated
representative with whom you have a personal relationship
and direct contact information. Your customer service
representative should be fully aware of your supply chain,
provide you with regular updates, and know about – and
resolve – any snafus or changes before they become
problematic.
• Scope of service. Today’s logistics providers are able to
offer a range of service options that can be customized to
fit a business’s precise needs. If you find that a logistics
provider is forcing you to adapt your needs to meet its
capabilities, it’s a good sign that the carrier is not up to
the job.
Bringing it all Together – Choosing the Right Logistics Provider
13©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
ConclusionSmall- and mid-sized businesses face unprecedented
challenges in adapting their supply chain practices to
meet changing customer expectations. Today’s consumer
expects levels of flexibility and efficiency that were previously
unthinkable. Smaller businesses have no choice but to find a
way to adapt.
The first step is to consult with an expert – a logistics partner
who can help find an affordable and workable solution. Many
smaller businesses are so busy managing their day-to-day
operations that they have no idea about the tremendous
innovation that has taken place within the logistics industry.
One Ohio-based manufacturer of garden equipment, in fact,
had grown so accustomed to the transportation fees charged
by its long-term provider that when it agreed to consider a
bid from another firm, its response was: “We didn’t think the
numbers were real, they were so low,” the manager said in a
case study.
Logistics efficiencies and innovative solutions are happening
every day. And as customer preferences continue to evolve,
smaller businesses may be pleasantly surprised at how
effortlessly they are able to meet those expectations.
Conclusion
14©2016 Purolator International, Inc.
Top Logistics Challenges for Small- and Medium-Sized Businesses
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Top Logistics Challenges for Small- and Medium-Sized Businesses
References
References
Banjo, Shelly, and Stevens, Laura, “Free Shipping is Going to Cost You More,” The Wall Street Journal, October 22, 2014.
Dittman, J. Paul, PhD., Executive Director Global Supply Chain Institute, The University of Tennessee, “Transform Your Supply Chain with Collaboration,” Spring 2016.
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