How Can the ”Forgotten Middle” Survive the Logistics Crunch
Mid-market companies are businesses that fall somewhere between large enterprises and small startups. With annual revenues between $50 million to $2 billion, they are sometimes referred to as “the forgotten middle” in the logistics landscape. They’re too large to fail horribly in a struggling market and not large enough to easily navigate their problems without the feeling of being just out of success’ reach.
As mid-market companies employ more people than large enterprises or startups and typically manufacture products people use in their everyday lives, they are an extremely important part of the economic landscape.
While mid-market companies may have different brand recognition or resources than some of their larger counterparts, they can experience unique supply chain advantages with the right help.
Let’s take a closer look at some of the most recent mid-market supply chain struggles and how the right logistics team can help your business succeed.
What’s the Middle-Market Logistics Struggle?
In recent years, mid-market companies have experienced many logistical struggles due to increased competition and technological advancements. With larger competitors often possessing more financial resources and access to better technology, they can outpace their smaller counterparts in terms of product development, supply chain effectiveness, and customer service.
One of the biggest issues mid-market businesses face on their supply chains is the combination of increased consumer demand and a strained labor market hindering brand employee growth.
Limited personnel and resources have resulted in many companies forcing themselves to get creative to stay competitive, but this isn’t a sustainable practice.
Eventually, cut corners will lead to longer customer shipping times, mispackaged goods, damaged items on the supply chain, and other issues that taint a company’s reputation.
How can the Middle-Market Tweak its Logistics Strategy?
The market is always in full swing, and consumer needs are always in flux. Your mid-market company should be ebbing with the flow of current trends, not fighting to tread water. Here are some ways you can rise above and tweak your logistics strategy for increased customer satisfaction.
Reduce Your Shipping Costs
Shipping costs can have a significant impact on the bottom line, and reducing them can help improve profitability. Teams can reduce shipping costs by looking for better deals from carriers, utilizing technology to optimize delivery routes, and streamlining processes such as order fulfillment.
Additionally, teams should look into ways to reduce packaging materials and use alternative forms of transportation when possible.
Get Your Warehousing Under Control
From overpaying for overcrowded warehouse space to just not having an effectively organized storage plan, it’s easy for your overall warehouse situation to lead to the downfall of your supply chain’s success.
Implementing advanced warehouse management systems and taking the time to look into more affordable warehousing solutions are always things a mid-market company should do to ensure their warehouse is an asset, not a setback.
Once you can effectively manage the flow of your warehouse, effective supply chain flow is sure to follow.
Minimize the Steps in Your Supply Chain Process
Minimizing the steps in a supply chain can be an effective way to improve overall efficiency and reduce costs. By streamlining processes such as order fulfillment and delivery, businesses can save time and money while still providing quality service to customers and staying competitive in your market.
Look Towards 3PL
If some of these changes may seem monumental in the big picture, that’s because no major change in this economy is simple. A reliable, experienced third-party logistics (3PL) team can bring the experience, technology, and plan you need to make necessary changes that help you get out of the forgotten sector.
Overcome Middle-Market Blues with GFS Logistics
At GFS Logistics, we love working with businesses large and small, and have the experience and tools to ensure your supply chain runs smoothly, regardless of economic bumps in the road.
Our WMS and relationships with national and international shippers can help your middle-market company settle into a smooth logistics process that lets you focus on growth over a constant game of catchup. From warehouse organization to perfecting your picking and packing processes, our logistics team has you covered!
We’re ready to help you. Contact us today to learn more about becoming a member of the GFS family.