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Increase Your Profit by Improving Business Logistics

Increase Your Profit by Improving Business Logistics
  • Opening Intro -

    A lot of people make a mistake believing that a business that doesn’t require much money to start is always a profitable one.

    This is not necessarily so.


The costs of operations of your business are something you are required to pay constantly, and they can vary based on your industry and, of course, logistics. The less you have to pay on various expenses, the more profit you have. With this in mind, here are a few ways to make more money by making your business cheaper to run.


Outsource When You Must

Like many other things in business, outsourcing can be both cost-effective and inefficient depending on the situation. Sure, in the long run, it is usually better to have an on-spot team, but this would mean investing heavily in developing your own in-house department. Hiring skilled people, additionally training them, making them into a team and providing them with necessary tools are just some of the things that can be avoided if you decide to outsource. Still, the most important thing is the experience. You can’t expect your newly formed team to outperform people with years of experience in that branch. If you are afraid to give such an important task to a company far away, nearshoring is always an option.

Figure Out the Delivery

While you can choose to outsource other tasks, delivery is not one of them. The very situation where a startup handles its own overseas delivery system is unimaginable since even major conglomerates get someone to do this for them. The most important issue here, however, is finding someone reliable and expedient to deal with freight forwarding for you. Sometimes, the main reason why people go with you instead of someone else is because you have a next-day delivery in offer. This major difference can sometimes give you a much-needed competitive edge in the hostile business world.

Social Media Marketing

A lot of people are not quite sure what social media marketing actually is. They believe that it is nothing else, but posting some images and links on social networks. Sure, this type of marketing would indeed be completely inexpensive, but its efficiency wouldn’t be something one could brag about, either. On the other hand, here you get to decide how much you wish to spend, or what you want to put emphasis on. Connecting with people and businesses can be quite inexpensive, while hiring an expert to do an elaborate campaign could prove to be much less frugal.


Automating Your Warehouse

Finally, if you manage to automate your warehouse adequately, you will be able to achieve a far greater level of organization, while relying on less workforce. While some argue that automation is expensive, when compared to the alternative, it can definitely pay off. The best example for this is Amazon which now heavily relies on the use of robots to run their warehouses. Purchasing all these robots wasn’t cheap, but seeing how they never ask for a raise, promotion or a sick day and work even on weekends and holidays, most would agree that it was money well spent. Finally, a lot can be achieved just by finding the right warehouse management system.


One of the greatest delusions of new businesses is that the price is the only thing that determines the profit. In other words, some people believe that if what you sell the product/service for is more than what it costs you to create it, you are making money. However, this would mean overseeing the costs of your business logistics like your warehouse management, delivery and digital marketing. The business world is a hostile environment where only a chosen few can make it.



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Categories: Storage & Shipping

About Author

Dan Radak

Dan Radak is a marketing professional with ten years of experience. He is currently working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies. He is also a coauthor on several technology websites and regular contributor to Technivorz.