Business competitiveness is a goal that any company has to reach to stay in the market. That is, a company remains for a long period of time in the market if it is competitive with the rest of companies. When competitive companies come to mind, we think exclusively of large companies, leaving aside medium or small companies (SMEs). SMEs in Spain constitute the majority of the Spanish business fabric. In 2017, 99.87% of the companies, equivalent to 3,274,924 productive units, were made up of SMEs. This situation is not different when we address the issue of transport and logistics operators. Therefore, can only multinationals be competitive?
Obtaining new customers is always a very complex task, therefore, each company must know how to sell its brand. But what is it what attracts the future customer the most? Here we will detail which are the great characteristics that differentiate the multinationals, and the small and medium companies in the logistics field.
Before digging into the differences between both types of companies, we must establish a series of premises. First, there are three types of transport: land (by road and rail), sea and air. This article only focuses on road transport. Second, within the road transport, in turn, can make various distinctions: courier, parcel, groupage, full loads, container ships, special transport and transport of dangerous goods. And, third, we must clarify that this blog will revolve around a specific truck model: the trailers that have a dimension of 13.6 meters and can carry up to a weight of 24 tons.
We all know what large multinationals can offer because their large volume means they can easily comply with the objectives and needs established by customers. This is a matter of great importance because most of them want to forget about the problems that can generate their loads and only need that their merchandise is delivered within the established deadlines. In addition to this valuable benefit, the large volume of transport that these companies have means that they can lower prices and, therefore, be much more competitive.
In contrast to large multinationals, there are small and medium-sized enterprises with limited resources. Being smaller does not necessarily mean worse, and there are several benefits these companies can offer:
-They have close contact with the customer
-They usually perform an excellent customer care service
-They are great at tracking customer routes
On the other hand, some of the disadvantages we identify are the following:
-They set higher prices
-They have a lower number of trucks and collaborators
To illustrate all this, let’s set an example to see both arguments. The customer Z must choose a provider that covers the route Valencia – Madrid since he must make 200 trips between the months of January to March. Company X has 100 trucks of its own plus 50 employees to cover the route Valencia – Madrid. So they can set a price per full trailer of 340 euros. However, company Y has 15 own trucks and 10 collaborators to cover the same route. Having not so many resources, Company Y must increase the price to 380 euros, in order to compete with Company X and be able to get more collaborators.
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