Did you know the logistics industry is worth over eight trillion dollars to the US economy each year? Logistics is the backbone of business, providing a strong base for all kinds of commerce.  But many people forget about this vital component of business. They might not be aware of how poorly managed logistics processes can cause issues in the supply chain.  Want to know more about the ways poorly managed logistics can impact your business? Read on! We’ve put together this list to help you better understand the issue. 

1. Your Products Could be Damaged

Logistics isn’t just about moving goods from one point to another. It’s also about packaging and handling.  A company that does not focus on quality might not give your products proper attention.   When companies look to cut corners, they’re unlikely to be as careful as they should be. They might damage your goods in transit, costing you money and damaging your reputation.

2. Low Efficiency

Great businesses are made up of constantly moving parts. Products or services should move along a kind of imaginary production line (or sometimes a real one) to keep things flowing and maintain peak efficiency.  Poor logistics processes will damage your efficiency and cause the rest of your operations to lag behind.   

3. Lose Customers

When your supply chain breaks down, it doesn’t just cause you to lose sales over the course of a day. It can have long-term effects on your business, causing you to lose customers.  Let’s imagine you’re running a bakery. You’ve got shipments ready to roll out, but your shipping services let you down.  The stores that were going to sell your fresh products won’t be able to stock their shelves that day. They might choose to find a different supplier going forward. It doesn’t matter that it wasn’t your fault, business is business and a slip-up like this can be costly. 

4. The Domino Effect

Some say bad things come in threes. Whether that’s true or not, when one thing goes wrong in business, more mishaps are generally just around the corner!  Let’s go back to the bakery example. Without a good logistics system in place, customers are lost. But that’s not the end of their worries. Their cases are full of goodies they might not be able to quickly sell.  This is just an example, but it demonstrates how when one thing goes wrong, it can have a knock-on effect that could cost you greatly. 

Quality Supply Chain Management on Your Side

Poor logistics can be fatal to a business. That’s why you need to work with a company that will provide you with top-notch logistics services!  At Kopf, we’ve got the experience and skills to get the job done, avoiding the pitfalls listed above.  Discover our solutions to your logistics problems today, then jump in and get our help with whatever you need.