Just like big businesses, small businesses have to deal with getting items and getting them to retail stores. One big difference between a small company and a large one is that a large company’s supply chain will often include all four key logistics disciplines: buying, making, distributing, and getting rid of things, or “reverse logistics.”
Small business owners usually focus on just two or three of these areas and rarely hire help from outside. But if you run your system well, production will go up, inputs will be used more efficiently, and there will be less extra stock. A more efficient supply chain also means less waste, lower costs, and a better bottom line.
So, if you want to get the most out of an effective system, it’s important to have a professional handle these tasks. As a small business owner, it makes sense to think that taking care of logistics in-house is the best way to go. But you might run into problems that make it hard for you to solve other business problems and hurt your bottom line. So, even though you should try to learn more about logistics, you should give tasks to a logistics manager.
Transportation is another important issue. Even though the price of oil is going up, it is still important to try to lower transportation costs. Also, if the box is big, you should use materials that are light and small so that you can fit more things inside. Also, it’s important to cut down on the number of boxes used for shipping, so the less filler you can use, the better. If you only need a few trips, the total cost will be less.