Singapore is a prominent commercial hub of the world. It has many prosperous businesses which owe their success to quality products, infrastructure support and state-of-the-art logistics. Logistics provides a business with an all in one solution – it includes warehousing, assembly, storage, transportation and distribution. Whatever is the product and whatever is the scale of the company, smooth running operations are a must. They help to improve customer relations, save costs and increase the profitability.
Many companies consider third party logistics as a good option. The purpose of having an effective logistics system in place is to make your products reach out to as many people as possible. This improves the visibility of your product, leading to higher sales and increased profitability.
Logistics provided by a third party also help because they allow you to use the resources that the third party has at its disposal. They have gained experience and knowledge and the kind of resources and networks they have formed over the years is not something that a small business can easily achieve. An in-house supply chain may become cumbersome and a drain on profit.
When you choose a logistics partner, check their reputation and get references. Make sure they operate under a legal license and have a good fleet of trailers and trucks. Choose a company which has a fair charging policy and a cooperative staff. Explain your business goals to them and develop a strategy with them. This will allow the company as well as you to know what to expect and what changes you will notice. The third party logistics market is very competitive and you will face no problem in finding a reasonable logistics service provider in Singapore.
Using effective logistics helps you get new customers in new markets. You can find about your target customer group and present your products to them in a good light. The current market scenario has become such that everything is dictated by the customers. Customers have become demanding and want the best of services. In combination with a stiff competition from similar products, your customers are likely to shift their loyalties if your product does not reach them. Thus, the distribution network has a major role to play. Thus, minimizing lead times is very crucial for a business.
As the business expands across various geographies, supply chain management becomes increasingly tough. A good logistics service will allow you to optimize distribution costs across many transportation modes. Good logistics will also drastically reduce inventory costs and make inventory management easier. This is because through an optimized distribution system you can ensure that the cargo requires a short duration of storage before being dispatched.
Through logistics, you can not only reach out to your customers, but also integrate suppliers, manufacturers and other trading partners. This is because as a retailer, you will be able to supply only when you have the stock coming in on time, and this requires the logistics to be effective even at the supplier’s end. Business operations become more economical as lifecycle costs are reduced. This happens due to automation and linking of order placement and delivery, execution and distribution.