Published on 10th January 2022
As the logistics market gets increasingly competitive, logistics companies are finding themselves at the crossroads of survival and sustainability. It is no longer enough to survive when the norm is to go beyond the ordinary to sustain long-term growth.
What are the key drivers of global transformation in logistics operations? Changing logistics scenarios, supply chain challenges, truck driver shortage, and tech disruptions, to name a few.
Whether you’re a logistics start-up or an established logistics company, here are eight proven ways to grow your logistics business in 2022:
The logistics landscape has witnessed rapid shifts in recent times. Changes in the logistics industry have had a significant impact on the movement of goods by air, road, rail, and sea.
It’s no longer surprising to use drones and self-driving vehicles to optimize last-mile deliveries and enjoy same-day delivery as a standard delivery option.
Getting your logistics network in place and refining your logistics capabilities are necessary to boost your profitability in your target logistics market. A better awareness of cross-border logistics trends will give you a much-needed competitive advantage.
The logistics ecosystem is not limited to seasoned players but makes room for ambitious ones as well. Increased transportation costs, high customer expectations, and volatile market conditions are transforming the logistics processes.
As a logistics business owner, it is essential to track competitor activities to stay a step ahead in the logistics space. You can do this independently or outsource the work to a trusted market research company.
Performing competitor analyses and understanding their social media interactions can guide you in improvising your business strategy. Don’t want to get left behind? Study competitor behavior routinely for deeper insights into market positioning, customer communication, and engagement.
Traditionally, logistics businesses have relied on business cards, cold calling, word-of-mouth promotion, print and so on to gain clients. A solid online presence is an advantage you can’t ignore in the digital economy. It is what brings you closer to your customers.
A well-crafted digital marketing strategy isn’t an option anymore.
No matter the business size or nature of operations, i.e., local/international, your website is the first immersive touch point for your target customers. Imagine turning a potential customer away in a single click. Not good, right?
Look online for logistics website ideas and choose the one that works for you. Widen your reach with a user- and SEO-friendly website. Even if your customers are on the go, a mobile-responsive website with interactive content can connect them with you, instantly.
Attracting active consumers is the first step to converting opportunities into sales.
Customized email marketing and pay-per-click (PPC) advertising can earn you well-paying clients. You can use various advertising options such as Google Ads to set up ads and bid on relevant keywords to promote your offerings.
Logistics is not only the storage and delivery of cargo, merchandise, and supplies but also the gateway to customer happiness. Loyal customers build the foundation of stable growth. While gaining new customers is crucial to a logistics provider, retaining existing customers is equally important.
A research study shows that “20% of your existing customers will likely drive 80% of our future profits.” DHL, a leading mail and logistics company, is known for providing exceptional customer experiences across the world.
Do you want to make customers come back to you? Take a look at the after-sales opportunity.
Find your target customers and help them trust you. Be it long or short, your customer journey holds a lot of promise for your logistics business. Do your best as a customer-centric company, and your business will flourish because company success is directly proportional to customer satisfaction.
Make yours a forward-looking logistics company. Innovate when you need to and inculcate values where you have to. Your customers will appreciate your professional logistics service as much as the personal touch that comes with it. A happy customer means a healthy business.
At the heart of the logistics sector is a collective endeavor. We love to collaborate with and learn from others. Conventional networking events such as trade shows continue to provide viable opportunities to grow your logistics business.
Social media platforms and online meet-ups also offer better flexibility in leveraging in-demand talent and collaborative partnerships.
Online social networking events can establish your credibility as a unique brand and connect you with industry partners, logistics experts, potential clients, and future employees, too!
For example, LinkedIn is highly popular with supply chain and logistics executive professionals who get a host of opportunities to demonstrate their expertise and network with peers, thought leaders, and other skilled individuals.
LinkedIn communities can help you go further with strategic tips and real-time conversations on everything you need to shine in the logistics industry.
Research studies show that organizations that ride out economic downturns demonstrate fast decision-making and financial flexibility. Such resilient organizations don’t shy away from investing more in logistics innovations, value-chain expansion, and workforce management.
