The Entrepreneurs Guide to Logistics


Logistics is as important to the business world as kidneys to a human body. It is the part that runs the wheels between successful and timely manufacturing and supply. It is the most essential part for any business to be able to reach the consumers demanding the goods and to attain raw material from other parts of the country or state.  

This is the reason why many entrepreneurs decide to get into the logistics business. The business is highly profitable if done right, but it also comes with a lot of competition in the market. Even though the trade of logistics might seem simple from the outside, many entrepreneurs have tried and failed in the sector. This happens to most of the business owners who got started up without complete knowledge and less experience. A good logistics and transport business is more than just the best delivery routes and faster courier service. It requires planning, adaptation to developing transportation rules and keeping up with the demand of clients. Here are a few things that might help you take your logistics business up a few notches-  

Use the Right Shipping Method

Being a manager and owner of a logistics business, you’re supposed to be aware of the common shipping methods used by transporters. You must be able to choose between Less than Truck Load (LTL) and Full Truck Load (FTL). However, if you’re just starting out in the business, choosing between the two can be a tricky job. Let’s have a look at what both the methods include to help you choose the best one.  

Less Than Truckload Shipping

LTL shipping is a method that takes in multiple shipments from a number of clients. Hence, the client needs to pay only for the weight and space that it takes onto the truck doing the shipment. For example, if a client uses only one-third of the space on the truck, they have to pay for the other shipments that can be fit into the same space but are now taking extra space. LTL is the right choice for a logistics business that caters to a number of clients from different small scale businesses. Such businesses only need logistics for small deliveries, but they take time since one truck carries the load that has to go out at various places, hence taking more time. If you’re choosing this shipping method, be sure to manage the deliveries efficiently since different clients at once can be a confusing task for the delivery men.  

Full Truckload Shipping

FTL, to put it in simple words, is the opposite of LTL shipping. While LTL takes in number queries and different drop points, FTL allows businesses to use ground freight transportation that includes a whole truck for servicing just one client. Such deliveries generally have one pickup and one drop point. Hence, the client needs to pay for the whole truck, regardless of how much space is being used up in the truck. However, the pricing depends on the types and sizes of trucks being hired along with the distance between the pickup and drop points. You must choose this method of shipping only when you’re running with the big league clients that hire full trucks to make large deliveries in record time. Such clients are not only ready to pay for the truck, but they may also pay the overhead for securing their deliveries and extra labor charges. Enough for you to skim off some good profits.  

Analyzing and Controlling Operating Costs

It is important for every business to know and regulate its operating costs to increase profits. Failing to have proper knowledge about fixed and variable costs may result in losing money and not knowing the clarity between profits and losses. Fixed costs are driver salaries, insurance, permits, and so on. Variable costs, on the other hand, are fuel costs, maintenance charges and everything that you only spend when needed. Out of both the kind of costs you incur, variable costs like fuel and maintenance are the most important ones. Tracking fuel costs is an essential tip for any logistics business. Keeping the fuel usage under the economy may be the difference between extra profits and unnecessary charges. Thus, keep your fuel expenses to a minimum.    

We hope that these tips will prove helpful for your logistics business. The logistics business sits entirely on the shoulders of efficient drivers and good management. Keeping your drivers happy and checking up on the shipments yourself can be a time saver and make you money in the field of logistics.


Sudarsan Chakraborty is a professional writer. He contributes to many high-quality blogs. He loves to write on various topics.