Supply chain business ideas are smart ventures for many reasons. One of the main benefits of owning and running your own supply chain company is that you get to dictate the rules.
You determine what processes will be used, the order in which products are delivered, and most importantly, how much money you make. This will be adding up to the fact we gathered in the best logistics business ideas article we wrote earlier this year.
As far as risk goes, there’s much less than you think. All you need is knowledge of business basics and some personal capital to get started. Since the barrier to entry is not very high, it’s not difficult to get into the supply chain management game.
The following article will provide a list of the top 10 supply chain management business ideas. Be sure to learn more about each one before you decide which one you would like to pursue.
Best Supply Chain Logistics Management Business Ideas
1. Retail distribution center
A retail distribution center is one of the profitable business opportunities in logistics industry serving as the hub of operations for a chain of retail stores. The actual space is used to drop off and pick up products so that they can either be sold or distributed to other retail locations.
Many companies will have their own warehouses, but they will often choose to rent warehousing at a distribution center instead because it’s a more cost-effective way of dealing with inventory as well as distribution.
2. Package-retrieval service
A number of companies don’t have the supplies they need at their disposal because they are scattered all over the place.
For these companies, a package-retrieval service can be beneficial. The company positions its trucks at convenient places for businesses to pick up their products.
3. Freight forwarder
A freight forwarder is a supply chain business idea that helps through the process of bringing shipments from point A to point B. In most cases, this involves shipping the items from where they are made to where they need to be delivered in order for them to be sold or consumed by consumers.
4. Contract logistics
If you come across a manufacturer that doesn’t have enough space in your own warehouses, contract logistics can help. This is one of the business opportunities in the logistics industry that involves working with another company to handle all the storage, shipping, stocking, and other storage needs that go into making a product.
This allows the manufacturer to focus on its core competency while offering convenient handling support services to clients. This is actually one of the new ideas in logistics business
5. Warehousing and storage
A lot of companies don’t want to deal with the hassle of having to store their own goods. They simply want a third-party logistics management business that they can rely on.
If you offer warehousing and storage services, you can build up a steady stream of profits by renting out storage space to companies who need it.
6. 3PL (Third Party Logistics) company
Another type of logistics business involves transporting goods for other businesses. This is more of a full-service type of delivery than the other options on this list. 3PL companies will pick up goods that need to be delivered and then drop them off at their destination.
7. Freight broker
Freight brokers are responsible for negotiating prices and finding the best delivery route for people who have shipments that need to get somewhere. This requires a great deal of organization, communication, and negotiation skills if you want to become successful.
If you’re looking for new ideas in the logistics business, e-commerce is one great option. However, you will need to be very organized, because this is still a physical business in most cases.
Most of the work involves selling products online as well as providing shipping and distribution services to end users.
9. Reverse logistics
Reverse logistics is one of the most important facets of supply chain management. It involves taking unsold goods and getting them back into the system as quickly and efficiently as possible.
This means that companies will get a second chance to sell products to new customers, or they will recycle the goods in some other way. This is an important and lucrative supply chain business idea for anyone who wants to get started.
Procurement is another supply chain management business idea that has the potential to make some serious money. This means providing a service that allows other companies to get the materials they need for their own products, at a price that will allow them to be profitable as well.
For example, an apparel company can hire a retail sourcing manager to find out where their specific fabrics are coming from, and then arrange for those items to be delivered in a timely manner.
Is Supply Chain Business the way?
Supply chain business ideas are one of the best ways to increase your profits and improve the bottom line. There are many different types of opportunities that you can pursue, and some might require more capital than others. However, if you’re looking for a new revenue stream, you can’t go wrong with these business opportunities in the logistics industry.