In order to advance a social cause, non-profit programs must maximize net revenue and limit operating costs. Non-profit organizations hold onto more of their income from being tax exempt, so the opportunity for improvement lies in logistical performance.
Logistics is the flow of goods from ports to warehouses, manufacturing facilities, distribution centers, wholesalers, and retailers. Therefore, enhancement of the logistical performance of a non-profit organization is essential for increasing revenue and affecting the cause.
What kinds of non-profits are selling merchandise?
At first glance, you might wonder what types of merchandise non-profits are selling. Branded merchandise is a popular product, with logo clothing and accessories. Sales of imported crafts to benefit a specific region is another familiar nonprofit operation. Museum, zoo, and aquariums often run gift stores. All these operations have a complex supply chain that could benefit from efficiency measures. Online direct sales leave plenty of opportunity for efficiency gains that can impact the bottom line.
Ensure visibility into the cycle.
The information available from having full visibility into every step of your supply chain can allow you to make razor-sharp decisions in real time. Strategically, this gives your non-profit an advantage regarding being able to adapt quickly to trends or launch pop-up sales to support short-term causes. Having reliable, up-to-date information available to make critical adjustments can have a crucial impact on your business.
Employ reusable materials.
Reusable materials are more cost-efficient and can be customized to meet your shipping needs, potentially limiting damages or reducing costs due to constant replenishment of disposable containers.
Reusable containers reduce governmental tax wastes because an organization produces less waste by reusing their storage containers. Estimates say that organizations that use reusable containers have 30% less landfill waste. Ultimately, this cuts back on a company’s expenses and increases their overall revenue.
There are three ways logistics can impact revenue.
Three crucial logistics processes can drastically impact revenue and many smaller opportunities for improvement. Specifically, these are the amount of stock transported to the company’s warehouses, the storage capacity of the warehouses, and the customer shipping efficiency.
The size and capacity of a shipping vehicle restrict the amount of stock transported to the warehouses. Storage capacity determines stock availability, which can impact customer service levels and potential sales. Shipping efficiency can backlog inventory at the warehouse and stall any new sales.
Overall, to enhance the logistical performance of a non-profit organization, and its revenue, effective strategies need to be employed to maximize these processes.
Choose better transport containers.
While cardboard is often the vessel of choice for goods due to the inexpensive and disposable nature of the container, it is a costly method because of its physical instability and its potential to interfere with the amount of cargo loaded into transport vehicles.
Bulk containers are large, spacious plastic containers that are very resistant to weight and pressure and which can withstand much more stress than gaylord boxes. Moreover, due to their high resistance, they are not prone to deformities and allow maximal stock-loading into the vehicles.
While bulk containers are initially more expensive to buy, in the long run, they provide a company with higher revenues compared to cardboard boxes; this is because bulk containers are reusable and are very resistant to wear and tear.
Increase storage capacity with organization.
Storing cardboard boxes can have the same drawbacks as shipping. Once boxes are stacked on top of one another, it limits access to crucial goods. Having an organized pick strategy for merchandise, as well as a clear, organized path to reach the goods, is imperative.
While storing materials in the shipping containers is thought to be economical, it can prove more costly in the long term, by restricting the flow of new stock and sales.
A promising method for expanding the storage capacity of a company’s warehouse is through the purchase of industrial-size racks. Racks typically consist of a series of rails joined together, forming a framework used for storing goods. In general, racks are designed to contain a lot of stock without taking up a lot of warehouse space.
Mapping out storage and shipping strategies before purchasing a rack will make the operation as efficient as possible. Racks can be customized to manage specific types of goods and materials, and they come in different weight-bearing capacities and configurations. Namely, these are push-back, flow, selective pallet, cantilever, and stack racks.
Overall, while racks initially require more labor for stacking, they ultimately prove very beneficial in the long term since they increase the flow of new stock and also enhance the shipping process.
Enhance shipping efficiency.
Shipping efficiency can mean limiting the sizes of outbound shipping materials to keep the cost of purchasing boxes and calculating shipping low. In contrast, it can also mean having more shipping box sizes available and being able to calculate shipping on the fly.
Ideal shipping efficiency is crucial for a company because not only does it ensure proper flow of stock but, also can prevent unnecessary traveling costs due to high levels of product demand. Rise to the challenges of shipping by choosing your shipping containers wisely, both inbound and outbound and seek to limit hidden costs by implementing an efficient use of personnel. Consider transportation vessels customized to fit your merchandise so you can transfer the maximum possible stock with the lowest costs.
An efficient method for the maximum shipping of stock involves the use of wooden shipping crates. These crates contain a significant amount of space, allowing a lot of product to be transferred. Also, they are a very safe vessel since wood can resist weight pressure and absorb any shock associated with shipping.
Other positive aspects of wooden shipping crates that can save money for companies are that they can be reused, and they last for a relatively long time.
A non-profit organization’s success is highly dependent on its overall logistics performance since the latter determines its overall revenue. Three crucial processes of a company’s logistics need to be enhanced to ensure maximum profit, and these elements are influenced by the materials used to carry out these processes.
The best materials for maximizing a company’s logistical efficiency are re-usable industrial scale equipment, as they enhance a company’s performance but also reduce unnecessary costs.