The market for logistics service providers is one of the fastest growing and most competitive markets in the world. To get ahead of competition - or keep up with it at all - it is important that you know how to stand out from the other players in the market. We have listed three tips for you, based on 3PL Central's experience.
Location
The physical location of your business can be decisive for your business. In an ideal world, you would find a great location in an emerging region or an existing logistics hotspot, but you may not always have the resources to do so. When looking for the right location, it is important to focus on locations with the following characteristics:
- near a major port, railway and/or highway. Having these facilities will save you time, effort and money;
- in a region where enough workers are available. After all, without suitable staff, you have no use for a good location;
- near a large number of end customers. If you are located near the end users, customers will be more likely to choose your services. After all, it makes a huge difference in transport costs. An example: a logistics service provider that chooses to locate an auto parts warehouse in Detroit, a city with many auto parts manufacturers. A location like this would immediately give the company an edge.
Also read: 5 tips to keep logistics employees happy
Niche
Logistics service providers that offer expertise in a particular area are, not infrequently, highly successful. There are many industries in which there is a great need for service providers who specialise in this niche. Think of e-commerce, cold storage and handling hazardous materials. Logistics service providers focusing on e-commerce are said to have grown 300% faster than traditional players in recent years. When choosing a niche, pay attention to the following points:
- profitability. Fast-growing industries sometimes seem attractive, but they are not always profitable. Be assured that the effort you put into this niche will pay off;
- sustainability. Is it a short-term trend or are we going to have to deal with this industry a lot in this future?
- diversity. Are there already many players in this industry or is the market dominated by one or two companies? Check carefully how saturated the market already is before plunging into this niche.
Service to customers
Customer service is probably already part of your operations. Yet there is always room for improvement in this area. What if you offered customers just that little bit extra? Shift the focus from 'keeping customers happy' to 'surprising customers'. That way, you will ensure long-term cooperation. How can you achieve this?
- attract employees with a strong focus on service. Starbucks is a good example of this. The chain pays more attention to customer focus than candidate experience when hiring;
- attract workers from different industries. These employees not only offer a different perspective on certain topics; you can more often offer clients someone who already knows about the industry. For these clients, this is often reassuring;
- keep employees for a long time. Your staff are your calling card to customers. The longer your staff stay with you, the more likely your customers are to do the same.
Editorial LogistiekProfs
