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Optimize Your Business Health: Why Now is the Perfect Time for a Small Parcel Transportation Checkup

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Time for a Checkup!

Everyone knows how important it is to pay close attention to their personal health. Health guidelines will tell us that we need to have a physical once a year, see a dentist every six months, or to start having specific tests done once you reach a certain age.  Failure to abide by some of these guidelines or ignoring environmental issues could have painful, even dire results.

It is even more important to get engaged with your doctors if you notice any changes in your body, like new aches and pains, less energy, or if just don’t feel right. We are fortunate that our bodies can provide us with signs that it is time to check things out!

Where are we going with this?

At this point, you might be wondering why a Logistics company is writing an article about personal health?? Well the reason for this is that we feel that you can draw a parallel between how you approach your personal health and the way that you address the health of your current Small Parcel Transportation program!

However, the difference is that there are no specific guidelines that tell you when it is time for a Small Parcel program checkup.  Also, there may not be any obvious signs that you have issues with the health of your Small Parcel agreement or shipping program. Unfortunately, the uncertainty of how and when to examine your existing Transportation program can lead to undetected internal bleeding……. OF YOUR PROFITS!

Is it time for a Physical?

One of the first things that you need to consider when trying to determine if it’s the right time to assess the health of your Transportation program, is current market conditions. You need to “Check the Pulse” of the Small Parcel market, to determine if it’s safe to proceed. You don’t want to open negotiations in a market where capacity is tight, or when carriers are trying to boost margins. This could actually lead to worsening of health of your transportation program!

If you are wondering if current market conditions are appropriate to consider moving forward with an exploratory surgery of your Small Parcel agreement, the answer is an overwhelming YES! Recent developments in the Small Parcel arena have suggested that now is the perfect time to make a move.

Over the past few weeks, there have been some interesting developments with the major Small Parcel carriers that help to confirm that these carriers are, and will continue to battle for packages. First, there was the news that UPS had been awarded a significant air cargo contract by the United Stated Postal Service (USPS). This new agreement will greatly expand the existing relationship between the two organizations. The important thing to realize is that this business had been previously been handled by FedEx.

So, we feel that this will likely contribute to greater intensity in the battle for packages between UPS and FedEx. The loss in revenues that this will cause, along with the additional Air capacity this will create, will likely inspire FedEx to offer more competitive rates for Express packages.  This will help to intensify the battle for Air packages that typically provide higher margins for Parcel Carriers.

From the UPS perspective, they are still pushing hard to win back volumes lost last year during the Teamster negotiations. We have recently heard from customers that they are seeing more aggressive UPS discounting and pricing, in an effort to win back their volumes.

Also, in an interview on CNBC on March 26th, UPS CEO Carol Tome’ outlined her “1+2” plan to improve UPS Financials. She described that year 1 initiatives will revolve around efforts to grow “Volume, Revenue and Operating –Dollars”, and that years 2 and 3 they will concentrate on “Volume, Revenue, and Operating –Margin”. So, in our eyes, this can only be beneficial for shippers as when carriers stress their desire for volume and revenue growth, it typically suggests a willingness to increase discounts.

So, to sum things up- It’s time to book your appointment with your Doctor!

How to choose a doctor?

So now that you know that is time for an assessment of your Shipping program, what do you do?  You could just call in your carrier representative and tell them that you are looking for better rates, because you know that they are looking for volume. You can threaten to move your business “to the other guys”. However, we can tell you that this will most likely result in your carrier providing you with a lot of detail and presentations related to how their service provides tremendous value to your company. This will probably lead to a long, drawn out process, that will end with little or no movement on rates. Remember, the longer the process goes on, the longer you could be bleeding profits!

Basically, trying to negotiate your agreement without the help of the experts, is like trying to do your own personal health physical. Would you really consider checking all of your own vitals, and assessing your health based on information that you find on Google???

