Ineffective logistics strategies and poor planning and decision making often inevitably lead to increased expenses, damaged goods and missed deadlines for delivery. Thus, maximizing operational efficiency and optimizing logistics costs is a crucial aspect of every business. In fact, any business doing a lot of shipping and hoping to remain profitable should make these among its top priorities. Companies must rely on smart logistics management practices to meet today’s high customer expectations and survive in a volatile global business environment. Here are 5 tips that would help reduce your logistics cost.
1. Ship goods in consolidation
Shipments in FCL (full container loads) are safer and more cost-effective than those in LCL (less than a container load). This is because your goods would be loaded as per your requirements without having to share the space with another vendor. However, there are instances when LCL might be a more cost-effective solution, such as in cases of shipping small items. You can reduce your costs by consolidating your shipments whenever possible. This is done by combining multiple small shipments from various suppliers into one single shipment provided that they share the same destination.
2. Get insurance
If you don’t properly insure your cargo, logistics planning and cost-saving strategies will not be of much use. Make sure that the insurance covers the entire value of your products to avoid unwanted hassles.
3. Maintain an integrated platform throughout your business
The integration of supply chain operations into a single platform and its accessibility to all concerned parties is of utmost importance. This would result in the prevention of duplicate activities, save time, reduce errors and improve efficiency.
4. Maintain your supply chain visibility
Although it is impossible to forecast or prevent logistical delays, adequate supply chain visibility will provide managers with insight into potential areas of concern. Logistics managers and finance executives may get the most up-to-date and necessary information by using real-time dashboards that automatically update data.
5. Partner with the right agency
Picking the right logistics company to outsource operations can greatly reduce your costs, boost your efficiency, and leave you with more time to focus on other important aspects of your business that require your direct supervision.
Air Sea Logistics can help you with the last point above. As the leading logistics and transportation services provider, we offer the most competitive rates and take pride in our stellar record.