| Starting Up In Logistics? This Can Help

Posted in Start-up Ventures at 9:00 AM by Loftis Consulting

Logistics is a great business to get involved with because companies always need to be transferring items from one place to another. Goods need to be moved. Whether over land, sea, or air. Your business will be hard to set up, there is so much you need to think about in logistics, however, if you nail it and get it right you’ll be making money hand over first. You may have already considered some of these tips, which is great! But check out the others and see if they can stoke your ideas. You may even think of something you had previously not considered. Good luck!

 The first thing you need to think about is your base of operations. This is the place from where items come in, get moved around and packed back up before going out again. This place needs to be pretty big; it also needs to have the right machinery. Items like a 3 ton overhead crane, forklift trucks, roll pallets. All of these warehouse style types of machinery need to be used because of the extensive amount of items you have coming through. This gets worse with the more variety you use. You’ll need fridges for food and separation techniques when holding certain items like gas, fireworks etc. The more you take the more money you will get. Just be wary of the amount of space you have in your warehouse. Certain things will need to be segregated.

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 On the same note it could be worth investing in a bespoke inventory management system. It can stop silly mistakes happening and save you money by limiting on items going missing in paperwork which can sometimes happen with under delivery and the like. Paper based systems are redundant in this day and age. Go for an automated system and watch your profits stay consistent.

Now you have your base setup you need trucks. These cost a lot of money, especially now you need to ensure they comply with environmental standards in terms of emissions. As such, settle on a low number at first. When your business expands you can increase the number at your disposal. There should be clear loading bays and easy ways to add the items into the trucks. Again, you may need to invest in truck cooling systems if ferrying food around. At this point you need to work out your limits. If in America, are going to cover the whole USA? In Europe? How far out are you going to go? Again, start out small and get bigger as you expand. Your drivers need to be comfortable in travelling long distance, so ensure they have the right training to do so.

You may need to partner up with other companies that use shipping and cargo flights, as you won’t be that far yet. As such, you need to include all of this in your price plan. Never operate at a loss otherwise your business will be gone before you know it. Try to just use your trucks when you can, only outsource to shipping firms when you really need to.

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