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  July 6th, 2024 | Written by

8 Game-Changing Moves for Logistics Companies Pursuing Growth in 2024

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Every year is a chance for growth, whether a logistics company is an established entity or a small business in the industry. No matter what stage they’re in, the most important thing is making the right decisions to propel them forward rather than backward. 

Read also: 4 Strategies Every Logistics Company Must Start Doing

It might seem like everybody already knows the road to success in 2024. In reality, there’s not a one-and-done solution for all services. Here are some positive moves to influence a business’s chances of making it big.

Enhance Transparency

Logistics companies depend significantly on their patrons, whether they focus on a B2B or B2C model. In 2022, about 60% of consumers think trustworthiness and transparency are the most significant traits of a business worldwide. Thus, establishments that want to thrive in this industry must seek ways to keep transparency.

For example, keep customers updated. Have a mailing list to share the latest pricing and shipping fees. Even weekly newsletters can affect how customers view the company and whether they will be loyal.

If a customer requests a shipment, let them know the status of their delivery. It’s reassuring for people to track where their parcel is, and it impresses them that a logistic business can provide real-time data.

Provide Employee Training

A logistics company only succeeds when its employees are well-trained and knowledgeable about the industry. After all, they are responsible for company processes like sales, marketing, and inventory handling. Businesses should focus on fostering their talents. Look at them as an investment in the company’s long-term success.

One underrated part of employee training is being able to handle different departments. More prominent companies will have dedicated people to their own niches. However, it’s good to have each person expand their range for the future.

Businesses can also offer workshops and one-on-one training sessions with the employees. The industry is always growing, and the workers may not be fully aware of it since they’re focused on work. Give them the knowledge to keep up with the competition. 

Improve Warehousing

Warehousing is one of the most significant facets of logistics. As the company grows, more bulk items will require storage and packaging. To keep up with demand, it’s important to find ways to expand and be more efficient.

For example, an inventory tracking system can empower logistics managers to measure warehouse space and monitor the business’ stocks. This solution can be combined with security measures to keep valuables safe. 

Running a warehouse entails multiple upkeep expenses. Try to see what upgrades may minimize expenditure. For example, fabric buildings are gaining momentum since they don’t have screws or nails, mitigating leaks, rust, and corrosion. On average, repair costs can be as low as $2 per square foot for fabric buildings, while replacement steel is up to $7 per square foot.

Invest in Better Transportation

Transportation has a big impact on logistics companies. To continue growing, businesses must improve their processes of delivering different transports. Having GPS trackers on the company vehicles can ensure everything is moving according to schedule. It also encourages drivers to be more productive.

Another investment that may change the game for logistic companies is self-driving vehicles. Truckers can drive for 12 hours every day but require rest to recuperate. Having autonomous trucks go to and from a destination at every hour of the day can make a big difference.

Granted, self-driving automobiles can be a costly investment. Medium to large-sized businesses can shoulder these potential upgrades. However, it’s best to assess the budget. Only revisit the idea if it seems feasible and growth is steady. 

Implement Lead Generation Strategies

Logistics companies thrive on word of mouth, but relying on that alone can be dangerous. Explore different lead generation strategies to grow the customer base and uplift the business. Have a mix of traditional and digital marketing.

For traditional marketing, events can be greatly beneficial for networking. Host different trade shows or attend conferences and seminars related to logistics. Those discussions can help reel in many potential patrons. 

In terms of digital marketing, SEO is imperative. There are about 8.5 billion Google search queries daily, with the average person performing three to four searches daily. Have a prominent presence through social media. Create a website to attract the searches related to logistics services. 

Integrate Performance Analysis

Some companies make many decisions but fail to track them. That makes it hard to know what’s causing slowdowns or improvements. Instead of letting those efforts go to waste, consider adopting a performance management and analysis process. 

Pick out KPI metrics to keep track of. For example, some logistics companies want to improve delivery performance and rates. Check the number of successful shipments and round up the numbers throughout a period. Compare it later to see whether the business is hitting its mark.

Another key metric to assess is the profit margin. Businesses need to maximize their earnings when making deliveries to have the funds to grow further. Anything below it can cause problems that are difficult to recover from. 

Create a Strong Plan 

If logistics companies lack a strong long-term plan, they should adopt one as soon as possible. Pursuing growth requires a clear timeline and an outline of how to achieve those objectives. Many establishments close their doors early because they fail to achieve this growth. In 2022, new businesses will have a one-year survival rate of 74.4%-78.6%, depending on the location. 

Logistic services are highly survivable if they plan for the years ahead. Create different milestones to reach. Whether it has to do with increasing customer base or boosting delivery capabilities, set a goal to work toward at the end of this year and the ones to come.

The logistics company doesn’t have to shut down if things don’t follow through. Instead, assess the shortcomings and adapt the timeline for the future. Challenges are bound to arise, and professionals can only manage how they will react to such adversities.

Utilize Specialized Technology

Logistics companies should keep up with the times and invest in specialized technology. It’s 2024, and the age of digitization is more prominent than ever, especially with the rise of artificial intelligence. After all, AI can provide robust predictive algorithms and automate repetitive tasks, which saves energy and time for employees. 

Many companies within the industry are already catching up. According to the U.S. Chamber of Commerce, about one in four small businesses utilize AI in their processes. Bigger services are likely making their usage the norm, so stay caught up.

Aside from AI, logistics companies can also take advantage of other hands-on technologies. For instance, robotics can easily take over packaging duties. Instead, professionals can direct the workforce towards other company endeavors, maximizing productivity. 

Aiming and Adapting for Growth

Logistics professionals should be detail-oriented and analytical about different factors. Individual changes for each facet may seem subtle, but they all improve the business. Strive for these improvements to increase a company’s overall survival.