You're struggling with high logistics costs. How can strategic thinking help you reduce expenses?

Strategies for decreasing logistical expenses can range from streamlining inventory levels, revising smarter shipping networks, providing better processes, improving relationships between suppliers and third parties Improve Customer Satisfaction. ... Minimise Travel Times. ... Centralize Procurement. ... Consolidate Shipments. ... Focus On Informed Decision Making. ... Automate Warehouse and Logistics Processes. ... Outsource Logistics to a 3PL.

Strategic thinking can reduce high logistics costs through: 1. Optimize Routes: Plan efficient routes to cut fuel and travel time. 2. Consolidate Shipments: Combine shipments to lower costs. 3. Leverage Technology: Use software for tracking and management. 4. Negotiate with Carriers: Secure better rates through contracts. 5. Manage Inventory: Apply just-in-time (JIT) to reduce storage costs. 6. Outsource Logistics: Partner with 3PL providers for expertise. 7. Improve Packaging: Optimize packaging to cut shipping costs. 8. Network Optimization: Review and optimize your distribution network. 9. Sustainable Practices: Use eco-friendly measures for savings. 10. Data Analysis: Analyze data to identify cost-saving opportunities.

Analyze and strategically position warehouses closer to key markets to reduce transportation costs, Consolidate shipments to maximize load capacity, and minimize the number of trips, these actions will have a direct effect on the logistics cost.

With the ever increasing cost of fuel, and prices rising due to inflation owning a small fleet may be more cost effective than paying a third party to move your product. Start with doing a cost analysis and comparing the ownership/ leasing option versus what you pay the third party.

Just-In-Time (JIT), Implement JIT inventory practices to reduce holding costs and improve cash flow, and Optimize safety stock levels to prevent overstocking while ensuring customer demand is met.

En effet avec une méthode de flux tendus doublé d'un ERP, vous pouvez immédiatement déclencher la commande chez votre fournisseur et prévoir la demande de vos clients.

Negotiate for volume discounts with suppliers and carriers based on long-term contracts, Regularly review and engage in competitive bidding for transportation and logistics services to ensure the best rates.

I found in logistics that adoption of technology is slow. Many of the systems our out of date. Before you start any process automation you need to see where the bottle necks are. For example how is the team working and then look at small quick changes. Many logistics ops staff spend a lot of time fire fighting due to lack of data to clients. This is because there TMS is slow or complex to use. Identify how to cut 10 or 20 minutes per operator by improving a process. Small wins first then look for the big changes to processes. Make sure the data you’re giving to your client is automated which then stops calls and emails.

also, you can Identify and eliminate non-value-adding activities in your logistics processes and adopt a culture of continuous improvement to regularly assess and improve logistics processes.

Like going on vacation, the prices for everything go up and down based on your truckers' busy schedules. always pay attention to see when there are price hikes, what causes them, and if they can be avoided. Review continuously!