July 6, 2023

Logistics Challenges for Mid-Sized Businesses

Growth is the ultimate goal of every company, but only a few are fully prepared for efficiently scaling their operations. Small businesses account for 99% of all United States businesses, but just a tiny percentage of them are capable of taking advantage of technological opportunities to improve their efficiency and become medium size.

Family businesses usually make the necessary distribution efforts themselves; however, delivering products from point A to point B is not always straightforward. That’s why logistics exist; while it is not an exact science, it comprises multiple processes and complex suites. And that is the reason why a company realizes they need logistics services.

Neither small nor big

Many middle-market companies tend to execute supply chain plans reflecting those of their bigger counterparts. That means diversifying suppliers, bolstering inventory, and finding substitute raw materials, among other strategies. It is not necessarily a bad thing to do, but these companies, more likely than not, should face the reality of being unable to deal with supply chain disruptions that slow down their operations.

At the same time, it is inspiring to witness companies’ ability to adapt and overcome significant challenges by making strategic changes. One of these critical decisions is trusting 3PL partners. By doing that, mid-size businesses can focus on producing while their third-party logistics provider keeps the supply chain running smoothly.

logistics driver

SMEs logistical challenges

Mid-sized, rapidly expanding companies may need to rely on outsourced experts until they can hire or train their employees in those areas. In addition to managing talent, their lack of global capabilities may also pose a challenge. As these companies compete with larger rivals, they may not have the same advantages in terms of scale, such as negotiating better transportation rates. Moreover, they may still be developing technology to improve efficiencies in warehousing and transportation.

Regarding logistics partners, mid-market companies tend to be highly selective. They prioritize building strategic relationships and don’t usually work with multiple truck brokerage firms and freight forwarders. Instead, they prefer to concentrate their spending on a trustworthy transportation partner.

At Last Mile Logistics, we can take your business to the next level with our advanced capabilities and vast experience. Let’s join our qualities to make for the best match for growth-oriented companies. So please, call us if you have an RFP or any concerns you may have.