So, if you are really concerned about the health of your Logistics program you really need to engage with a company that has an in depth understanding of Carrier agreements and pricing. It is crucial to take a deep dive into the contents of your carrier agreements, including rates, discounts, and terms and conditions. You will need to understand how your agreement stacks up compared to other companies with similar shipping characteristics in order to determine if you have unhealthy agreements.

The best part of this is that the companies that provide these services (including ICC Logistics), do not charge a co-pay for a Transportation Program check-up!

Time for Surgery

Once the health of your Transportation and Logistics program has been properly assessed by a professional, they may find that you are in good shape and that there is no need for further action. Or they may find that you have some issues, and need to take action to avoid continued damage to the overall health of your business.

The bottom line is that there will need to be a solid strategy built to help cure the issues that are having a detrimental affect on your profits. This is the same thing that Doctors do when they identify a major health issue. They will prepare a plan of attack that will help to ensure the best outcome.

Please reach out to us today so we can explain how our surgical approach to negotiating Carrier contracts can help to ensure the long term health of your profits and business. We can assure you that you will be able to get an appointment with us a lot faster than you can get one with your Doctor!

8 Steps to Better Collaboration: Procurement and Logistics

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Unlock the True Potential of Synergy and Collaboration 

I have always been intrigued by the relationship between corporate procurement departments and corporate logistics departments.  The question that always comes to mind is, which department is best suited to negotiate the “best” deal for the company?  There is a reason why this intrigues me.

Several years ago, we were asked by the corporate logistics department of a major apparel retailer to analyze their parcel carrier contracts to advise them what potential savings they could achieve as a result of our comprehensive benchmark analysis services.   Unbeknownst to us at the time, the corporate procurement department of the retailer had been given the ultimate authority to finalize the negotiations with the parcel carriers.  

Negotiations had been going on between the retailer and the parcel carriers for months, which is certainly typical with large parcel spend contract negotiations. In the end, the procurement department made the decision to end the back and forth negotiations and sign the “latest and greatest” offer from the Parcel carriers. This decision was apparently made because of the considerable amount of time the negotiations had been ongoing.  However, one key element the procurement department failed to consider, was the fact that the data and analytics we had provided to the logistics department projected that if they did sign the “latest and greatest final” parcel carrier contracts the carriers had presented, they would be leaving over $12 Million in potential savings on the table.   

So of course after hearing this decision by the corporate procurement department, my immediate response was, “how will you explain to your CEO and CFO that you left $12 Million on the table?”  Secondly, “how many garments would you have to sell to generate $12 Million in net profits for the company?” 

We assume those discussions with top management did not go well.  

It is clear that the relationship between corporate procurement departments and corporate logistics departments is critical for the overall successful functioning of any organization. While they are separate and distinct functions within a company, their activities are closely intertwined and complementary.

Collaboration is King

Procurement and logistics departments should collaborate closely to ensure the smooth flow of goods and services within the organization. While procurement is responsible for sourcing and acquiring the necessary materials, products, services, and comprehensive contract provisions, logistics provides insight into the company’s actual needs for transportation services, storage, and distribution of these items. Effective collaboration and data sharing, between these two departments is essential to meet the company’s overall operational needs and even more importantly, customer requirements.

Procurement departments must rely on logistics teams to provide insights and data related to demand forecasting and inventory management. Logistics departments offer valuable information about transportation capacity, lead times, storage capabilities, freight rate structures, contract pricing requirements and anomalies, as well as overall supply chain constraints. This information helps procurement departments make informed decisions about when and how much to procure.

Both procurement and logistics departments should interact with suppliers and service providers. Procurement typically negotiates contracts, establishes relationships, and manages supplier performance. They should always work collaboratively to optimize the supply chain, ensure efficient operations, and maximize cost reductions and customer satisfaction.

Working together

Procurement and logistics departments that collaborate effectively tend to understand each other’s needs and objectives, thereby creating the best solution for all parties involved.