A well-prepared organization sustains operational effectiveness to reduce balance-sheet debt. Unwavering focus on value and cost supports an organization’s core goals of maintaining profit margins while cultivating customer relationships.
A value chain analysis assesses inter-related primary and secondary value chain activities for a logistics company, including inbound logistics, outbound logistics, firm infrastructure, procurement, and technology to create strong connections with customers.
Successful outperformers adopt a through-cycle approach to growth that encompasses critical components such as asset intensity, cost-cutting, long-term thinking, and stressful scenarios.
Responding quickly to growing demand and shifting customer expectations makes a difference in long-term survival. Unlock profitability with a resilient value chain.
How well a logistics company takes advantage of geographic expansion goes a long way in achieving scale in a highly competitive industry.
The logistics sector essentially deals with an inherently unpredictable business cycle, continuously evolving customer expectations, and ever-increasing competition between start-ups and legacy players.
Why should you pursue new markets? Unexplored markets represent unused opportunities. However, stepping into an unfamiliar territory demands a detailed market analysis, a winning market entry strategy, and a lot of fresh thinking.
If you want to retain a competitive edge, boost your existing competencies, increase cost savings, and expand your operational networks.
Exploring a distant market requires a thorough understanding of significant criteria such as customer profiles, local demands, and logistics policies. In addition, flexible and connected logistics processes can save you time, money, and resources.
Do you want to conquer an emerging market? Use the window of opportunity to discover the market, make performance improvements to differentiate yourself from the competition, and introduce innovative service offerings to reinforce your expertise.
When a logistics company revisits its business model, it opens up new growth opportunities in the face of external uncertainty. Any slowdown arising from economic, political, or epidemiological uncertainties can stall the progress of your logistics firm.
Logistics industry experts are seeing a surge in global mergers and acquisitions (M&A) activity among logistics players. Strategic partnerships are becoming popular for a variety of reasons.
There are many benefits of a robust M&A strategy—from competitive rates and extensive services to cost savings and wider geographic coverage.
Small and large deals are encouraging companies to enhance existing capabilities and expand local/international presence. For example, a programmatic approach to M&A with several deals per year leads to increased market capitalization.
As a niche player in the highly dynamic transportation and logistics (T&L) industry, your company can benefit from a well-coordinated M&A program. Proactive deal sourcing and careful deal evaluation are crucial for a collaboration that maximizes synergy value and minimizes operational discrepancies.
A sound logistics strategy can help a logistics business increase operational efficiency and maintain a reliable cash flow. Providing timely customer service and attaining fulfillment targets require a logistics business to be more agile and consistent in logistics planning—from customer demand to order fulfillment.
Some of the major logistics challenges include inbound logistics management, warehousing development, and sales process automation. Globally, freight management is a considerable challenge for freight companies, including ocean freight companies and rail freight companies.
How can logistics and transportation companies become future-ready? A business that embraces technology excels in a fast-changing world.
For example, while a custom warehouse management system boosts productivity and optimizes inventory management, freight forwarding software can efficiently manage operations for a freight forwarder.
Logistics and transportation businesses are interdependent for successful supply chain management. The collaboration between a logistics partner and a transportation partner is an asset that drives value in the supply chain ecosystem.
When supply chain partners work together, they leverage combined expertise and succeed in building sustainable supply chains.
As you explore these business growth strategies, it’s always good to have the most comprehensive lead generation platform along the way.
If you’re a logistics company looking to stay ahead of the curve, contact us for detailed competitor analysis, potential leads, custom research and much more. You can rely on us for actionable and data-driven intelligence to power your business.
Many logistics companies have had to rethink their business strategies to survive and thrive in the rapidly evolving logistics market. If you want to scale your business, it’s time to adapt and innovate more than ever to keep up the momentum.
In the words of Dave Waters, “Without logistics, the world stops.” Are you ready to grow your logistics business footprint in 2022?
