Third party logistics (3PL) can be a challenging marketplace for SMEs, but there are advantages that these companies can offer in order to compete with larger organisations and satisfy customer expectations over the coming year.
SMEs, for example, will often understand their customers better than their larger competitors, meaning that they can be more realistic when it comes to pricing. This strategy can benefit a multitude of different companies, from used pallet racking experts to businesses with a sole focus on pallet moving.
A smaller 3PL provider is also more likely to collaborate closely with clients – an important strategy that is often key to successful contracts. The fact that individual contracts can mean proportionately more to SMEs means there is often a greater motivation to form close partnerships compared to larger organisations.
Find your niche
Bigger 3PL operators can also fail to provide the type of value-added, client-driven services required by companies or individual clients, or to fulfil the requirements of niche markets. These are areas of potential success for SMEs, whether they choose to concentrate on www.rackzone.ie supply or breaking down cartons.
Another important strategy revolves around the ability to offer agility and a swift response. All businesses, from pallet racking specialists to logistical experts, can benefit from offering responsiveness and flexibility, to meet the changing requirements of clients.
SMEs should also consider becoming part of a pallet network that best meets the requirements of their individual business. This can help companies to grow and thrive and ensure that customers receive the standards of service they demand.
Funding decisions
An ICM survey, which involved 5,000 British SMEs, found that almost a quarter (21 percent) of businesses operating in the transport industry would consider seeking business investment from friends, family and acquaintances, and almost half (41 percent) would ask the same people for financial guidance.
This indicates a willingness within the sector for businesses to consider all financial possibilities and sources of guidance, but the Federation of Small Businesses claims that accessing the best financial products for individual companies is key to success. Find more information about the FSB at http://www.fsb.org.uk/.
Another strategy is for entrepreneurs to buy into a franchise, allowing a degree of autonomy with the added benefits of being part of a larger, successful organisation. These benefits can include everything from operational support to training.