5 Common Logistics Mistakes to Avoid for Small Businesses

Are you happy with your company’s logistics and warehouse management system? If not, it might be time for an upgrade.

Small businesses depend on logistics services for managing inventory, shipping, storage, and packaging. However, there have been many improvements in logistics technology in recent years, so it may be time to reconsider your provider.

If you’re assessing your logistics needs or looking to upgrade, keep reading to find five common logistics mistakes you want to be sure to avoid.

  1. Stocking the Wrong Amount of Inventory

Getting your inventory right is tricky. Having excess stock means your cost of storage skyrockets, but too little stock and your customers are left waiting for backorders.

It takes some trial and error, but try to manage your inventory levels smoothly to keep costs down when it comes to storage.

  1. Overpaying

Logistic prices can vary greatly. Can you be sure that your small business isn’t overpaying?

It’s smart to shop around when it comes to logistics prices, and if you find a better deal elsewhere, switch providers.

Logistics is a competitive industry, so you’re sure to find a more affordable option that will do a great job.

  1. No Ability to Scale Up (or Scale Down)

What happens when your business experiences a growth spurt? You need to make sure your warehouse has space and capacity for you to expand.

Or, if the business takes a turn for the worse, are you able to easily downsize? Locking your company into an inflexible contract is a big mistake, so make sure you have options.

  1. Outdated Technology

Logistics technology is rapidly changing, giving companies the availability to manage and view stock in real-time. Plus, you should be able to control your inventory, shipping, and invoices via an app.

If you’re needing to process and manage your inventory manually, you need to upgrade and automate your logistics.

  1. Poor Product Packaging

Packaging matters more than you might think—it should keep your product safe, but also appeal to your demographic, look chic, and ideally be eco-friendly.

If your logistics company is letting you down in terms of appearance when it comes to shipping and packaging, this can have a negative impact on your business.

Your packages should always arrive beautifully-presented at your customer’s door. Otherwise, they may be disappointed and may not come back as a return customer.

Avoid These Logistics Mistakes to Run Your Business Successfully

You know how important shipping is to your small business, so save your company time and money by avoiding these common logistics mistakes.

It may take some time to find the right logistics company for your needs, but once you’re happy with them, your company will be on track to having more happy customers, higher sales, and efficient shipping and inventor storage.

Was this helpful? If so, please browse some of our additional content for more useful tips.