As you try to grow a home business and turn it into a fully-fledged company, there are so many challenges you need to face. You have to think about all of the big picture stuff like designing new products and deciding on the future direction of the business.
But you also need to handle the practical stuff too, like logistics. If you can’t get your products from A to B or even manufacture them in the first place, you don’t have a business. When you’re working on a small scale, shipping and logistics are fairly simple, but as the business grows, it becomes more complicated. These are some of the big logistics challenges you must face as your business grows outside the home.
Image From Pixabay CCO License
Contracts With Suppliers
You may have to start buying in bulk if you want to manufacture your products at scale, but that means finding suppliers who can handle that kind of volume. It also means negotiating strong contracts with them which stipulate that they will meet agreed-upon deadlines and deal with problems like damaged goods swiftly.
As your needs increase, the contracts become more complicated and that means the potential for legal challenges is much higher too. It may be worth consulting with a lawyer so you can wrap your head around any contracts with suppliers and manufacturers. If you don’t fully understand what you are signing, you may end up paying over the odds for a sub-par service.
Controlling Your Shipping Costs
If you have a small business, your logistics are probably pretty straightforward. You can use an established courier service and pay a monthly fee which gives you a set number of deliveries with a fixed shipping cost per item. As the company grows, it becomes more difficult to predict shipping costs for each product, especially if you start shipping overseas.
In this case, you need to look around for the best deals from different couriers and negotiate strong terms with them as well as get quotes for air freight if necessary. Check as many freight shipping quotes for SMB as you can, and don’t be afraid to move to a new service if you can find a better deal. The best companies will be able to give flat-rate shipping on certain products so that your margins are protected even if something goes wrong with production or storage.
Sustainability
As more products are manufactured, you have to make sure environmental concerns are on the agenda. Most consumers around the world say that sustainable packaging is important when they purchase new products. It’s not just about which supplier offers the cheapest option, it’s also about making smarter decisions on things like recyclable plastics and sustainable packaging design.
Sustainability isn’t something that only your customers will care about either. As a business owner, you also need to consider your carbon footprint and do everything in your power to reduce it wherever possible. You may even want to hire an outside agency so you can get big-picture advice on how to reduce emissions without compromising on growth or profit margins too much.
If you want your business to successfully expand outside the home, you need to face these big logistics challenges head-on.