For Companies Of Every Size, Logistics And Profit Are Intertwined
Insight For companies large and small, new opportunities to expand market reach nationally and globally have really brought the importance of logistics to the forefront.
Businesses are increasingly recognizing they need a stable and efficient supply chain to compete, and this requires a comprehensive logistics strategy.
“Logistics is very high profile now,” says Ryan Persad, Director of Logistics at Purolator. “One of the things that has changed in recent years is that where logistics was once seen as a cost centre, now it is seen as a revenue-generating division. Getting the product to the store or the consumer faster and more affordably is now understood to directly drive profit. It’s a different perspective.”
At larger, more established companies, this revenue-driving perspective often means a robust internal logistics department interfacing with external providers. But, businesses of all sizes are seeing the advantage of outsourcing much or all of this work to the experts. That’s when the appeal of an all-in-one logistics solution really becomes apparent. “Once they have one company providing warehousing, distribution, and transportation — they can really focus on their own business,” says Persad.
As business services of all types become more modular, companies are asking themselves the hard questions about what exactly falls within their core business. Businesses switching from an ad hoc supply chain, making use of multiple companies, to an integrated all-in-one solution are gaining expertise and creating new avenues of efficiency and cost savings that wouldn’t have been otherwise accessible. A unified logistics solution optimizes itself, growing with you as your needs expand.
Efficiency, scalability, flexibility, and accountability
From a customer-facing perspective, integrating these logistics services under a single supplier provides ownership and accountability throughout the supply chain. “When you have a single source provider, the warehouse is driven to ensure that the product gets not just packaged and handed off to the driver, but also that it arrives undamaged and on-time,”
By leveraging a 5,000 square foot warehouse facility in Vancouver, directly linked with their existing freight and distribution, [FAB] were able to seamlessly expand into Western Canada — easily growing into a 10,000 square foot space as their market share grew.
Companies are also discovering the flexibility and scalability that comes with using all-in-one providers. By tapping into a pre-existing nationwide logistics network, they are able to operate in new markets with the same efficiency as if they had been there all along. When Freemark Apparel Brands (FAB), the Montréal-based company known for their Bench and Esprit fashion brands, was looking to expand into new markets, they decided on an all-in-one logistics solution. By leveraging a 5,000 square foot warehouse facility in Vancouver, directly linked with their existing freight and distribution, they were able to seamlessly expand into Western Canada — easily growing into a 10,000 square foot space as their market share grew. FAB estimates this single decision increased annual profits by more than $250,000.
In today’s marketplace, nationwide logistics strategies create a strong competitive advantage for businesses of every size. An end-to-end solution can create efficiencies, ensuring products flow in the right direction at the right time, as well as ensure a company has the ability to respond rapidly to changing market conditions.
At its best, a logistics network acts as a nearly invisible lubricant that keeps business running smoothly and maximizes revenue with minimal intervention. Why reinvent the wheel one spoke at a time when there are all-in-one logistics providers with proven nationwide networks already in place?