Shared Goals and Objectives: Procurement and logistics should align their goals and objectives to ensure a unified approach. This includes understanding the company’s overall logistics requirements, cost targets, service level expectations, and strategic priorities. By jointly defining the desired outcomes, they can work together to achieve the best value for logistics services.

Early Involvement: Procurement should involve logistics early in the procurement process. By engaging logistics experts from the beginning, procurement can gain insights into specific logistics requirements, challenges, and opportunities. This enables them to consider logistics-related factors when evaluating potential suppliers, negotiating contracts, and making sourcing decisions.

Collaborative Supplier Selection: Procurement and logistics should collaborate in selecting logistics service providers. Logistics should provide input on supplier capabilities, service levels, geographic coverage, and any specific requirements related to transportation modes, warehousing, or distribution. Procurement can then leverage this information to evaluate potential suppliers, negotiate contracts, and select the most suitable logistics partners.

Performance Metrics and KPIs: Procurement and logistics should define key performance indicators (KPIs) and service level agreements (SLAs) together. Logistics should contribute their expertise in identifying relevant metrics, such as on-time delivery, transit times, order accuracy, and responsiveness. Procurement can then incorporate these metrics into contracts, ensuring that they reflect the company’s expectations for value and service quality.

Continuous Performance Evaluation: By regularly reviewing supplier performance against established KPIs, they can identify areas for improvement, address any concerns, and drive accountability. This evaluation process should be collaborative, with logistics providing input on operational aspects, and procurement focusing on contractual compliance and cost effectiveness.

Data Sharing and Visibility: Procurement and logistics should establish effective data sharing and visibility mechanisms. They should leverage technology solutions that enable real-time information exchange, such as transportation management systems (TMS) or supply chain visibility platforms. This shared visibility allows both departments to monitor logistics operations, track shipments, identify bottlenecks, and proactively address any issues that may impact value or performance.

Continuous Improvement Initiatives: Procurement and logistics should jointly drive continuous improvement initiatives. By sharing insights, best practices, and lessons learned, they can identify opportunities for process optimization, cost reduction, and service enhancement. Regular communication and collaboration foster a culture of continuous improvement throughout the procurement and logistics functions.

Supplier Relationship Management: Procurement and logistics should work together to manage relationships with logistics service providers. They should collaborate in supplier performance reviews, contract renewals, and contract negotiations. By maintaining strong relationships with logistics partners, they can leverage these partnerships to drive value, innovation, and continuous improvement.

parcel and freight contract audit service

So while we’re sure most companies would think twice about leaving $12 Million in potential savings on the table, (especially when the savings projections were clearly documented as they were in this case), when dealing with logistics and supply chain operations the three most important elements are Communication, More Communication and Even More Communication!   

 

Why Data Accuracy is Critical

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Why You Need to be Outsourcing Your Logistics and Supply Chain Data Analytics

Many companies struggle with not only how to obtain, but just as importantly, interpret Logistics and Supply Chain Data Analytics.  Without accurate data analytics it is impossible to create meaningful reports of comprehensive shipping data, and therefore inhibits a company’s ability to make sound business decisions.  

Companies should always consider outsourcing this function to firms that (1) will collect only the proper data, (2) will properly interpret that data, (3) will audit that data to ensure its accuracy and quality and (4) provide meaningful ongoing reporting so the company will be in a position to always make sound business decisions.

Outsourcing logistics and supply chain data analytics will bring several benefits to a company. 

Expertise: Outsourcing gives you access to a team of experts who have the necessary skills and experience to analyze data effectively. These experts will provide valuable insights and recommendations to optimize your supply chain operations and continually improve efficiency.

Cost-effective: Outsourcing is a cost-effective option compared to hiring a full-time team of data analysts. It will reduce overhead costs such as salaries, benefits, and infrastructure expenses.

