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Transportation, distribution and logistics

The logistics behind the distribution of your products and services can have a major impact on your bottom line. Examine ways you can ensure your product distribution methods are optimal.

Transportation and Distribution Channels

How you distribute your products and deliver your services can affect both the cost to your business and your clients' satisfaction. You may have to sell directly to your clients, through a manufacturer's marketing staff or via the Internet. When you have to deliver goods to your clients or need to have goods delivered to your business, finding the correct method of transportation comes into play, especially if there are large quantities to move.

Here are some things to consider in the distribution of your products:

• Moving merchandise in the correct quantities
• Using the appropriate type of transportation for the goods being transported
• Minimizing overall transportation costs
• Ensuring prompt delivery of the goods

As a business owner, it is necessary to improve your distribution performance and warehouse operations on an ongoing basis. Warehouse and travel time can greatly improve productivity; to that end, logistics planning can monitor travel times and storage locations. You will need to rely on the effective transportation of your goods for both receiving and delivery of goods. The type of transportation your business will use depends on the following:

• Type of products you sell (perishable or non-perishable)
• Time needed to acquire supplies
• Availability of the products
• Time required to get the product to the client
• Access to your suppliers (abroad or in Canada)
• Customs requirements
• Volume of the type of product you are transporting

Transportation of your goods to your business or client is available by air, sea, rail or road. Each method of transportation has its advantages and disadvantages depending on time frame, volume, access to suppliers and cost.

More information:

To learn more about transportation, distribution and logistics, please consult the following information:

• Green Supply Chain Management: Logistics and Transportation Services
  
  http://www.ic.gc.ca/eic/site/dsib-logi.nsf/eng/pj00482.html
  Are you looking for new and innovative ways to stay competitive? Find out how green supply chain management can improve your business and environmental performance.
• VentureOne Program™ - Canada Post
  
  http://www.canadapost.ca/cpo/mc/business/solutions/ventureone.jsf?LOCALE=en&source=canbussite&ecid=ln10005621
  Are shipping costs increasing your overhead? Consider joining this program to receive up to 8% in savings on parcel and document delivery.

Logistics planning

It makes sense to create a logistics plan to track the goods that you receive and those you ship to your customers. Logistics is the management of the movement, storage and delivery of your goods or services to the customer. You can use the plan to manage your inventory and keep an eye on costs.

Create a logistics plan for the following:

• Inbound logistics – the flow of raw materials shipped to your business for manufacturing
• Internal logistics – the movement of raw materials and finished goods from one department of your business to another
• Outbound logistics – the preparation for shipment, and the transportation, of the finished products (i.e. packaging, shipping and handling)

By using logistics planning, you can cut down on production costs, speed up delivery and improve the response time for answering client requests.

International Markets and Logistics

If you are looking for information on how to get your goods to international markets, the following will give you insight on importing, exporting and delivery of your goods.

• Marketing, sales and logistics
  
  http://www.canadabusiness.ca/eng/105/165/925/
  Get customers in export markets and deliver your goods or services to them.