Marketing Strategies for a Logistic Business (2024)

Some say the logistics business is just a “trucking business”, however it’s much more than that. Logistics companies initiate the transport and storage of goods across countries. “Goods” do not only refer to food but also information and services.

The four major functions of logistics companies are, order fulfillment, management of inventory, warehousing, and coordinating with other logistics businesses. Essentially, logistic companies help in keeping the flow of products in the supply chain stable.

How To Start a Logistics Business

Starting a logistics business is never simple. There are various things that one has to keep in mind, principles and dreams alone are not enough. These are only a few things that one has to be critical about when starting a logistics company:

  1. Funding

A logistics business does not only possess a fleet of trucks but also personnel who can and will operate the machines. The company would also need a logistics dispatcher who would be responsible for advising the truck driver about road conditions that could delay or hasten the transport. Adding to that, the company will also need a freight agent, supply chain manager, warehouse logistics manager, logistics engineer, customer service representative, and a lot more.

Now, how to get funding? Venture capital has worked alongside logistics companies for years now. Simply put, venture capital includes private sectors, mainly wealthy agencies or individuals, investing in a start-up company. The companies could also receive consultations and financial guidance from the investors which will help them if they decide to use it.

If venture capital funding is not on the list, you could also get funding through self-funding, quite similar to bootstrapping in which you use your money or existing resources to fund the business. Banks are also offering loans but people nowadays see this as a not-so-good way to start a business.

When you finally get the money you need, you have to consider the things that you will spend it on, such as fuel costs and maintenance costs for the vehicles, training funds for newly hired drivers and employees, and insurance. However, the most important things to consider are the salaries of the employees that run your company. They keep the company “alive and kicking”, after all.

  1. Licenses and permits

An aspiring businessman needs to know which licenses and permits to acquire before operating a business. However, the legal processes of operating a business vary across the globe. However there is no doubt that you must register your business first. Then you have to acquire the business number that will be used to identify and locate your business.

Along with acquiring those, you will also have to get the licenses and permits that will be your key to operating legally. The license in question is a business license that will be issued to you by the government. It is advisable to hire a lawyer that will guide you in the acquisition of the documents you will need to start your business.

  1. Establishing the business

A business model will serve as the framework of your company. It is the plan you have for making a profit through your company. This is essential as it not only helps you make money, but it makes you look good to investors.

A standard business model of a logistics company includes three things: gain share, a broker model, and a commission model. These are the most common things that companies use. To elaborate:

  • Gain share or gainsharing in simple words, is dividing the profits into two. This is usually followed by third-party logistics (3PL) providers. It works like this, there is an agreement that half of the profit will be given to the other agencies who have helped the other significantly. It is like “rewarding” a person who helped you get through things.
  • Broker model or brokerage model, is either a business-to-consumer (B2C) or business-to-business (B2B) transaction. B2C refers to directly selling the products and services to the consumers or clients who will be benefiting from the goods. As for B2B transactions, this refers to businesses delivering the goods directly to another business.
  • Commission model is just like any other commission-based service. However, in logistics, there is a 3PL that works for you. 3PL will act as an intermediary between the company and the consumers. It promotes transparency in the process of the transactions.

Aside from the usual business models, there are also business structures that anyone should follow to ensure their success. It determines how you run your company, from paying taxes to daily transactions. Here are several business models that you can choose from:

  • Sole proprietorship is the most common type of business structure and is considered the least formal. The company is owned and controlled by one person. They have full authority over the company. Keep in mind that the owner will be the only one liable if there are complications in the company that is left unsolved.
  • Partnership is when the company is owned by several individuals. This type of structure can vary between general and limited partnership. General partnership refers to the owners assuming equal responsibilities and receives an equal share of the profit.

A limited partnership has general partners and limited partners. General partners assume their role just like in the general partnership. However, the limited partners will only serve as investors and have limited authority when it comes to making decisions. Sometimes they have no right to make such decisions.

  • Corporation is more expensive and complex compared to other business structures. This refers to a legal entity that is separate from the business owners. A corporation protects its personnel from personal liabilities.

Once you understand how to start a logistics company, you can now start purchasing the equipment you need including specific vehicles.

Marketing Strategies for a Logistic Business (2)

The Marketing Strategies for Logistics Businesses

Any company needs a marketing strategy that is flexible enough to adapt to the modernities of the world. It is the game plan of the business. It determines how you will operate for a span of time. It is also important to allocate the budget for marketing.

