Logistics expenses are a significant part of the final cost of a product, hence the usefulness of turning to a specialist in logistics consulting who can help you implement or revise your strategies and tactics when it comes to your flows of goods and control your transport costs. Here are 5 professional tips to reduce your logistics costs.
1.Optimize your storage systems
Cargo storage costs businesses dearly: between the space that must be allocated to it, the price of the goods that need to be stored, and the numerous manipulations that it entails, storage represents a great deal of locked-in money as well as daily expenses. It is also essential to invest in an inventory management system that, in particular, lets you:
- anticipate orders in order to maintain sufficient minimum stock to avoid shortages
- arrange the storage space in such a way as to limit the number of manipulations.
2.Maximize the trailer
As much as possible, try to group shipments for the same delivery area so that a full truck can be loaded to its maximum capacity. If this proves impossible because you only have a few pallets to deliver to the area, opt for freight consolidation and ask your carrier to share their trailer with other clients.
3.Plan your logistics procedure with your partners
Discussing and communicating in real time with your suppliers, clients, and partners is essential for planning sales and shipments and implementing a logistics process time, but also for:
- saving substantial amounts of money by placing and shipping orders in batches
- adapting to avoid stock shortages
- using the rush shipping solution as little as possible
- controlling price variations
- avoiding wait times at both the pick-up site and the delivery site.
4.Opt for intermodality
Intermodal transport, which relies on at least two different modes of transport, is very often used in Canada. In each province, it lets you use the most appropriate and least expensive shipping method, which helps lower the transport bill. For example, in Québec, when the type of cargo lends itself to it, rail is preferred over any other mode of transport, because the price for rail is among the lowest.
5.Carry out a logistics audit
Like a quality audit, a logistics audit lets you carefully examine a company’s logistics system to identify any organizational dysfunctions, deal with them, and improve the company’s performance. Besides ensuring that the methods are optimized to serve the client with the best possible service, an audit makes sure that the implemented procedures and methods allow the costs associated with the transport of goods and their storage to be controlled. If necessary, corrective measures are taken.
Logistics is a matter for experts: If you’re not a specialist in the field, it’s best to entrust the organization of your shipments to a logistics consultant. In addition to saving you time so that you can focus on managing your organization, your consultant lets you benefit from carefully selected partner services at rates negotiated based on the volume of business assigned by all their clients. Thanks to the professionalism of the partners in the network, your shipments, including any storage time, will be organized optimally from the pick-up site to the delivery site, and this efficient management will also avoid many mistakes that are often very expensive to fix.