The current economic climate means that small-to medium-businesses that are looking to expand need to carefully consider their next move. However, with the latest trend of business collaborations this means that more and more logistics companies are curtailing costs and reaping the benefits of pooling resources and information.
In this month’s thought leadership piece, I am going to explore why collaboration is a key factor where business success is concerned.
It is one of the many goals in business to be a success, to be the best, to make the most money and being better than your competitors, and it is a truth universally acknowledged that success is very rarely achieved by just one person alone.
Whether you are an individual celebrity like Lupita N’yongo, a sports team like the Springboks or a multi billion-dollar, internationally recognised corporation, there is a team of people working together with a symbiotic goal in mind behind the scenes.
You could in fact also look at a pride of lions or a colony of ants – each entity is working together towards a common end; just as it takes a village to raise a child, you can argue that it takes a team to run a successful business, a business doesn’t succeed because of the efforts of one man or woman, a business succeeds because there are a selection, or a group of people with different skills and services working together.
Standing With The Right People
Instead of standing alone and struggling as you strive for success, why not weather the proverbial storm with other like “minded” or service-orientated companies. The benefits of collaborating between businesses that offer similar services vastly outweigh the effects of isolation.
Collaboration can and should be utilised between companies that operate in the same industry and can be an effective tool to be implemented, a medium sized courier/ delivery company is a prime example.
Let’s say that you are medium-sized and are succeeding in your targeted area but you want to expand inland or further out into a more rural part of your province or town, but it would cost more to fully expand using your fleet and to gain a reputation among the locals, then it makes sense for you to partner up with an established brand that is known by locals as reliable.
There are two basic reasons why you would consider entering into a collaboration, the first is somewhat “sinister” and involves taking on and beating the competition.
While working with another recognised company you would be gaining access to new markets while utilising the client base that has originally been built up and established. You would gain a larger client base with half the effort and in the future you could perhaps take over their area with other services.
The Beauty Of Collaboration
The other reason is that by sharing costs and information, companies are able to optimise their activities all the while keeping costs down and benefiting from information and databases.
While the decision to enter into a collaborative effort is a good one, as the business owner and decision maker you need to be aware that each business will have their own goals to meet and that there will be decisions that will be made that will not necessarily benefit all involved.
Keeping your costs low is key to business success and turning a decent profit, which in today’s economy every business owner and share-holder realises is vital.
Entering in to a collaboration can be likened the old saying that there is safety in numbers, and this harkens back to the economic climate. Your losses will be less and you will be able to cover costs. Which is why enterprises like The Logistics Network – sponsored by Dovetail – are becoming increasingly popular in the logistics industry.
Not only do they benefit the logistics companies but they are also an asset that can be utilised by the public – having all the information in one place. Not only are they a wealth of information but they offer a support centre and a space that is geared towards benefiting the logistics industry.
Many companies and services are exploring collaborations in the form of information and service sharing platforms, a popular South African/ African platform is the logistics network. The logistics network encapsulates every aspect of the supply chain, from collection to delivery, from courier to break bulk and shipping.
While the logistics network in particular is geared towards companies in Africa it is available as a tool to international shipping and courier companies – as well as warehouse managers and supply chain consultants. Like the logistics industry the various collaborations and service sharing platforms is evolving in leaps and bounds.
Many experts have cited that if economies continue in the direction they are going that collaborations and partnerships will be the only way businesses will have any chance of surviving. As was mentioned in the beginning, it takes a team to make a business a success.
At Dovetail Business Solutions, we truly care about the growth and success of all of our clients. We have dedicated 27 years refining and building our solutions and service offerings to enhance, empower and drive your revenue. View Dovetails range of solutions for your business here.