6 Pro Tips to Help You Reduce Logistics Costs

June, 2018

Customers love your products. They love your company. You consistently exceed sales goals month over month, but your profits aren’t growing as expected. Why?

For many companies, reducing logistics costs is at the top of their priority list to improve the bottom line. This is, of course, easier said than done. So, without further adieu, here are 6 pro tips to help you reduce logistics costs. 

1. Consolidated Shipments

Shipping full container loads (FCL) is the best way to save costs. However, there are times where you need to ship less than a container load (LCL). To reduce logistics costs, look to combine several smaller shipments from multiple suppliers sending products to the same destination into one consolidated shipment.

2. Preventative Maintenance

Saving money on equipment can be achieved through preventative maintenance. If a piece of equipment breaks down in the middle of a job, it can be costly. Man hours to fix the equipment, potential employee injuries, and customer service teams letting customers know there will be a delay in delivery. Make sure you have a process in place to regularly monitor equipment.

3. Automation

An automated transportation and logistics system can drastically reduce costs for organizations. By regulating, automating, and optimizing manual processes, you can achieve reductions in staff requirements, create proactive approaches to customer service, and centralize production operations to lower costs.

4. Proactive Planning

Planning operations such as shipping routes, total transit time, and production schedules can greatly lower overall logistics costs. Reactive, last-minute choices and decisions in these areas can result in missed deadlines and delays – especially during the holiday seasons. Make sure to be proactive in your planning.

5. Collaborate with Suppliers

Collaborating and partnering with suppliers can help to reduce and sometimes even absorb direct logistics costs. By creating a network of buyers to purchase necessary logistics supplies, like transportation fuel, you can get the fuel at a reduced cost by buying in greater quantities.

6. Improve Inventory Visibility in Your Supply Chain

Inventory accuracy will help to reduce costs. To achieve this, you need visibility into your supply chain. Without visibility, you run the risk of inaccurate inventory levels which can cause your organization to sell stock that isn’t there. The result? Increased costs for last minute shipping and decreased customer satisfaction. Invest in a system that will allow you to track inventory levels at all times.

Feeling Stressed by Logistics? Reduce Logistics Costs and Consider Outsourcing

If you have the time and resources, these 6 pro tips will help you reduce logistics costs. However, if you want to save time and money, partnering with a trusted logistics company like Boyd can be of great value to your organization.

With over 70 years of experience, Boyd has a vast network of trusted partners, knowledgeable freight and shipping professionals, and implements current industry best practices to save you time and money while you focus on what matters: growing your business.

Interested in having a free, no obligation strategy call with our team to discuss your storage and distribution needs? Fill out our contact form here and one of our logistics professionals will reach out to you.