  1. Social media marketing

Social media has become the largest consumed product in the world, there is no doubt about that. That is why you should utilize its services. A social media account for your logistics company will serve as your digital marketing platform.

Establish an online presence as well. Post updates or even the accomplishments your company has attained in a certain length of time. Create a first good impression on social media consumers and keep it that way.

  1. Set up a buyer representation

This usually refers to establishing a near-fictional character that will be benefited from your logistics services. Their details should be displayed in an ad that provides goals as well as your target market demographics. Demographics are considered important because they contain the age, gender, employment, income level, etc. of a certain population.

  1. Pay-Per-Click marketing

Pay-per-click or PPC is a strategy in which the advertisers pay every time their online ad is clicked on. Consequently, the user will be directed to your site and has a chance to review the content including the details about your business transaction. It is as if you are attracting people to visit your site.

  1. Search Engine Optimization (SEO)

SEO is a way of modifying the content of your site so that search engines will likely pick it up and show it as a top result whenever a person looks for something on the Internet. By modifying your website’s content, you are increasing your chances of being seen across the web. These are just some examples that will benefit your SEO: blog posts, social media content, videos such as tutorials or promotional videos, and the like.

  1. Initiate an affiliate program

Partnering with a certain organization is helpful for expanding your network and thereby making your company known. This also promotes bonds among other companies that will be beneficial to you in the long run. Affiliate companies can also assist and guide you in running your business.

Logistics have come a long way from the first World War, as it once was a medium of the military to send in troops. Now it is used in the world of consumerism and has started to grow through the decades. In times of crisis, this kind of business helps the world through services that ensure people that the essential products or necessities that they need will be within their reach. They help in keeping the economy running in terms of transporting goods, which facilitate the flow of trade in any given country. Furthermore, a logistics company helps in economic growth as it triggers a chain of events that will benefit the economy.

However, due to the health crises the world is experiencing right now, some circ*mstances will disrupt the delivery of goods. With what is happening right now, what we all need to do is just be patient and understand that we are not the only customer experiencing such misfortune. Companies do not work for only one person.

Marketing Strategies for a Logistic Business (2024)


What are the 5 logistics strategies? ›

The five elements of logistics
  • Storage, warehousing and materials handling.
  • Packaging and unitisation.
  • Inventory.
  • Transport.
  • Information and control.

What are two types of logistic strategies? ›

There are six different types of logistics strategies:
  • Inbound Logistics. Inbound logistics is sourcing and transporting raw material from a supplier to the buyer's manufacturing unit. ...
  • Outbound Logistics. ...
  • Reverse Logistics. ...
  • Distribution Logistics. ...
  • Third Party Logistics. ...
  • Fourth Party Logistics.
13 Oct 2021

How can marketing be useful in logistics? ›

The logistics industry is directly based on customer satisfaction and cost reduction. Marketing focuses its actions on selling, directs them toward customers but also generates actions so that those customers who were initially captured are satisfied with the service provided.

What are the 3 C's of logistics? ›

What are the 3cs of logistics? This method has you focusing your analysis on the 3C's or strategic triangle: the customers, the competitors and the corporation.

What are the 7 R's of logistics? ›

In this step, we look at the 7 Rs of logistics. So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

What are the 6 R's of logistics? ›

What are the 7 R's of logistics? ⚽ The 7 R's (or Rights) are the set of ideals and principles used by organizations that can be a foundation to be successful in the trucking and logistics industry. These are the 'right' product, quantity, condition, place, customer, time, and price.

What are the 3 main logistics objectives? ›

There are five main objectives of the logistics management process:
  • Minimize Manufacturing Costs.
  • Efficient Flow of Operations.
  • Better Communication Flow.
  • Provides Competitive Edge.
  • Better Inventory Management.
  • Logistics Management Solution.
25 Feb 2020

What are the 6 logistics goals? ›

Objectives of Logistics Management
  • Improve Supply Chain Efficiency. ...
  • Inventory Management. ...
  • Fulfill customer requirements. ...
  • Mitigate product damage. ...
  • Reduce Operational Cost. ...
  • Quick Response. ...
  • Optimize delivery performance. ...
  • Efficient Flow of Information.
22 Mar 2022

What are the four 4 major logistics function? ›

Tip. The four functions of marketing logistics are product, price, place and promotion.