Improved efficiency: Outsourcing lets you focus on your core business functions while leaving the data analysis to the experts. This results in improved efficiency and productivity, as you will spend more time on other critical business areas.

Access to advanced tools and technologies: Outsourcing provides access to advanced data analytics tools and technologies that may be expensive to acquire and maintain in-house. You will stay ahead of the competition and make better-informed decisions.

Scalability: Outsourcing provides a scalable solution to your data analytics needs. As your business grows, your data analytics requirements may change, and outsourcing will allow you to adapt to these changes more quickly.

Data Analytics is not a one and done process

Data analytics analysis must be an on-going process to obtain real value and businesses need to be able to trust the data that is being analyzed and reported.

The goal of any business analytics program is as follows:

The business environment is constantly evolving, and new challenges and opportunities arise regularly. Data analytics is a continuous cycle of data gathering, analysis, and action that requires monitoring.

Changing business environment: Ongoing data analytics analysis keeps businesses up-to-date with the latest trends and provides the ability to adjust their strategies accordingly.

Continuous data gathering: Businesses must continue to collect relevant data and update their analysis as new data becomes available.

Continuous improvement: By identifying areas for improvement and making necessary changes, businesses will optimize their performance and achieve better results.

Proactive decision-making: By analyzing data on a regular basis, businesses will identify potential issues before they become problems and can take corrective action to mitigate them.

Why use a qualified Third Party and Impartial resource?

Customers shipping data that is managed by a qualified third party and impartial resource is essential to obtaining clean and truly accurate logistics data for the best supply chain analytics and planning. 

Expertise: Third-party data analytics consultants have the necessary expertise and experience to manage shipping data effectively. They have access to advanced tools and technologies to identify errors and inconsistencies in data, and they provide valuable insights and recommendations based on their analysis.

Impartiality: These firms are impartial parties who provide an unbiased view of all of the data they analyze. They review the data objectively and provide feedback that is not influenced by internal biases or agendas.

Consistency: They provide consistent management of shipping data across multiple locations and carriers. They ensure that the data is accurate, complete, and up-to-date, regardless of the carrier or location.

Cost-effective: Outsourcing the management of shipping data to a qualified data analytics expert is a cost-effective option compared to hiring an internal team of data analysts or dedicating internal resources to attempt to manage the data.

Scalability: These data experts will provide a scalable solution to managing shipping data. As a business grows or changes, they will adjust their services and provide additional support as needed.

Limited resources: Companies have limited resources dedicated to managing shipping data, which will lead to errors going unnoticed. 

Internal biases: Companies inherently have internal biases that influence how they manage shipping data. They may overlook errors or inconsistencies that are not aligned with their internal priorities or goals.

The Bottom Line!

A major benefit of outsourcing your logistics data analysis is the ability to benchmark your information against a vast data pool of like shipping characteristics. This is nearly impossible to replicate in-house.

Access to a vast data pool: Data resources that is continuously updated and contains shipping data from a range of industries and companies. This data is used to benchmark a company’s shipping data against similar shipping characteristics and identify areas for improvement.

Industry expertise: Industry-specific expertise that helps companies understand how their shipping data compares to industry benchmarks. This knowledge is used to develop more effective strategies to improve supply chain operations.

Objective analysis: Provides an objective analysis of a company’s shipping data, which will identify areas for improvement that may not be immediately apparent to in-house staff. This helps companies make more informed decisions about their supply chain operations.

Cost-effective: Provides the necessary expertise, tools, and resources to conduct the analysis at a lower cost than an in-house team.

