Encompassing freight forwarding, haulage, and product management, distribution companies make up the middle man between manufacturer and customer, and are an essential component in any marketplace. This means that they form some of the world’s most respected and revered companies that span continents and employ thousands of people, and with the growth in e-commerce set to continue, now is the perfect time to make a name for yourself in the industry.
How can road haulage and distribution companies help your business?
To a large degree, the expanse of your business is decided by the reach of your network. By physically moving stock to where it needs to be, distribution companies play a crucial part in expanding a retail market, but in order for them to do that, they need to work with a network of strong retailers. As a distribution company’s network grows, the more manufacturers and retailers will want to work with it.
Optimisation is often the reason why a company is able to offer freight forwarding and haulage at a cheaper price, and with the highly competitive prices driving e-commerce, keeping these services at the lowest possible cost is not only the key to success, but a fundamental element of maintaining a distribution company. By optimising all areas of the business, a company is able to keep costs to the absolute minimum, meaning they’ll be in a better position to win retailers’ contracts.
Finding new manufacturers to work with is a key role for distribution managers. And it’s important to evaluate whether or not the nature of your logistics company is suitable for selected suppliers. It’s also worth considering if your freight-forwarding departments can handle more orders. A distribution company will need to adapt to a manufacturer’s or retailer’s requirements in order to achieve a contract. Each manufacturer will have different road haulage and product management needs, so a forward thinking distribution company will have the details in mind before pitching to new manufacturers. It could be that a few adaptations need to be made, such as refrigerated vehicles. However, if the two companies are too difficult to slot together, and huge changes would have to be made to the entire haulage practice, a distribution company could decide it’s simply not a good fit.
Success comes not with the more options logistics companies have, but in examining and pursuing what is best for them. With so many transportation and warehousing choices to make, this is not an easy task. One of the big questions is centralisation or regionalisation. Having warehouses spread across the country means shorter lead times, particularly to far flung places, but will this balance out the costs of setting up and running the warehouses? Transportation options are numerous, and the correct one is often the one which matches your business needs.
Distribution companies continue to form that bridge between manufacturer and customer, and their necessity is unlikely to diminish any time soon. They literally keep the business world moving, and the most successful ones have optimised their business along the lines above.
If you would like a free quote for road haulage and distribution for your business, contact DMG Freight Services on 01279 452468