5 Tips for Logistics and Distribution company
Here we tell you everything you need to know to be a successful entrepreneur in the business of product distribution.
A customer, when buying a product, perhaps is not aware of the number of processes through which such a purchase has passed until it finally reaches their hands.
That is why it is essential to have an idea of all the phases it goes through, since depending on the complexity of the logistics process of the company and the distribution, it will be reflected in the final price.
So the logistics of distribution is responsible for getting the final products or services to the consumer. Through this process, the final customer is able to obtain the product they want in the place, form, time and quantity desired.
Therefore, a simple definition of distribution logistics would be a process that all products and services follow, from the start of production or manufacture until they reach the customer’s hands to be consumed. So, why set up a logistics and distribution company ?
Currently, companies whether large, medium or small, have the way to outsource their services or processes; that is to say; they pay other companies to perform certain tasks. So one of the most outsourced processes is the distribution. An example is Coca Cola that produces soda but delegates to third parties the task of distributing this product.
For all the above it is concluded that a distribution business is a good idea, but there are certain tips to follow to create this type of company
1. Do not be afraid to start from below
Many of the big successful companies that today distribute merchandise started with just one person as a messenger on a bicycle or motorcycle. We have the case of Mejía family history, native of Quillabamba (Cusco), who in the beginning prepared ice cream as desserts at home, but then saw that it could become a good opportunity to earn money.
Thus Artika ice cream was born , starting to produce handmade ice cream that sold in small quantities in the streets and little by little a space was made in Arequipa, at the beginning of the 90’s with the delivery of ice cream in wheelbarrows until they arrived in Lima in 1997 .
2. Cost reduction
To reduce costs, the most economical fuel in the country, which is NGV, vehicular natural gas, should be used in vehicles; cheaper than gasoline. If bikes are used for the distribution of products, we must remember that there are specialized bikes for these activities that provide fuel savings and support the excessive use that this type of business requires.
3. Work with entrepreneurs
Entrepreneurs who are starting out have a small budget and find it difficult to hire large merchandise delivery companies. So they can choose the new venture as a distributor, if they are offered more competitive prices. For example, you can start as a home breakfast distributor.
4. Create a web page with the services
The medium and small businesses are constantly searching for logistics and distribution companies that offer excellent services at good prices; A website is a good way to get known and get good contracts.
5. Offer complete services or value-added services
Not to say that it is simply distributed, but that the company is responsible for collecting at the door of the house or the company, in addition to packaging, to label products; In addition to specializing in fragile products, delivery is offered against the clock, which guarantees delivery in less than 12 or 24 hours.