Guide to Logistics Management for Small Business
Getting your goods to where they need to be isn't always easy
Delivering your product to your customers on time and undamaged is more difficult than it may seem, but
it's worth taking the time to develop a successful logistics management strategy for your business. Getting
it right may be the differentiator that puts you ahead of your competition.
The type of product you sell will determine whether logistics management will mean more than just
transportation for you to meet your customers' demands. You will also to consider the following to come up
with a comprehensive and unique strategy for your business:
1.
Transportation
2.
Inventory Management
3.
Warehousing and Distribution
4.
Material Handling
5.
Packaging
Logistics management also covers purchasing (including supply chain management) and customer returns
(reverse logistics). Searching for information using all of these terms will allow you to create the best
strategy for your business.
Action Steps
The best contacts and resources to help you get it done
Seek out third-party logistics (3PL) providers
The trend is towards companies focusing on their core competencies rather than being "jack of all trades".
I recommend: You can outsource everything or shop services a la carte from freight payments and
auditing to warehousing at ITS Traffic Systems Inc. Total Quality Logistics is another 3PL with a reputation
for taking care of its employees in an industry where high turnover is the norm.
Make your choice industry specific
There are 3PLs and carriers that specialize in every industry from clothing to wine. Search for these
organizations within your industry to make sure that your product gets to your customers in the same
condition that it left your facility.
I recommend: If your items are perishable, fragile, or oversized, find the best shipping method and get a
quote sent to you via email at Freight Center.com.
Sharing is caring
Talk to vendors and customers to find out what type of logistics technology and services they currently
use. 3PLs base prices based on volume, and you may want to team up with your partners to maximize
economies of scale.
I recommend: You can implement Trading Partner Integration software such as Red Prairie's.
Improve logistics efficiency with electronic data interchange (EDI)
You can do anything from gathering customer requirements to providing tracking information with
Electronic Data Interchange (EDI) software.
I recommend: 123 EDI makes software exclusively for small businesses that can easily be integrated with
QuickBooks. Companies such as Logistics Planning Services (LPS) will develop software exclusively for
you and your partners.
Use small business logistics services from UPS, FedEx or DSL
If you aren't in a position to purchase expensive hardware and software to manage your company's
logistics quite yet, start with the Web. FedEx, UPS and DHL all have small business centers that can
help...
I recommend: Sign up for small business services at DHL or UPS or FedEx to arrange for shipments and
pickups, track deliveries, estimate freight costs and more.
Network for minority- and women-owned businesses
If you are a minority or women-owned business (MWBE) search for 3PLs and freight carriers that are also
MWBE certified.
I recommend: Start at the MWBE directory.
Take a page from big business
Giant retailers use a system called Vendor Managed Inventory (VMI). So can you.
I recommend: If you carry a variety of items from more than one vendor, make sure you never stock-out
by having the vendors manage your inventory electronically or on-site. Learn more about the VMI method
at VendorManagedInventory.com.
Stay current
Keep apprised of the latest and greatest industry news including rules and regulations and technology like
Radio Frequency Identification tags (RFID) and Global Logistics.
I recommend: To learn more about logistics management than you ever thought you wanted to know, go
to LogisticsMgt.com.
It's reversible
Making returns painless for customers is a good way to build loyalty.
I recommend: You can manage reverse logistics yourself, or hire a 3PL to provide inspection and repair,
such as Insite Logistics.
Tips & Tactics
Helpful advice for making the most of this Guide

Don't promise anything through Marketing and Sales that you can't deliver. A successful logistics
strategy is just as much about getting the customer the right product as it is about getting it there on
time and in one piece.

If you will be sending your customer an order from multiple vendors, decide whether you will
send everything from one point at one time or through multiple shipments and locations. Whoever is
shipping the complementary product might skimp on his logistics costs, and you don't want to have to
pay to replace lost or damaged items due to his penny-pinching ways.

As fuel costs rise, so do shipping costs. Use the fluctuating price at the gas pumps to decide
when its time to reevaluate the costs of your company's logistics strategy.

It is important to incorporate your customers' feedback and industry trends for successful
logistics management. Soliciting feedback from your customers on your website or through check-up
calls is a good way to find out what needs to be tweaked.

If you're just starting out, try to at least correspond and confirm logistics transactions via email to
keep a record of deliveries and issues.