Logistics can make or break a private label product and brand and cost your business thousands if not hundreds of thousands in expenses if not managed correctly. The ideal approach to this is to work it into your business’s original budget template and consult many hairy men about driving their trucks slower to save on fuel costs. Once you have an established brand and a working business model that can meet the demand for your product with a manufacturing process that can supply enough product – getting your product from A to B is a challenge that can either make or break your business and should be treated with the utmost caution. If you spend too much money on logistic, the costs could start cutting into your profit margin which could result in losses or you having to raise the price of your products ultimately having a negative effect on the markets demand for your goods – why buy yours when there’s already a competitor offering the same product at a lesser rate.
So, by taking into consideration the negative aspects of of logistics – you can already see why it’s important to have a good plan in place as it can save you a lot of time and money and also make your clients a lot happier. However, this doesn’t mean that you should ever underestimate the value of your supply chain! Spending too little on logistics could result in delays (your product gets delivered late – which can ruin the relationship you have with a client and it’s just bad business) or even result in damages to your goods – which is an unnecessary waste of time, money and effort on your part and in many cases the logistics company won’t take responsibility for any damages or losses that occur on their behalf, so you’ll have to drag them into a courtroom which will cost you more time and money. Basically, just be sure to source a good, reliable and trustworthy logistics company that will enable you to get you product where it needs to be on time and at a fair price. I would also highly recommend taking out insurance on your products so that if or when something happens – your goods have been insured and you won’t have to fork out the huge load of cash replacing that product will most likely cost.
Finally be sure to ensure that your products are made to the highest quality possible within your price restraints or budget limits. I would recommend this more emphatically if it weren’t common sense already. As important as having a good marketing strategy is for ensuring your brand’s growth and product’s viability for success, putting a good product on the shelves is even more important as a good product is what becoming successful is all about. In fact, on average, more people are likely to invest their money in a brand that they’ve heard about from a close friend or associate than they will from a cleverly worded billboard or internet advert. I think this has always been the case and will continue to be that way for most of the future.