What are the 4 key processes in logistics? ›

Key Points:

Logistics processes can include warehousing, inventory, transport, material handling, and control.

How can logistics attract customers? ›

So we bring you a few tips to help you boost your sales figures and grow your business:
  1. Amplify sales predictability. It is very critical to have a sales strategy in place. ...
  2. Keep the leads coming. ...
  3. Manage your leads/customers better. ...
  4. Offer what the customer needs. ...
  5. Build your brand. ...
  6. Open a new location/platform.

How do you sell logistics services? ›

How to Boost Sales in Logistics in 7 Steps
  1. Define a Formal Sales Process. ...
  2. Start Inbound Marketing. ...
  3. Update Sales Enablement Resources. ...
  4. Book Trade Shows (or Other Events) For Lead Capture. ...
  5. Set Up a Sales Automation Platform. ...
  6. Differentiate Your Logistics Business Niche. ...
  7. Offer More Complete Services Than the Competition.

How do you satisfy customers in logistics? ›

How to improve customer service in logistics management
  1. Communicate quickly and thoroughly to build trust. ...
  2. Build a process to fuel continual learning for employees. ...
  3. Minimize customer touch points with your team. ...
  4. Take advantage of many communication channels. ...
  5. Unify your communications.
17 Apr 2020

What are the 12 elements of logistics? ›

Terms in this set (12)
  • Design Interface. ...
  • Sustaining Engineering. ...
  • Supply Support. ...
  • Maintenance Planning & Management. ...
  • Packaging, Handling, Storage, and Transportation. ...
  • Technical Data. ...
  • Support Equipment. ...
  • Training & Training Support.

What is C and F in logistics? ›

Description: C&F stands for cost and freight and is always stated as C&F port of importation. The norm is to state the geographic location of the port of importation. For example, C&F Mumbai, India.

Which is the most popular concept of logistics? ›

The most popular concepts of logistics management is the concept of the seven ARS. It is concerned with getting the right product in the right quantity in the right condition at the right place at the right time to the right customer and at the right price.

What is the future of logistics? ›

Building a logistics hub for the future

The Sea-to-Air Logistics Hub is geared towards perishables, medical devices, physical retail goods and other cargo for which speed of delivery is a priority. To make this a reality, the Kingdom uses technology to expedite shipments as rapidly and efficiently as possible.

What are the principles of logistics? ›

Therefore logisticians must understand and apply logistics Principles in managing logistics support, Logistics principles has eight principles those are : Logistics Intelligence, Objective, Generative logistics, Interdependence Simplicity, Timeliness, Forward Impetus and Security.

Is Six Sigma used in logistics? ›

The Six Sigma process helps your Logistics professionals devise effective ways of achieving both perfect quality and speed simultaneously. The process of eliminating errors in products naturally leads to improved quality. Perceived quality is diminished when products do not reach their customers as quickly as possible.

What are the 3 basic strategies? ›

According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.

What are the 7 elements of strategy? ›

Here are the 7 basic elements of a strategic plan: vision, mission, SWOT analysis, core values, goals, objectives, and action plans.

What are the 3 main strategies in business? ›

There are generally 3 (sometimes broken into 4) Types of Business Strategies:
  • Organizational (Corporate) Strategy.
  • Business (Competitive) Strategy.
  • Functional Strategy.
  • Operating Strategy.
7 Apr 2022

How do I create a logistics plan? ›

How to Make a Good Logistics Plan
  1. Have Reliable and Good Suppliers. Every company needs to get products and materials needed to produce its product. ...
  2. Optimize Inventory Management. ...
  3. Integrate the Company Divisions. ...
  4. Meet Deadlines and Keep your Word.

What are the 3 key drivers of success in global logistics? ›

Time, cost and quality are key drivers of success in global logistics.

What are the six strategies to attract customers? ›

The following six strategies will help you attract and keep customers.
  • Offer quality products. Good quality is the most important reason cited by consumers for buying directly from farmers. ...
  • Cultivate good people skills. ...
  • Know your customers. ...
  • Use attractive packaging. ...
  • Let customers try samples. ...
  • Be willing to change.

