Whether small, large, or a start-up, every sector of business requires structured logistics management. Logistics management falls under the broad category of supply chain management. It consists of the end-to-end process between the point of origin and the point of consumption to meet customer requirements, and it is applicable for both product-oriented and service-oriented companies.
The step-wise process of logistic management for a product-oriented company includes information integration, material handling, production, packaging, inventory, transportation, warehousing, and security. Industries related to food, automobile, garment, animal husbandry, oil and natural gas, and other such industries will have this elaborate logistics process. Logistics management for a service-oriented company would focus more on information integration inventory and integrated communication with customers and third party associates (if any). For example, housekeeping and maintenance agencies, at-home medical care providers, and the like. But, for companies that are providing multiple products and services, it requires a more comprehensive logistics management system.
So, when you are starting your own business, the product or service you are providing will determine the kind of logistics management you will require. A proper logistics strategy is crucial for your business and determines the credibility of your company to a large extent. Every business has their individual strategy. If your company is small and caters to one product or service, then you may have a logistics team within the organization. However, if you are starting a business that is complex in nature and involves multiple products or services or a combination of both then it is advisable to outsource the logistics segment of your business to an expert agency. Failing to maintain a structured logistics may lead to failure of business too. Let’s say you want to start a home-made food delivery business. It is going to be a lot easier if you have charted out logistics in advance. If there is a determined process of procurement of raw materials, storage, cleaning, cutting, cooking, packing, and delivering, it will give a more confident launching to your business. Besides these mandatory process, it is very crucial to maintain an inventory of raw materials – food and packaging materials, staff and customer details too.
These steps will contribute to successful operations of your business. Here depending on the size of your delivery business, you would need to choose between self-management of logistics or outsourced logistics. Whatever your choice would be, the intent should be to create a smooth flow of information and service. Hence, chalk out your logistics chart and start your business in a more confident and relaxed manner.