Month: February 2019

3 Ways to Improve Your Product Distribution Channels

Product Distribution Warehouse

Getting your products into the hands of your customers as quickly and inexpensively as possible is the key to your business success.

No matter how great or unique your product, if it can’t reliably get to your customers with little trouble on their end, you won’t have repeat business. As a business owner, you’re constantly figuring out the best, most efficient ways to move items from manufacturing to consumer without spending a ton of money.

To more effectively get products to the people who have paid for them, you must evaluate your product distribution channels. This term refers to the way that products move from manufacturer to distributors and on to customers, and it’s the backbone of your business operation.

Here are 3 ways to make your product distribution channels more efficient and less expensive:

 

Consider Strategic Warehousing

Part of the key to getting products into your customers’ hands as quickly as you can lies in the proximity of your warehouses to your customers.

If your customers are across the country from your warehouses, it’s going to take longer for those products to be delivered. However, a warehouse located in the same region as your customer base improves response and shipping time, making for happier customers.

Take a careful look at where your customers live. If they’re all located in one general area of the country or world, explore warehousing options in that area if it’s feasible.

For larger, more widespread customer bases (as most businesses have), regional warehouses may be the answer. Think of Amazon, which has distribution centers spread all across the map, improving their efficiency in getting products to consumers.

This more regional approach to warehousing may end up saving you money, too, as it may cost less to store and distribute half the amount of products from two different locations as it does to store your full inventory in one warehouse.

 

Identify the Proper Channels

Just because you’ve been operating your business with one model of distribution for a while doesn’t mean it’s the most effective way to do things now.

Take some time to evaluate your distribution model.

If you distribute directly to customers, is it the most effective, efficient, and inexpensive way to work things, or would you be better off finding a retailer to handle this task for you? For businesses that use retailers, would you be better served shipping items directly from your warehouse to the consumers?

Even if your research determines that the way you’re currently operating is the most efficient way, at least you know that you’re doing what’s best for your business and you aren’t just trusting the current method because “It’s the way we’ve always done things.”

 

Constant Monitoring & Measuring

What does improved efficiency and cost-effectiveness look like for your business? Is it getting items to customers one day faster? Or is it saving 5% on shipping costs from what you’re now spending?

Whatever you determine to be increased success in your business, define it and put a number to the improvement. Don’t just say, “We want to get our products to customers faster” without defining how much faster they should get there.

Once you’ve got these metrics in place, track whatever you need to track – total time from order to delivery, cost per package of shipping, etc. – and compare the data.

If your processes aren’t improving, look at the data to find out why.

Are you using a shipping company that’s more expensive than one that may do the same job but not be as well-known? Could you spend a little more for shipping to guarantee that packages make it to the consumers more quickly?

Use the data you’ve collected and figure out where you can refine your product distribution channels. This may mean making some hard decisions, such as trading off a little more profit overall to pay for faster shipping, but improved customer satisfaction will lead to more business, and the extra expense likely will even out in the end.

 

Customizable Logistics on the East Coast

Why trust some fly-by-night logistics company to get your products to your customers on time and within budget? For more than 30 years, Cannon Hill Logistics has worked with businesses of all sizes to design individualized logistics and shipping solutions to meet their individual needs.

Whether you just need someone to store your overflow stock or you want help with the entirety of the customer ordering process, we’ve got the knowledge and staffing necessary to help your business succeed. Contact us today to see how Cannon Hill Logistics can partner with you to fuel continued business growth!

Last-Mile Delivery: What Is It, & How Does It Impact Your Business?

Last-Mile Delivery: What Is It, & How Does It Impact Your Business?

Have you ever ordered an item and, when checking up on tracking, noticed it’s been listed as “Out for Delivery” for what seems like forever?

Without even realizing it, you’ve been part of the struggles that many businesses face when it comes to “last-mile delivery.”

What Is Last-Mile Delivery?

Last-mile delivery is the term for getting a product from the final storage warehouse or retailer into the hands of the customer, or the “last mile.” While this step in the delivery process often is far longer than just a mile, it’s one of the most complicated and important steps in the product distribution and logistics process.

Why Is Last-Mile Delivery So Important?

With the rise of Amazon Prime, speedy shipping from the retailer or warehouse to the customer’s doorstep has gone from being a nice-to-have detail to a necessity. Unless you provide an essential, exceptionally rare, or otherwise unique product, if customers aren’t able to receive your products within a few days’ time, they may go elsewhere.

What Are Some Challenges Businesses Face with Last-Mile Delivery?

Because last-mile delivery often involves at least one third-party vendor, as well as a variety of potential snags, businesses face all sorts of challenges when it comes to improving their last-mile delivery. Some of these challenges include:

  • Cost: Unless you are moving large quantities of product through your warehouse, paying for quick last-mile delivery can get expensive, especially in more rural areas. This cost must either be absorbed by your business or passed on to the customer, and each of those options poses its own monetary risks. According to Business Insider, last-mile delivery costs make up 53% of the total cost of product delivery.
  • Logistics: If you house your products in multiple warehouses, or if your customers are ordering from very different areas of the world, being able to guarantee the same delivery time frame to everyone can seem impossible.
  • Reliability: Entrusting this crucial point in your delivery chain to a third-party vendor whose prices may be low but whose efficiency and effectiveness are untested is risky.
  • Competition: If a competitor selling similar products can ship to customers faster and cheaper, it could cause you to lose sales.

What’s ahead for Last-Mile Delivery?

Thanks to the rise in competition, as well as improvements in technology, last-mile delivery is becoming quicker, more reliable, and less expensive than ever before.

Big shipping companies such as UPS, FedEx, DHL, and even USPS are continually looking for ways to make last-mile delivery more efficient and cheaper for customers. In addition, the rise of crowdsourced delivery options – models similar to Uber, Airbnb, and Postmates – means there’s more competition to spur on innovation among the big guys. Depending on where you’re shipping from and shipping to, you may be able to find a small, independent shipping startup that can get packages to your customers in less time and for less money.

Experienced Logistics Company on the East Coast

While we don’t directly handle your last-mile shipping, the skilled team at Cannon Hill Logistics works hard to make sure your products are ready to be shipped to your customers as soon as your shipping vendor of choice arrives. From full-scale warehousing and product distribution solutions down to customer service management and kitting services, Cannon Hill Logistics has what your business needs to succeed.

We’re not a one-size-fits-all logistics company. We design customized solutions for every client based on budget and needs. Contact us today to see how Cannon Hill Logistics can help your business dreams come true!