Low margins, growth in e-commerce, the tough competition of new competitors, new e-platforms taking over part of your business, increasing customer expectations, lacking behind in technology. Sounds familiar?
Many companies are facing these challenges in today's environment and are unable to respond properly. This is unfortunate, as they typically do have the right products and staff available. In addition, they work day and night to survive in this new, competitive world.
The new competitors entering the market can be both big companies like Amazon or small businesses. They enter with new approaches and it is often be a surprise how they can gain a large market which took years for others to build.
There is no doubt that technology has changed the game of logistics, whether we like it or not. By not acting now, the market will determine your faith. Take charge and determine your own destiny instead by attacking the market as the new players do. Below are four points of action your business should consider in order to stay in the game.
Like many other industries, the logistics industry is facing a digital transformation. Making your logistics digital comes with great benefits compared to traditional logistics. You get optimisation, visibility across your entire supply chain and it enables collaboration between all stakeholders. Digital logistics will also reduce the amount of manual handling, giving you plenty of extra time to spend on other important tasks.
Statistics show that companies can grow revenues between 4 and 8% above their market if they prioritize better customer experience. One of the growing demands of customers out there is fast delivery. To be able to meet your customer's expectations, you need tracking of your shipments. A digital supply chain can provide real-time visibility of all of your goods. With this visibility, you can make data-driven decisions to ensure that your deliveries will be on time and excel in customer experience and expectations.
Traditionally, only a few warehouses around Europe serve the rest of the European market. The consequence is that the goods have to be delivered over a long distance to the customers, often at high transportation costs and/or a long transportation lead time (this is not in line with the new market expectations). In modern distribution, transportation networks serve as a huge European warehouse on wheels. This ensures that your goods can be delivered fast and at the lowest costs to your customers around Europe!
In the traditional way, you will ask your carrier or logistics service provider to offer transportation to your geographical areas. That can still be done. However, there are also new networks available which make this easier for you. By using a European network to deliver your products, you get more cost-efficient deliveries. Consolidation of goods can ensure that the transportation units are fully utilized which gives you a low-cost delivery model.
In these global times, why not use a network to sell your products to a wider geographical area? New market entrants make sure that their products are available in big geographical areas and will eventually start taking over your customer base. Be in front, and use these distribution networks to offer your products in a different and wider geographical area.
But where to start? The first step towards becoming more efficient in order to stay competitive is, as mentioned, is to go digital. Download our white paper to learn more about what you should look for in a cloud logistics solution.