Startup Success: 6 strategies for starting a distribution company

Do you consider yourself “a planner”?

The high failure rate of startups shows how important it is to prepare if you want your new business to succeed. 

Don’t be disheartened- we can help! 

Companies that plan, and put those plans into action, are more likely to survive and thrive in highly competitive markets - especially in industries that are always on the go, such as the distribution business.

Here, our guest blogger Atreyee Chowdhury highlights six strategies for distribution startups to ensure that you take care of every aspect of running a business as they venture into the market in search of short term success and long term growth. Read on to learn more.

1. Use analytics to unlock your full potential

The vehicles that form your fleet are the most important aspect of your distribution business. To find long-term success with them, you need to make sure that you unlock their optimal potential in every way. 

Elysia battery analytics software
This software studies the cell chemistry of the batteries of your vehicles. It uses targeted analytics to unlock their range, power, and faster charging potential, helping you unlock better performance in a secure manner.

It also works to enhance battery life by up to 30% through:

• superior financing,

• greater warranty assurance, and

• second-life potential.

Using analytics to continuously monitor your fleet’s performance helps you gather a large set of data that paves the way for more comprehensive analysis. You can identify patterns that may allow you to perform better at the same variables.

Similarly, you may identify obstacles that hinder the performance of a vehicle. Thorough analysis allows you to work on them without disturbing the current performance of your fleet and internally work to enhance it over time.

With BMS algorithms, a powerful cloud platform, and standard-setting analytics at your disposal, you can work to manage, optimise, and enhance vehicle performance with ease. 

The goal should be to give optimised performance from the beginning to make the most of every vehicle in your fleet. When your fleet performs in the most optimal way, you’re bound to find consistent success with your venture.

2. Preventative maintenance ensures the longevity of your fleet

Another important aspect that governs the success of a distribution startup is how well the fleet is maintained. You want to keep your fleet in top-notch condition at all times rather than running them until you face a problem.

While repairs are a part and parcel of distribution operations, you can certainly minimise their need by practising preventative maintenance. Create your own preventive maintenance checklist for a quick basis.

Preventative maintenance refers to regular maintenance of a fleet regardless of how well it performs and and how often it needs repairs.

Try this template for fleet preventative maintenance on a regular basis. It helps you track common service items across your fleet, plan for upcoming service needs, and easily print out a report for each vehicle. 

Cloud and mobile-based fleet management solutions enable fleets of all sizes to automate fleet operations and manage asset lifecycles.

By connecting your maintenance tasks through various devices, you can:

• automate in-house and outsourced maintenance management,

• receive recall alerts in real time,

• track fuel of individual vehicles and fleets together,

• conduct thorough vehicle and part inspections.

Preventative maintenance goes a long way to extending the shelf life of every vehicle in your fleet and getting quality performance out of them, helping to get the work done faster.

Regular maintenance also helps reduce repair costs. Keeping a close watch on your fleet allows you to quickly identify parts that may need replacing. Stay one step ahead by replacing worn parts before they disrupt operations — saving time, effort, and resources in the long run.

3. Planning to improve productivity

Creating a business plan makes you 16% more likely to have a successful business venture.

It’s common knowledge that entrepreneurs should plan their ventures to avoid pitfalls and seize opportunities better.

When it comes to running a distribution business, there are a number of departments you need to manage simultaneously:

• fleet operations,

• shipping,

• warehousing,

• inventory control,

• customer service,

• marketing,

• analytics, etc.

Planning how these aspects of your business will operate and integrating every department together results in improved productivity.

To do this, you need to educate yourself in the intricacies of the workings of the industry. There are various sources available online and offline that help you understand the nuances of distribution company operations. Use that knowledge to craft plans for all your departments. Execute those plans with the help of analytics.

Your goal should be to craft the most optimised path of operations for every department under your business. This helps you plan ahead for the future while minimising wastage. You’ll also be better prepared to face contingencies and overcome challenges. 

4. Empower your drivers

The drivers of your fleet are the most important cogs in the wheel of your distribution services. They’re the ones performing the most important role. This is why they need the most support from you to be able to perform their role with efficiency and care.

