As you know plenty, transport costs account for between 4% and 10% of your costs, whenever you want to optimize.
Lower costs of logistics do not mean you are optimizing logistics. It is true that you optimize logistics in price, but … What you do to reduce costs will have to be interesting to the user, but do not do it just because you are interested in you as a company. A company cheapest logistics or worse cardboard packing…
Savings are for example not only through the cheapest operator. Maybe you save more money regrouping routes. Or reviewing whether that customer who pays on delivery has a history of returns. At other times, these savings means developing its own computer system to help you sort your best to reduce your warehouse stock to the full.
Because the logistics not only has to do with sending the customer, also with shelves in your store, and receive products from your suppliers. At other times you will want to invest in a warehouse to regroup order to increase the average ticket. In other to send directly to your client from your provider without going through your hands. There is no single solution but many good practices. In other, lend a hand with other companies in your industry and share logistical expenses…
It may be that your 5,000 dollars increase in transportation costs translate into an increase in your efficiency of 30%. In the same way that save 10% or 15% in 12,000 kilometers 1,000 kilometers means save fuel, transport and human resources.
The best way to address the optimization of your logistics costs by passing yourself these seven questions:
- Is your packaging adapted to the needs of the shipping?
- Is there a formula where you can do it more efficiently? Can you, for example, modify the fringes of delivery for mass mailings or reunify routes of delivery?
- Can you renegotiate with your suppliers?
- Do you make too many express deliveries?
- Can you send directly from your suppliers?
- Is it possible to group shipments from different suppliers?