Logistics is the transportation of goods from one location to another. It’s something that everyone does, even sending a letter to a family member is a type of logistics. Of course, it’s companies that are most affected by logistics. They can spend thousands on shipping per year, even the smallest of savings can make a big difference to the bottom line.
That’s why you need to know the top methods of reducing transportation costs.
Start With Your Package
If you’re shipping something then you need to package it. This protects it during transport. But, you’ll save a lot of money by using custom boxes. These are designed to encase your product, protect it, and provide minimal additional space. In short, you won’t need additional packaging.
This approach can also ensure the package is smaller and lighter, both of which directly affect the cost of your transport.
You may be surprised to realize that one of the biggest logistic expenses for many companies is the cost of replacing damaged items. While your insurance company should cover the cost, it is often not worth claiming or difficult to prove fault. You don’t want to leave your customer hanging, that means you send a free replacement. This doubles the cost of transportation and seriously affects your bottom line.
Alongside improving the packaging, you should look at a temperature data logger. This is especially useful if you have temperature-sensitive products. Having the logger will help you know if the temperature range has been adhered to. It will also encourage the transportation company to look after your goods. At the same time, you’ll find it easier to assign blame, if necessary.
Computers can help you to streamline the transportation process. If you’re not already using them then it’s time you did. Take a look at your current logistics process, you are certain to find areas where the work is extremely repetitive and probably time-consuming. These are the areas that are ripe for automation.
It won’t just save you money, it will improve the transportation process. That’s good for you and your customers.
Use Different Couriers
It can be a lot of work setting up contracts with different courier services. But, you’ll find it is worth it. Different couriers have their own specialties and service arrangements. You can create contracts with several different couriers and simplify the transport process while reducing costs.
It’s also helpful if one courier has an issue, you’ll have a backup lined up.
Consider Your Warehouse Location
If you are shipping a lot of goods to the same destination you’ll want to start thinking about where your warehouse is situated. It’s possible to dramatically reduce your transportation costs by moving your warehouse closer to your main customer base. After all, why are you located where you are? It’s better to be nearer your customer base, it reduces costs and makes it easier to deal with queries.
The real secret to reducing transportation costs is simply being prepared to review the process regularly and be open to change.