In Summary

Outsourcing your Logistics and Supply Chain Data Analytics:

  • provides a cost-effective and scalable solution that will improve efficiency, provide valuable insights, and allow you to focus on your core business functions.
  • ensures a qualified third party and impartial resource obtains clean and truly accurate logistics data for the best supply chain analytics and planning. 
  • Has the necessary expertise, impartiality, and scalability to manage shipping data effectively and efficiently.
  • enables businesses to stay current, continuously improve their operations, and make proactive decisions based on accurate and up-to-date information.
  • enables companies to identify and address weak points in their supply chain models and improve overall supply chain performance.
  • guarantees 100% accurate logistics data while also providing valuable benchmarking against a vast data pool of like shipping characteristics. 
  • Ensure companies are using best-in-class marketplace standards. 

Reach out to us today to learn how we can help you achieve your goals.

Leading in Times of Change- The Fundamentals

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As we see it, there are three Key Fundamental Strategies for Leading any company or department for that matter through change.  The first Key Fundamental is the need to perform a Gap Analysis.  This Gap Analysis is necessary in order to measure where your company, or department is today and where it needs to be in the future to ensure your change management strategies will be successful.  In other words, what are the gaps between the present and the future.

carrier contract audit

While performing the Gap Analysis, many companies find that change means moving into the unknown, and that can be a very scary place to be.  It may also include moving from a current “not complex” environment into one that just might be a “very complex” environment.  How a company navigates this process from simple to complex will determine how successful the change management process will be.

The second Key Fundamental Strategy is the need to Map the Journey Forward.  This strategy process serves as the road map to make sure any and all constraints, perhaps within the team itself, or in the individual business processes, will not only be identified, but necessary changes in personnel and processes MUST be made in order to ensure success.  The mapping process will create a compelling vision for the future with the path based on rational business models and analysis.  It should also create and ensure buy-ins from all key stakeholders and build a strong coalition for change.  This includes, identifying and resolving all primary constraints to achieve higher performance; know which condition is weakest, people or processes; and finally, resolve any constraints to achieve the highest Return on Investment.

The third and final Key Fundamental Strategy is the Creation of a Compelling Vision for the Future.  This strategy process will need to ensure that high performance teams are capable of identifying and resolving all possible constraints.  Again, whether they are people constraints or process constraints or both for that matter.  Comprehensive investments made in this area will allow change teams to precisely identify and close all constraint gaps.

It is important to remember that while engaged in this Fundamental Strategy Process of change management, that you will most likely encounter both sides of change.  The first is the technical side of change and the second is the human side of change.  Remember, success will be based on making changes to both sides of change may very well be necessary.  In most cases, making changes to the people side will be much more difficult than making changes to any process.    

Supply Chain Impacts due to COVID-19

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Everstream Analytics monitors and produces a weekly summary of supply chain impacts due to the ongoing COVID-19 pandemic. The update is provided free-of-charge to the industry.

Below is your weekly update:

  1. Vietnamese authorities imposed a two-week COVID-19 related lockdown in Mekong Delta and Ho Chi Minh City metropolis, with restrictions to be in effect from July 18.
  2. Myanmar announced a nationwide COVID-19 related lockdown from July 19, while declaring public holidays from July 17 until July 25 to contain the spread of COVID-19.
  3. Thailand has expanded COVID-19 restrictions that include travel curbs and a night-time curfew to three more provinces – Chonburi, Ayutthaya, and Chachoengsao – from July 20.
  4. Authorities in Libya imposed restrictions that require all government agencies to reduce attendance at work to 25 percent, until at least July 25.
  5. Mozambique tightens nationwide COVID-19 measures through August 17, with nightly curfew hours expanded to last between 21:00 and 04:00.
  6. Chile extended its border closure measures until July 25 due to Delta variant concerns, with all existing domestic restrictions remaining in place with the extension.

Need help navigating these disruptions?  Reach out to ICC today to learn more about our supply chain growth consulting services.

Thank you to Everstream Analytics for this valuable information. Please check out their platform by visiting their site.

