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Logistics solutions for scaling a small business

If you're a small business looking to scale, you probably realise the importance of good logistics. Business expansion is impossible without reliable logistics: as orders grow and sales volumes increase, the need for clear processes increases. The right approach to logistics can help increase profits and take your business to the next level.

Let's understand how it works and what steps will help you save time and money. The specialists of LLC «FabriQuanta» will help us with this.
Outsourcing in logistics
It is not always profitable to build your own warehouse and transport systems. This is where outsourcing comes to the rescue.

Co-operation with professional logistics companies offers a lot of advantages:
  • Access to warehouses and transport network. You can use their resources without spending money on building and maintaining your own.
  • Use of technology. Many companies have advanced IT solutions for goods accounting and order processing, which can significantly reduce errors.

This is ideal if you're not ready to invest in your own infrastructure, but still want to improve the quality of your logistics.

Automation
If you already have your own warehouse or are planning to open one, automation is what you need.

Implementing technologies such as warehouse management systems (WMS) and cloud services will give you:
  • Reduced errors. Manual labour is replaced by automated processes, minimising the impact of human error.
  • Speed of order processing. With automation, orders are processed faster and you don't have to spend time searching for the items you need.

This is an important step for any business that plans to expand. Technology is always making processes faster and cheaper.
Optimising delivery
When the number of orders increases, it's important to organise your delivery properly so you don't spend too much money on logistics.

Here are some ideas for optimisation:
  • Shared delivery. This is when multiple businesses share the cost of one car to deliver their goods. For example, your business and a couple of other smaller companies split the transport costs if you all need to deliver goods roughly the same way. In the end, everyone pays less and the car doesn't drive half-empty.
  • Consolidated shipments. This is when orders are combined into larger shipments before dispatch to cut costs. For example, if you have several small orders for the same region, you can consolidate them into one large parcel. This approach reduces shipping costs by reducing the number of flights and getting bulk rates from transport companies.
How to choose the right logistics solution
To understand which business scaling solution is right for you, there are several factors to consider.
  • Needs Analysis. Assess which processes you need to optimise first: warehousing, shipping, automation or something else.
  • Budget. Choose a solution that fits into your financial plan, but doesn't compromise on quality.

Before making a final decision, test the effectiveness of different options, from outsourcing to software. This will help ensure that the strategy you choose works in the real world, not just on paper.
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