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Improved logistics = Improved margins.

Posted by Daniel Fanning on 20 September 2016

If your business spends more time importing products than distributing them to customers not only are your priorities wrong, you're comprising the health of your business and as well as profits.

The profitability of product-based businesses depends on selling products (and a lot of them). Your business priority should be broadening your customer base and opening fast distribution channels to your customers, not the logistics of importing your products in the first place.

Importing products effectively in terms of cost, speed of delivery and making sure they arrive in optimum condition takes experience, skill and time - and in business time is money.

One of the prime reasons businesses engage in in-house importing and shipping is the belief that it is cheaper. Unfortunately, this could not be further from the truth.

International importing can require liaising with: manufacturers; overseas shipping or air freight agents; international and local customs agents; local transport companies; and, warehousing suppliers. That's a lot to get done, and a lot to get right and, if you get it wrong, mistakes can be costly.

Logistics professionals have the experience to avoid mistakes as well as access to shipping and airfreight rates not available to business owners.

Quality providers also offer expert advice on packaging and the cost variables attached to the seasonality of shipping, so you can finesse timing of manufacturing and buying terms, which allows you to move your goods to Australia more cheaply and increase your margins.

But not all Geelong logistics operators offer true end-to-end logistics solutions. Before you put your trust into a Geelong logistics professional make sure they are not a 'one trick pony' and instead have an extensive freight and global logistics network as well as experience shipping from a range of worldwide ports, especially in the country where your products are manufactured.

If you're currently handling importing in-house, or you're not satisfied with the level of experience of your current logistics operator why not have your processes assessed by D&D Worldwide Logistics managing director Daniel Fanning.

Geelong businesses can currently access a 1.5 hour session with Mr Fanning for $50 under the Federal Government-funded Small Business Smart Business program. To book go to: http://smallbusinesssmartbusiness.com.au/mentoring/

Author: Daniel Fanning

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