We’ve talked about setting up a business in your garage before. We’ve offered tips on how to make sure the premises is fit for the job. However, a business doesn’t just stay in its premises.
If you’re producing goods, you need to make sure it gets to the customer.
You also need to make sure you have a streamlined system of materials and supplies for your tools. Logistics is a key to any business dealing in material goods.
Get to know your suppliers
As a business grows, so does its reliance on its suppliers. If you’re bringing in materials for your products regularly, then you should be looking to get a better relationship with those suppliers. Particularly when it comes to choosing domestic or overseas suppliers. Whether you want better service and better quality or cost effectiveness is up to you.
Ensure that time is of the essence
If you have a fleet or even one vehicle, you use to make deliveries, you need to make sure that those deliveries are made as timely as possible. Not only to satisfy your customers, but to keep the supply chain running smoothly so you’re not wasting time holding onto products you shouldn’t. One of the best ways to track your vehicles is to use GPS tracking on them. That gives you a look at the real data of where they’ve been and how long they’ve taken to get there. Meaning you can address any problems as soon as the journey is completed and improve the routes and drivers.
Taking care of the fleet
You have to treat the vehicles of your business like they’re one of the most important pieces of equipment. Having the same approach to them as the average car owner isn’t enough. Maintenance and improvements should be a part of your work duties. As should making sure that you’re able to source equipment for repairs quickly and effectively. Don’t keep relying on your local mechanic for sourcing goods. Your demand for them is larger than the average consumer, so your supplier should be larger as well. Instead, consider going to the businesses that supply parts like air con hose fittings to the automotive industry itself.
Keep the accounting clean
When you’re dealing with employees that spend a lot of time away from the business, you need to make sure they’re financially equipped to deal with things like refuelling and paid lunches. However, getting them to use a separate bank account or reimbursing them is not time effective. It only adds more accounting work to your plate. Instead, consider using things like fuel cards so you can pay for their fuel without adding a whole other level of busywork to your finances.
Teach better driving
If you want them to be cost effective, you need to talk with them about driving habits, as well. Besides training them in fuel efficient training, take the time to plan commonly used routes with them. The more they can use alternative routes to avoid congestion, the less time wasted and fuel used on each journey.
With the right approach to logistics, you’re going to have a business that works better for you and your customers. Make sure you’re taking the time to look over every inch of how you get things from A to B.
Image Credit: Photo by Alvimann