As globalisation has expanded, and the world has become smaller/more interconnected, logistics is a word that more people are becoming familiar with. In a nutshell, 'logistics' involves efficiently moving goods from a point of origin to their destination, ensuring that transport, storage and final delivery are all handled along the way.
If you are selling ANY sort of product - as a manufacturer, wholesaler or retailer - you are not only involved with logistics already. You are completely reliant upon it! It's no good having products to sell if you can't get them to your final customer!
Problems arise when trucks break down, cost of fuel goes up and ships can't navigate certain parts of the globe - all of which has really hit home in the first quarter of 2026 with conflict in the Middle East. Alot of people take a 'That will never happen approach', but in the last 5-10 years, there have been multiple instances of global logistics being thrown into chaos (think COVID, port strikes, Suez canal blockages and Middle East conflict).
At times like those, it's crucial to have contacts and backup plans for all your shipping. Ask yourself the following questions:
- If you were unable to get ANY stock for 3 months, what would happen to your business? Do you have enough stock on hand to last that long?
- If you ocean freight your stock, have you considered air freight? What sort of costs would be involved if you had to air freight stock for 6 months? What would that do to your profitability?
- Are you shipping LCL (less than a container load)? Have you looked at the pricing for a full container load (FCL)? What is the tipping point at which FCL shipping would help save freight costs on a per item basis?
Logistics can seem intimidating and hard to navigate, but with the right advice and people on your side, it's not too hard to ensure that your business is protected from global supply shocks and conflicts.