Begin by hiring right

While you can certainly mould and train an employee to fit the needs of your company, it’s much more feasible to hire drivers who have a strong understanding of how to perform operations efficiently while ensuring safety.

Once you hire a suitable team of drivers, you can offer them relevant training, tools and support to understand your company culture. 

Communication tools

Having consistent, real-time communication with the internal team will allow the drivers to stay updated about what’s expected of them and what they should do next.

If there are any doubts, they can ask their team and avoid missteps and delays. This helps them perform the job role as efficiently as possible.

1. GPS

32% of GPS users in the fleet business report an increased ROI. Having a GPS displayed alongside their steering wheel allows drivers to stay on the most optimised route to reach their destination.

Make sure the GPS is connected to your in-house team so that they can update your drivers about real-time events such as traffic and weather. This helps them in choosing the most optimised routes at the moment. 

2. Fuel usage analytics

Allowing drivers access to information about their fuel usage allows them to understand their vehicles better. They can make informed decisions about how to use the vehicle to derive maximum output out of it.

5. Create a lifestyle plan for your fleet vehicles

A strategy that can prove to be game-changing in your fleet management is creating a lifestyle plan for each and every vehicle. This entails assessing every vehicle based on its previous and current performance and delegating its operations based on its capacity.

This strategy requires a bit of number crunching on your part, but it’s well worth the effort as it arms you with valuable knowledge about your fleet. More importantly, it allows you to get the most value out of every vehicle to ensure top-notch operations.

When you gather information about a vehicle’s performance, you can make better decisions about:

• Purchasing or leasing its parts

• When does it require repairs in its lifecycle

• If you should use the same model in your operations again

• Delegating its operations based on where it is in its life cycle: for example, older vehicles may be assigned shorter routers compared to newer vehicles. 

6. Prioritise safety

Something that goes a long way in ensuring success as a distribution startup is focusing on safety. On-road operations are the lifeblood of the industry and prioritising safety at every turn ensures that you run a long-standing business.

Train your drivers in safety protocols as soon as they join you, regardless of the experience they have. Train them regularly to keep their memory refreshed. This instils trust in both your drivers and customers about the safety of your operations.

Here are a few tips to ensure comprehensive safety of your fleet:

• Have an elaborate and quick plan ready in case of accidents to control damage instantly.

• Insure your fleet and drivers to make sure they’re protected at all times.

• Get safety certifications from authorities and display them proudly around your premises to let customers know about your commitment to them.  

Plan everything out and focus on optimisation to find success as a distribution startup

Any new business is faced with challenges in the competitive market of today, especially with businesses such as distribution that are always on the road. 

However, proper planning and a focus on optimisation can help you achieve success by helping you unlock your true potential and serve customers better. 

Use analytics to enhance the performance of your fleet. Invest in preventative maintenance to ensure top-notch performance. Plan the operations of every department to blend them together seamlessly. And provide your drivers with tools and support to help them perform at the best of their capabilities.

Choosing the right analytics tool for a new distribution company involves several key steps:

• Define needs and objectives: Understand what you need from the tool—such as improving operational efficiency, preventive maintenance checks, or monitoring inventory—and what business questions it must answer.

• Identify key features: Look for a tool that integrates seamlessly with existing systems, offers real-time analytics, is customizable, scalable, and has an intuitive user interface.

• Types of analytics: Decide if you need descriptive analytics for tracking past activities, predictive analytics for forecasting, or prescriptive analytics for optimization recommendations.

• Evaluate vendors: Consider the vendor’s reputation, customer support, security features, and the total cost of ownership of the tool.

• Demo and trials: Request demonstrations and trial periods to evaluate the tool’s functionality in real-world scenarios.

• Read reviews and seek references: Gather insights from reviews and check references from other companies that use the tool to gauge their satisfaction.

• Value over cost: Make your decision based on the overall value the tool provides in meeting your business goals, not just the price.

Assess your business needs, evaluate tool features, and consider user feedback in order to select an analytics tool that optimally supports your distribution company’s operations.