Guest Post: 6 Reasons Why Logistics is Important

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6 Reasons Why Logistics Might Be More Important To Your Business Than You Think

Guest Post by: Howie Bick, The Analyst Handbook

Logistics is sometimes overlooked as an important part of a company’s underlying business, and plays an important role incorporating a variety of pieces to a business’ puzzle. Logistics is often coordinating between two parties, how a package goes from one place to another, and ensuring that your company has the necessary materials or resources it needs to keep moving forward. It is often tied to several different aspects of a business, from the time it takes for raw materials to arrive, to the time it takes to deliver your finished product, or the coordination between the purchasing party and the selling party. Whether your business is a marketplace provider, a wholesale manufacturer, or a B2C company, logistics plays an important role in the way the business operates, the type of infrastructure a company builds, the type of brand image you create, each customer’s experience, and the customer service aspect of your business as well.

Company Infrastructure

Logistics is an important part of a company’s infrastructure, because the way company’s process sales, order new materials, and coordinate their delivery play a major role within a company. The infrastructure behind a company is often closely tied to the logistics it has in place. Whether it’s the trucking company it utilizes to move goods from A to B, the backend development it has in place for its technology, or the way they process orders from purchase to delivery, logistics is how these tasks are completed, and continue to be completed. 

Having sound logistics can provide companies with a variety of benefits, from their corporate finances, to their operational expertise. Having strong logistics can make it easier for companies to expand, and increase in size. They’re able to have a strong foundation to build off of, and can have a strong infrastructure to begin with. Without a sound logistics plan, a company’s business can see increased lead times, less sales processed, and less goods produced. Having a solution to continue the flow of goods for a company, is what keeps the business going. If you’re a manufacturer, without having the raw materials on hand, you can’t produce the goods you need to sell. Solidifying the logistical aspect of your business, can be a great way to increase the velocity at which you sell, decrease the amount of time between production and delivery, and keep the business running smoothly.

Delivery

A big part of logistics is the time it takes to deliver your products and services to your customers. Logistics is how you’re able to distribute your goods, ship your products, or move your inventory from one location to another. Without having a strong logistical structure, you run the risk of losing time on delivery, frustrated customers, and having shipments arrive late. While some people may feel delivery dates aren’t important, many would tend to differ. 

As the world we’re in continues to gravitate toward same-day delivery, next-day deliver, or two-day delivery, logistics has become more and more important. Consumers expect goods to arrive within a certain timeframe, have the opportunity to track their products along the way, and compare one company’s delivery service to others. While some people may not feel delivery is so important, others have been using it as a way to gain a competitive advantage, build market share, and further develop their businesses.

Brand Image

Part of the way brands are built and companies are created is based on how they’re able to process orders, and produce the desired result their customer is looking for. A company’s brands, and brand images, play an important role in the type of position it has in a marketplace, the type of reputation it builds with customers, and what customers can expect to experience moving forward. Logistics factor into that equation. Companies that have a strong logistical footprint, are able to deliver on the estimates it provides to customers, its logistics can continually produce for them on a consistent basis, and continue to build up more brand loyalty with purchasers along the way. 

In the business environment we’re in today, many companies are looking for more and more ways to expand, grow market share, and enter into new industries. In order to compete, smaller or existing companies can utilize logistics to keep customers happy. By having a strong logistical presence, you increase the likelihood of producing for your customers on a continuous basis, not give them any reasons to leave or entertain new companies, and build brand loyalty with them as well. Through having strong logistics, you can work to protect the market shares you’ve been able to capture, and the businesses you’ve been able to build. 

Costs & The Financial Side

Logistics have the potential to influence your business from a financial perspective, by increasing delivery costs, seeing increased returns, rising sales revenue, or through the investments made into logistics. Logistics for a company can sometimes be costly as well. It might be a large undertaking or cost a substantial amount in order to open a new warehouse, or build a new hub, but it offers you the opportunity to cost your delivery costs in half. 

