Ensuring that every item is in the right place at the right time can be quite difficult- there’s just so much work that needs to be done! If your business is middle-sized to big-sized, this task will be even harder.
But even if your company is small, you must still keep track of the planning process, including item movement and placement. If your cargo reaches its point of consumption in due time, and your point of origin equipment is ready to ship, your company’s logistics runs well. If not- time and money are quickly lost, and the company could take a hit.
You must therefore plan your resources well and learn how to move things around efficiently. Your warehouse facilities are important, but so are inventory planning, resource management, and supply coordination; not to mention transportation and customer response. These factors must be taken into account very carefully.
With the holidays knocking on our door, I can see why so many business managers are starting to freak out. The holiday season is hectic. A company’s resources can quickly change, so it’s time to develop a logistics guide and stick to it. Here’s how to prepare your supply chain for this season.
Help your customers buy early
This season is different from any other holiday season we’ve been through. That’s because the Coronavirus pandemic has changed things around for good. This year, we won’t see too many last-minute decisions among customers. Most clients already pre-ordered their Christmas gifts on Black Friday, while others did it all the way back in October. Since stores are not open to the public anymore (not everywhere in the world at least), and there’s a fear attached to in-shop purchasing, a higher number of customers decided to get their gifts online; and so, transportation can get messy if it doesn’t work right.
However, if your customers are not ordering online yet, here is what you can do to persuade them to buy now. The longer they wait, the messier your logistics process will get. Here’s what you can do.
-Present the product’s benefits in more detail. Don’t stop at only listing the product’s features. Get access to a Virtual Assistant Platform to automate your listing processes and get your personal tasks done in no time.
-Use vivid language, but don’t go overboard with it. Express what you mean in a simple yet motivating way. For example, instead of saying, This car protects people in case of an accident, you could say, If you’re driving this car, you’ll walk away unharmed in case of an accident.
-Do not use jargon, not everyone gets it, and you might lose clients because of this. I
-Customers don’t hold specific data in their minds for too long, so make it short. Present your product’s benefits in a concise way. You could even summarize your product’s strengths; for example, instead of saying, Here are 12 reasons to buy this product, change it to, Keep these two things in mind.
-Highlight your company’s benefits from a logistics perspective. If you collaborate with Amazon, for example, expose the transportation benefits that your company is offering. What differentiates you from your competition in terms of logistics?
Optimize your inventory accordingly
If you haven’t done this by now, get to work. This year, your inventory must be well-organized. So, start optimizing it.
-Measure your results by using the right KPIs such as stock rotations and customer availability rate.
-Use the classical ABC analysis to track your product quantity and measure quality- pair it with a PARETO analysis.
-Use chatbots to promote your content on social media and track those results as well.
-Make an inventory vs. sales cost analysis to examine if your products sell well, and which ones should be taken out of your inventory.
-Reduce the MOQ or the Minimum Order Quantity. Do not produce more than you can sell, this will add to your overstock. Instead, negotiate with the supplier or change it, if they don’t agree with your requirements and do not satisfy your needs.
-Develop a more centralized inventory, especially if you have more than one warehouse, store, or factory. Estimate your transportation costs accordingly and include specific analyses on financial, logistical, promotion, destruction, or productivity costs. Be sure to include everything in your inventory.
Be prepared for this year’s shipping costs
During the COVID-19 pandemic, things have changed for the worse. The transportation costs will most likely increase as the holiday season gets closer. Some transportation companies offer little to no help to small businesses; others are kind enough to work with the managers. Your best option would be to hire a mix of carriers and choose the one you like the best.
You could look at regional carriers first since their costs are usually lower. Check out their services, and if you’re not satisfied, change the company. Another important thing to look at is the last-mile delivery costs. Choosing a local or even a national company will help you out financially.
Get the necessary support
And here’s the last thing we’ll be discussing today- getting the necessary help. If you’re not doing well and don’t know where to start, seeking support should be something to prioritize. You could develop new partnerships and engage with new elements. Think about what changes you could benefit from.
Could you be working with superior technology? Could you offer your staff a more flexible schedule? What other valuable assets could you be bringing to the company? How could you change it for the better? What part of your logistics process could actually improve?
Preparing your company for this holiday season will be nothing but ordinary. However, you must learn how to predict 2021 trends and bring your logistics process to a new level. Do not leave things for the last minute, start preparing now. If you realized that you need support, go get it. If you realized that you could change some things to save your business, go do them.
Conclusion
You could be needing eCommerce support or new delivery options. Maybe your KPIs aren’t functional. Maybe your customer’s orders are not in place at the right time. Maybe you are not working with a cost-effective delivery company that gets your goods safely from the warehouse to the customer. Maybe something must change- but you don’t know what.
If that is the case, follow the guideline above, and add whatever you see necessary to it. You will have a great holiday season from a logistics perspective if you can set everything up for success ahead of time. Prepare, work hard, and accomplish. Make this your 2021 goal.
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