Logistics start-ups are proving great business opportunities at the moment – it is an industry that has seen immense change.
Customer expectations have changed and the technology to support these new expectations means there are some fantastic future business opportunities in logistics. However, there have been those who have invested and lost because of some basic errors. Some of these common mistakes are listed and discussed below, providing you with the opportunity to sidestep what have proven to be costly errors made by logistics and transport start-ups.
Recruiting the wrong delivery drivers
The driver job is the pivotal position and yet it is where many a logistics and transport start-up fails to make the right recruitment decisions. The true face of your business is the person who delivers the product to the buyer. Spending on infrastructure, machinery, warehouse space and hardware and then having substandard or poorly trained drivers will prove to be a fatal error in judgment.
Whether you recruit as a business or use a professional recruitment firm, spending some time and money on hiring the right drivers and delivery people for your logistics and transport business will go a long way to ensuring your success. Alternatively, you can make use of professional jobs boards to post delivery driver jobs which is an option that many have used to ensure that their drivers meet the standards they need. Furthermore, this outsourcing of delivery driver jobs ensures that you will always have a professional driver for the loads that you have available.
The driver is probably the most critical cog in the entire logistics process, and as such, if in doubt use a n intermediary to find you the best drivers out there.
Wrong apps and e-tracking systems
The logistics and transport sector are currently dominated by real-time tracking and booking apps. This technology has become the means through which a number of suppliers find and link with drivers and logistics firms. Furthermore, the entire supply chain may use the same apps to track consignments. Using the wrong apps and forms of tracking that your customers aren’t able to easily use and interact with, is a major failing of logistics and transport start-ups. Before you embark on any technological improvements in logistics and purchase any software or hardware, or have a great app designed, ensure that you do a full market analysis and discover the apps and software currently being used by others in the profession.
Having the incorrect insurance and licenses to operate
Accidents happen and whether it’s in international shipping or localized transport, there will be instanceswhen parcels and packages or entire consignments are lost, damaged or destroyed. The companies that haven’t done their risk assessment and secured the correct insurance for such occurrences are the ones who suffer. The insurance process will also require you to relook at your delivery driver jobs and ensure that if any subcontractors drive for your business, they too have the right industry and geographic-specific insurance and licenses.
In a time like this, when transport is booming and logistics is proving to be a winning option for many investors and start-up businesspeople, it is critical not to rush in without clearly planning and preparing. This article has provided three of the possible pitfalls to avoid.