No matter what area of business you operate it, you’re almost certain to be competing over contracts with companies who have more money, resources and manpower at their disposal than you do. For many small companies, this imbalance makes winning lucrative contracts next to impossible if they’re matched against one of the big players in their industry, often leaving small businesses operating purely in local – rather than national – markets.
But one industry where smaller providers consistently win contracts against bigger names is logistics, an area that boasts more than 178,000 companies registered in the UK alone (many of which are operated by a single person). So why are smaller logistics consultants seemingly able to reliably attract lucrative contracts even when competing against much bigger firms?
The key lies in the important of quality, reliability and customer service in the industry, and how able smaller companies are to provide this on a consistent basis. Smaller companies are, by their nature, far more agile, making them able to respond to short notice jobs and unusual requests (which are common in the logistics field). This agility means they find it much easier to adapt to contract requirements and meet the needs of their customers.
The big boys in the industry are likely to continue winning heavy-traffic, national contracts as they have the infrastructure and manpower to cope with them, but they are often unable to adapt quickly enough to win the trust and confidence of companies who require that little extra in the way of flexibility, care and attention. As a result, smaller providers can establish a genuine relationship with their customers and leave them feeling valued and their products genuinely looked after, making them far more likely to recommend smaller suppliers and to continue to use them as they grow.
So if you’re running a small business and struggling to compete against bigger firms, consider how your size may afford you certain advantages, and – to take a note from the logistics industry – see what you can offer than the larger companies simply can’t provide.