Logistics costs are a significant part of the final cost of a product. Hence the need to turn to specialists, logistics transport companies who can assist you in implementing or revising your strategies and tactics regarding your flow of goods and controlling your transport costs. Here are some professional tips to reduce your logistics costs.
I – Optimize your storage systems
The storage of goods is very expensive: between the space that it is necessary to allocate to it, the price of the goods that must be stored and the numerous manipulations that it generates, storage represents a lot of immobilized money, but also of daily expenses. It is therefore essential to invest in an inventory management system which allows in particular:
– Provide orders in order to keep a minimum stock sufficient to avoid shortages
– To have storage space so as to limit handling.
II – Maximize trailer space
If possible, try to group shipments from the same delivery area to load a full truck to its full capacity. If this is not possible, since you only have a few pallets to deliver to the area, opt for freight consolidation and ask your transporter to share his trailer with other customers.
III – Plan your logistics procedure with your partners
Exchanging and communicating in real time with your suppliers, customers and partners is essential to be able to predict sales and shipments and set up a logistics process time, but also to:
– achieve economies of scale by placing and shipping batch orders
– adapt in order to avoid stock-outs
– use the emergency shipment solution as little as possible
– control price variations
– avoid waiting times at the place of reception as at the place of delivery.
IV – Request your partner’s logistical audit
Like a quality audit, the logistics audit allows you to take a close look at the logistics system of a company in order to identify any organizational dysfunctions, if possible ask your logistics partner to deal with them or improve the performance of the company as part of your collaboration. In addition to ensuring that the means are optimized to serve the customer with the best possible service, we verify that the procedures and means put in place make it possible to control the costs related to the transportation of goods and their storage. If necessary, corrective measures are taken.
In short, logistics is a professional matter: if you do not have control over the matter, it is better to entrust the organization of your expeditions to a logistics professional. In addition to saving you time to devote yourself to managing your organization, your partner allows you to benefit from partnership services rigorously selected according to your needs and at negotiated rates based on the volume of business entrusted by all of its customers.
Thanks to the professionalism of the network partners, your shipments, possibly including storage time, will be optimally organized from the place of reception to the place of delivery and this efficient management will also avoid many errors which often cost a lot of money to catch up with. .
We can never say it enough, “time is money.”
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