Logistical Management

Your MLM business is off to a great start, your week has been stellar and now you’re preparing for a few conferences next week. Is your business ready for a rush of orders? I see that puzzled look on your face; remember you only have mastered 1/10th of business management. OK, slowly put the coffee down on the coaster and think about everything you have learned. You know marketing, communication, recruiting, creating leads, generating conversions, human management and leadership.

Nice smile, yes you can sip on your delicious coffee but please do care not to spill on this next statement. What do you know about logistical management of your MLM business? I see a bit of a confusing but it’s ok, over 90% of global businesses use a specialist or a group of logistic specialists to handle raw materials coming into their factories and then shipping them out as finished products. How does this apply to me? Every business uses some form of physical product and they must have it shipped to them for their inventory. They in turn sell or give away this product to prospects or to other businesses by mail or other transportation service.

I run my MLM Business online and rarely use physical products! Even so if this is true, you are still using logistical management to run your MLM business. Your upline sends you electronic materials and you disburse this material in either text form, audio or video formats to your network by email or on a website. You control how much, when and what the prospect will order by the information that you provide and the methods that you offer to purchase said material. Your distributors will disburse any physical product on their websites, catalogs or onsite products to new prospects and to other interested parties.

Your MLM business logistical support is a two way street, you can sit there and not control any physical product but you must manage your time, send in orders, confirm payments, provide information to the buyers and access data from your upline on delivery of new materials and data for your website. Communication is number one in the exchange of information between you and your distributors. As you grow in business, you may spend more time communicating with your company on orders, back orders, transit issues, commissions and other business aspects. Your distributors will come to you for answers about late shipments, canceled orders, commissions, improper order or damage products and more.

Take a small break, we know this is a crash course but it is pretty simple to understand in motion. Think of it this way, if you shop online for candles or for shoes; the retailer confirms the order, payment, shipping, handles the product or ships from the warehouse, handles any internal problems, sends you any additional information regarding your purchase. Then they have to re order after a certain amount of orders to replace their inventories. This particular model can apply to the MLM industry that distributes physical products; while some individual owners may have physical stock on hand to help prevent a back log of orders to their prospects and members.

If you tend to have a physical inventory, you will have to anticipate warehouse capacity, seasonal ordering history, trends, future trends, current ordering history, develop a solid a delivery schedule from the company to your warehouse and other specialized topics. Other specific knowledge may include schedule deliveries from your warehouse to distributors and to individual buyers in a bulk fashion. Your inventory will have to managed for damage, stocking purposes, re stocking and natural events that can affect specific time tables, delivery formats, increase freight costs and other variable data that can be managed by a specialist.

This general crash course has provided an insight to two forms of logistical management. Either method will work and will take a serious commitment on your part to implement, troubleshoot and to adjust according to the past, current and future trends for your product. It sounds very difficult but a small network of suppliers is easily managed, especially if the product only comes from one or two suppliers and your company will handle their end on setting up their management, your goal is to keep the product moving forward and on time to your prospects and distributing networks.