Why is the status quo so dangerous for a Logistics company?
The biggest bunch of Logistics entrepreneurs can be separated into two different groups.
One group is the aggressive ones constantly looking for ways to improve their operations and grow their business; they are like wolves looking for a meal, and if they do not find something, they create something out of nothing.
Then, the second type of entrepreneur looks to have a comfortable life, decent income, and as lesser stress as possible. Therefore, they choose the safer way of growing their business, looking cautious to any improvement and enormous investment’s.
Which one of them is better?
I believe that every type has its advantages and disadvantages. For example, the status quo lower tends to make lesser mistakes and stay longer in business, but they limit its growth potential. And the wolves can burn quickly by taking wrong choices and sacrificing the business to ambition.
And there can be a third option that I call the Lizards way. When a company is looking for ways to grow, it’s a business logically by using out all the possibilities provided by today’s global world and evolving technologies. I’m talking about using out all the outsourcing possibilities, using out all available technologies to boost your operations, and going together with the new trends of the business.
I prefer the third group more than the status quo and volves because this is the way forward in today’s fast-moving world.
So why is the status quo becoming so dangerous?
Because now growth is the only way to sustain your business for the long run. If you do not grow, you will receive lesser funds that could be invested in your employees, technologies, sustainability requirements, marketing, and sales activities. And if you will not invest in those activities, eventually, you will lose your market share to the faster ones.
The other important part is related to employees. One of the most significant issues the Logistics industry is facing today is employee shortage. And this problem will deepen with each year as the new generation is instead to pick influencers career, then the carrier in Logistics. So companies need to create a great working environment for their employees, pay good salaries and implement new management styles into their operations if they are willing to attract future talent. And this is more difficult to achieve for a status quo company than for a growth company.
And the status quo is a bad thing for your existing employees as well. If your employees do not have the potential to rise, learn, contribute to the company’s success, or are overwhelmed with tasks, they will eventually leave your company. This is precisely why so many logistics companies serve as a teaching ground for rookies that leave to other companies eventually.
Although it’s crystal clear that the status quo hurts your business, I’m so shocked by the number of companies still choosing the way of doing nothing, or growing organically with referrals only, do not invest in technologies and their employees.
One of the reasons companies stick to the old way is that they think that all of those changes are not worth it, that they are too expensive, or they do not know where to start.
Other leaders are just thinking that, well, I know that something can be improved, but will this pay off, and when will this pay off?
If you start investing in yourself, reading books, exercising, eating healthy food, do you start feeling good from the first day? No, of course, this is a process that lead’s to better yourself.
The same is true with any improvement projects of your company. Although I’m not saying that you need to do it all at once, of course, you need to choose wisely which changes to implement, which will generate the best ROI, pay attention to your competition, and look at future trends.
In the end, I would say that the improvement way is worth it. Furthermore, I believe this is the best time to start doing this because many Logistics business has earned good money in the previous year. Secondly, pandemics are changing your customers’ buying behaviors. Finally, logistics is shifting from a transactional business perspective to a value creation perspective; you need to shift with this new trend together.
If you are looking for ways to improve your services, differentiate from the competition, and scale faster using our business process outsourcing and do not know where to start, please book a strategy session with us. We are helping Logistic’s business worldwide to find the best way of doing business in today’s fast-moving world.
Once again, you can book your sessions by pressing the link below.
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P.s. Which way are you choosing?