Taking a look at it from the financial analyst job description angle, evaluating whether an investment into logistics is worth the investment, or the upfront cost, depends on how much you feel it might save you delivery costs, the type of synergies or benefits it might offer you, and where your company is currently at logistically. Considering the cost to deliver goods, the time spent driving, the gas spent, the tolls accumulated, might not feel like a lot, but at scale, over a large amount of time, when you’re a large business, processing orders, it can add up. You can use good logistics practices as a way to decrease costs, and increase profits. That new hub might reduce delivery time in half, or cut the distance traveled by a third. Doing that trip at scale, over a year, five years, or ten years, can really add up and make a different cost wise. You might be able to generate more sales by having a stronger logistical footprint. Customers might be more satisfied, or more inclined to reorder from you based on the time it took to receive their order, or the results you produced. 

Customer Experience & Customer Service

Customer experience is ultimately how customers feel, and whether or not they were satisfied with the way the company performed, or the experience they received from the company. As previously mentioned, more and more companies have been looking for shorter time frame solutions, same-day, next-day, and two-day, that those types of delivery methods have begun to become more and more the norm, or what customers are using to compare your company against. Having faulty or weak logistics, can influence the type of experience customers have. Weak logistics might see frequent downtimes in processing, longer wait times for orders to be processed, and longer delivery times to receive goods. Keeping your customers happy, making sure they are having positive customer experiences, can be influenced by the logistics behind your company. Creating positive customer experiences can encourage customers to speak highly about your business to friends, increase the likelihood they might purchase from you again, and create positive reviews for you where you have a brand presence or location on digital platforms. Strong logistics can play a role in creating a strong customer experience for your clients, and keeping them wanting to purchase more in the future.

Another way logistics can impact your company is through the customer service aspect. Companies who have poor logistical setups, or poor logistical infrastructure, can see an increased number of customer service inquiries as well. When customers aren’t receiving the products and services they offered in a timely fashion, more and more of them will reach out to your customer service staff, look for answers, and inquire about an update. An increase in customer service inquiries can lead to you needing more customer service personnel available, frustrated customers leaving negative reviews, or making it more difficult to provide a solution for each customer inquiry. 

Competing In The Marketplace

With more and more business being created, and entering into new industries, competition has become more prevalent. One way you can work to create a competitive advantage within the marketplace, is by having strong logistics. Strong logistics might make it tougher or more difficult for others to truly compete with you. You might be able to create a stronghold on a particular market segment, by having the logistics and infrastructure built, while new competitors need to create it, and invest in it. On the other hand, logistics can be a way for you to be priced out, or to lose market share from your competitors as well. Companies who can produce products in a faster time frame, provide better customer service, or price their products better, are able to make it more difficult for competitors to compete. If you’re able to create a sustainable and strong competitive advantage through your infrastructure and logistics, you might increase your company’s competitiveness within the marketplace you operate in. 

Conclusion

Logistics have the potential to play an important part in any company or businesses operations. Companies can build a strong logistical presence in order to build great company infrastructure that enables them to expand their businesses more easily. Companies with strong logistics can find ways to decrease time to delivery, reduce the cost or amount spent on delivery, and better compete against their competitors. Companies who have a strong logistical footprint, can see effects on their brand image, with the way customers view their company, the type of brand reputation created, and their position within the marketplace. Logistics has the potential to influence the experience customers are having, which can create a positive impact by having customers become repeat purchasers, recommending their company to friends, and also through sharing their positive experiences online. 

Companies who overlook logistics, can see the number of customer service queries rise, increasing the need for customer service representatives, adding on more costs, and additional customer service queries they need to manage. Having a strong logistics infrastructure and proper planning in place, can help companies compete within the marketplace, create competitive advantages, and build infrastructure that makes it more difficult for new entrants to compete with them. All in all, logistics has the potential to influence your business in a variety of ways, and having a strong logistics foundation and plan can enhance the way a company competes within the marketplace they’re in.

Looking to create a more robust and solid logistics program? Reach out to ICC today to learn more.