What are 4 ways to attract customers? ›

Every small business owner wants to attract new customers. Here are 10 time-tested ways to help you bring in “new blood.”
  • Ask for referrals. ...
  • Network. ...
  • Offer discounts and incentives for new customers only. ...
  • Re-contact old customers. ...
  • Improve your website. ...
  • Partner with complementary businesses. ...
  • Promote your expertise.
6 Apr 2017

What are the five strategies to attract customers? ›

5 Tips for Attracting New Customers
  • Identify Your Ideal New Customers. ...
  • Use Direct Response Marketing to Attract Customers. ...
  • Give Something Away to Entice New Customers. ...
  • Give Your Business a Face Lift to Increase Sales. ...
  • Get The (Right) Word Out.

What are 5p of logistics? ›

The major cause of conflict for logistics and marketing interface is related to 5Ps (product, price, place, promotion and packaging) of marketing. Without the successful link of logistics and marketing, the firm may be unable to provide good customer service, resulting in dissatisfied customer or a lost sale.

How do I market a new logistics company? ›

Marketing Strategies for the Logistics Sector
  1. Create Unique, SEO-Driven Content.
  2. Build Relationships And Lists.
  3. Market Your Content Through Search Engines and Directories.
12 Apr 2021

Who is the target market for logistics company? ›

For example, a logistics company may want to reach those in the industries of Manufacturing, Supply Chain, Logistics, Transportation, Distribution and Freight.

How do we win and retain customers through logistics? ›

Customer Retention in Logistics
  1. Customer Satisfaction. Business owners understand the fundamental part of their business's success and growth is the customers. ...
  2. Fulfillment. ...
  3. Quick Delivery Times. ...
  4. Ease of Use. ...
  5. Backend Operations that Aid in Retention. ...
  6. Resolving Customer Issues. ...
  7. Keeping Schedules.

What are the 10 ways to meet and satisfy your customers need? ›

10 Ways to Meet and Satisfy Your Customer's Needs
  • Understand Your Customer's Needs.
  • Listen to their Feedback.
  • Set Realistic Expectations.
  • Pay Attention to Your Competitors.
  • Be Consistent in Communicating with Your Customers.
  • Take User Experience as a Priority 
  • Foster Loyalty through Proactive Customer Relations.
15 Nov 2019

What are some customer satisfaction strategies? ›

20 Ways to Increase Customer Satisfaction
  • Understand your customers. ...
  • Create a customer-centric culture. ...
  • Put yourself in the customer's shoes. ...
  • Lead with empathy, always. ...
  • Always ask for feedback. ...
  • Act on customer feedback. ...
  • Give your support teams everything they need to succeed. ...
  • Respond to customer reviews.
30 Mar 2022

What are the 4 major logistics functions? ›

How Logistics Functions ? 6 Major Functions of Logistics.
  • Order processing.
  • Inventory Management & Control.
  • Warehousing.
  • Transportation.
  • Logistical Packaging.
  • Monitoring.

How do you set KPI in logistics? ›

Set up KPIs for logistics by first defining your company's logistics goals. Ensure that the plans are SMART: specific, measurable, achievable, relevant and timely. Determine goals for both leading and lagging indicators. Use the goals to identify the information you need from the KPIs.

How do you measure success in logistics? ›

A primary way to measure logistics success involves establishing and comparing KPIs while taking into account market conditions. When extreme change occurs, like unprecedented supply chain stress, those indicators provide a baseline from which to adapt previous assumptions.

What does KPI mean in logistics? ›

A logistics key performance indicator (KPI) is a quantitative tool used by businesses to measure performance within their logistics department. Logistics KPIs can measure a variety of metrics, most of which pertain to purchasing, warehousing, transportation, delivery of goods, and financials.

How do logistics companies get customers? ›

You can do this either through: Inbound marketing—where you attract customers to your website through SEO or ask people to call you by sharing your visiting card or. Outbound marketing—where you acquire leads through emails, SMSes, trade magazine ads, event sponsorships, cold calling, etc.

What are the 12 logistics activities? ›

Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory control, supply/demand planning and management of third-party logistics services providers.

What are the 12 logistics elements? ›

Terms in this set (12)
  • Design Interface. ...
  • Sustaining Engineering. ...
  • Supply Support. ...
  • Maintenance Planning & Management. ...
  • Packaging, Handling, Storage, and Transportation. ...
  • Technical Data. ...
  • Support Equipment. ...
  • Training & Training Support.

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