Even in a world where people spend a ton of time online, a tremendous amount of commerce happens in the world. People still buy physical products, so there must be resources to ship those products to customers.
That’s why logistics is a great industry to enter. Reports show that the market reached a value of $15.71 billion in 2022.
If you want a few ideas that will help you brainstorm logistics business ideas, look no further. Below are several logistics company ideas that have a chance of succeeding today.
Freight Forwarder
There has been a growing number of eCommerce stores launching each year. Now that more people than ever shop online, business owners want to take advantage of that trend and advertise their products to a global market.
However, that doesn’t mean shipping to customers globally is easy. That’s where a freight forwarder helps.
Freight forwarders are there to help companies ship products from point A to point B. They help companies execute shipping logistics cheaply and effectively.
Of course, you may need help to do this right. You can reach out to transport and logistics recruitment agencies to find talent to help.
Hot-Shot Trucking
Getting the product to a customer’s general location is hard enough. It’s another challenge once it’s there, and you need to get it to the customer’s home address.
Yes, you can use the postal service to handle this job. The problem is that they won’t work in every situation.
This is where hot-shot trucking companies help. These companies help with last-mile deliveries. They can handle products with a small form factor or use larger trucks to transport large purchases.
Airfreight Business
It’s not always possible to ship products by truck. This is especially true if a company promises quick shipping and can’t wait for a truck to drive across the country.
You need air transport in these situations. However, it’s not easy to create an air transport system yourself when traditional transport companies don’t work with you on your terms.
The good thing about airfreight businesses is that there isn’t as much competition. Many people and companies think it’s too hard to get started. This is an excellent opening for someone willing to take the risk.
Warehouse Services
Warehousing is one of the most important parts of the supply chain. You need a location to safely store products, organize them, and quickly ship them to customers. Setting up a warehouse in the back of a building won’t work well in the long term for product companies.
Most companies turn to a logistics company to get help with this. They send all their inventory to their warehousing company to store and ship their products.
This will take some capital to start up since you need a warehouse facility. To get started, look into a small warehouse space for rent, especially those without a contract to be flexible as you grow. You’ll also need employees and distribution resources to get products to shipping companies.
Travel Management
Products aren’t the only thing companies look for help with transporting. Many businesses regularly travel the globe for business. Managing that on your own isn’t easy.
Some logistic companies focus on transporting people. They work with corporations to organize air travel and whatever other forms of travel are required.
One of the great things about this type of logistics business is that you don’t need as many resources. You’re relying on pre-existing infrastructure to help people travel. It’s essentially a go-between position to make the lives of business owners and their employees easier.
Of course, this doesn’t stop with just travel either. You can help with lodging, luggage, and other parts of business travel.
Procurement Services
Another choice for people who want to get into logistics is procurement. It’s not easy for companies to find the materials they need to create products. It can take reaching out to many suppliers to find everything they need.
Many companies turn to procurement services to solve this problem. They give these companies their requirements, and the procurement company reaches out to other suppliers to buy the products on their customers’ behalf.
This gives product companies a single point of contact for sourcing supplies.
Freight Broker
There’s another side of the freight business outside of being a freight forwarder. Countless companies offer freight services — each with its own benefits and prices. It’s not easy to navigate that environment and find the best choice.
A freight broker can help in this situation. They work with people who ship products to find the best deal for their needs. They’ll develop delivery routes, negotiate freight pricing, communicate with freight forwarders, and much more.
This business is great for individuals who enjoy working with people and cutting deals.
Supply Chain Management
There are times when companies don’t want to deal with their supply chain at all. They lack the expertise or resources to hire a team and set up a warehouse.
Those companies turn to full-service supply chain management companies. This makes it an excellent opportunity for individuals with the resources to handle a lot of work.
Third-party logistics companies require a lot of capital to set up. You need warehouse space, vendor contracts, and much more. But if you have the resources, 3PL companies can make a lot of cash.
Continue Developing Logistics Business Ideas
It’s not easy to create a logistics company. You have to build trust with other companies and prove that you can handle logistics correctly. It takes work to convince other business owners that you can handle logistics and supply chain management correctly.
That’s why it’s so important to work in a logistics business that makes sense to you. Now that you’ve read the logistics business ideas above, starting a logistics business should be easier.
Do you want to learn more ideas that will help you create a successful company? Head back to the blog to find the latest guides.