How to Start a Supply Chain Business or Logistics Business?
With the help of today’s technology, it is very easy to create a supply chain or logistics business, without even leaving the comfort of your home. SCM business may provide additional income to your monthly budget, but, with a bit of care and dedication, it can turn into a full-scale business that enjoys a great deal of success. If you are interested in starting a logistics business, then do take the time to read the following aspects, as they are crucial details you need to know if you plan on venturing in this particular business sector.
Upcoming Trends in Supply Chain Business Industry
1. The omnichannel method will take over revenue management
There is an obvious battle between online stores and the traditional brick-and-mortar shops, as the later lost a lot of terrain in the favor of online shopping. Thus, most of them adopted the omnichannel method, with the main purpose of attracting more clients and generating better revenue.
2. Automation and shortage of drivers
Many companies hope that autonomous cars will soon be safe enough to be released on the public roads, vehicles that will solve their driver shortage issue and reduce costs. But, since that is not going to happen anytime soon, one of the biggest challenges of logistics companies is to do their best in attracting sufficient drivers. Without them, it is impossible to record the desired level of performances in the field.
3. The tariffs may change significantly
Companies around the world take into consideration the modification of current tariffs, something that will significantly change the existing supply chains. It is not known when it will happen and how, although some companies already started re-designing their supply chain so that they will be ready in case of tariffs change and prices go up.
4. Digital technologies still have a lot of say in this industry
The players in this industry are still very fascinated by the existence and emergence of various technologies, like IoT, autonomous cars, machine learning, and so on, which they regard as the solutions that will make their business more effective and successful. Whether this will happen, we will have to see. Although the fascination for technology continues, many companies trying to see how they can use them to improve their performances.
Fundamental Requirements You Need to Start Your Logistics Business or Supply Chain Business
- You need financial resources for funding your scm business and perform the required investments;
- Begin by obtaining all the permits and licenses you need to have such a business;
- Check out the tax permits in your state, as you will have to cover these as well;
- Do a thorough research of the market first, which includes studying your competition, to see how they are doing and what they may be missing, so you can come up with something fresh;
- Come up with a solid business plan, based on your research. You can start out by self-funding your business, but things may evolve slower this way.
- You can apply for a loan as well, a supply chain business requiring $250,000 to $300,000 to get started until managing to generate the first funds;
- Set up an official office for your company;
- Get an insurance that will have the business covered;
- Hire your first employees in order to start doing business.
7 Personal & Professional Skills That You Must Develop
- Solid analytical and numerical skills;
- A good amount of knowledge in business supply chain management;
- Attention to details;
- The ability to make good decisions, even in high-stress situations;
- Knowing how to be a team player;
- The ability to adapt fast;
- Excellent interpersonal and communication skills.
How to Sustain and Grow Your Logistics Business / SCM Business?
1. Create a clear map of your business’s supply chain
You need to have a clear view of the supply chain, this includes seeing the challenges your business and supplies are facing. Each supplier may face a set of risks and to understand these risks will help you make adequate adjustments to the chain so that problems are avoided. AIMS’ mba supply chain management, diploma in supply chain management, supply chain management courses and logistics courses are great qualifications to develop necessary skills that you need to start a logistics business or supply chain business.
2. Make sure your vision is well communicated
If you have several shareholders in your supply chain business, make sure that each of them knows and understands your vision. You should do the same with your employees and any other person that is part of your business so that everybody will work in the same direction.
3. Establish good connections with other business leaders in this industry
It is very difficult to make it on your own, so creating and maintaining good connections with other, more experienced leaders will give you the chance to find the solutions you need to the problems that may arise.