When self-distribution becomes self-destruction
All emerging brands should be laser focused on their sales metrics for the first 24 months. Retail sales growth does not happen by osmosis or magic. It takes persistent hard work and a well-executed strategy.
Time and time again we witness well-meaning brands trying to save pennies on logistics at the expense dollars in sales. While doing a few months of sales and delivery calls is a great way to get early traction and better understand the order-to-cash cycle, there must be an endpoint.
After production costs, logistics will be your biggest expense in your calculation of COGS (cost of goods sold). As such, ensure you plan for third party logistics from the get-go, so you are able to preserve your margin long term.
To help you along, we have some sage advice on how to avoid “self-destruction by self-distribution”.
Efficiency and Focus
Time Management
Wholesale brands often find themselves juggling multiple responsibilities, from production to customer service. Managing deliveries in-house can be a time-consuming endeavor. Here’s why outsourcing to a logistics partner like Purchs makes sense:
Streamlined Operations: Purchs is a specialized sales & logistics platform designed for retail brands. By entrusting us with deliveries, you free up valuable time and resources.
Focus on Core Competencies: Food brand founders excel when they concentrate on what they do best—producing quality goods and sharing your brand story. Let Purchs handle the rest.
Cost-Effectiveness
Hidden Costs of In-House Deliveries
If you are making deliveries yourself, your time is not free. If you are making deliveries as the founder, you are not focused on sales – your most important metric. So, while it may seem cost-effective to handle logistics internally, consider the following factors:
Labor Costs & Retention: Hiring and training delivery personnel can be expensive.
Vehicle Maintenance: Maintaining a warehouse and delivery vehicles adds ongoing and sometimes unpredictable costs that you will have to pass onto your customer. This will hinder your brand’s ability to compete and puts your margin at risk.
Route Optimization: Purchs’ logistics partners have expertise in optimizing delivery routes, reducing fuel expenses.
Carbon Emissions: By consolidating your product orders with other emerging brands on the Purchs platform, we all reduce carbon emissions and improve a products’ carbon score; a growing consideration of many retailers.
Scalability and Reach
Scaling Up with Ease
As your retail business grows, so does the demand for efficient deliveries. Purchs offers scalability advantages:
Expanded Reach: Purchs operates across regions, allowing you to reach a broader customer base.
Flexibility: Purchs adapts to seasonal fluctuations and sudden spikes in demand. Plus, as your brands grows, your needs will change Purchs offers a continuum of services to align with your brand at every growth stage.
Customer Satisfaction
Reliable Deliveries
Timely and reliable deliveries enhance customer satisfaction:
Consistency: Purchs follows established schedules, ensuring timely deliveries.
Professionalism: Retailers appreciate well-managed deliveries, which reflect positively on your brand.
Streamlined Processes: Busy retailers will appreciate the efficiency of consolidated deliveries.
Conclusion
Enlisting the services of a distributor like Purchs can come much earlier than you think! By doing so, you can focus on growth, quality, and customer relationships. Remember, it’s not only about delivering a product —it’s about delivering excellence!
