5 intelligent ways to cut down your logistics cost
Logistics and supply chain are the essential links of any business. Regardless of being a manufacturer, distributor, importer, retailer, or an e-commerce business, logistical issues are imminent. They may include order fulfillment, warehousing, material handling, e-commerce fulfillment or any other logistical aspect. It would be smart to find an optimized 3PL solution to cut down your distribution costs. For businesses small and large, any savings in revenues means being more competitive in the market.
There are various ways to cut down your logistics costs. Here are five intelligent ways to cut down your logistics costs and envelope a wholesome approach to cater for all kinds of businesses (small or big).
- JIT- Just in time management
With the introduction of better global communications, logistical grouping and faster means of delivery, the alternative concept “just in time” follows the minimalist approach. Leave it to your 3PL company to provide you with the resources you need just in time to fulfill your orders successfully. The concept calls for generating required logistics just in time to cancel out logistical costs incurred on procurement, maintenance, and inventory of such requirements.
All businesses have seasonal inventory fluctuations (especially e- commerce related businesses) for which the inventory levels drop to minimal for quite some time each year. Logistical costs like manpower and space hired outweigh the benefits acquired from such arrangements. Companies might have to pay for un-utilized storage spaces under such circumstances. A smart way to handle such situations is to collaborate with third party logistics providers who carry the requisite structures to handle your needs.
- Don’t outsource, insource
Let the experts handle it. After finding your collaborative partner, it’s time to let go. Let the experts join your team to review logistics, gather market feedback, and do the heavy lifting (no pun intended). Such partnerships will help you a great deal in reducing your logistical footprints and costs.
- Regionalized Partnerships can be most beneficial
Logistics are more about ground presence in most cases and it has more regional implications than global ones (for most operations). Benefiting from logistical resources of other regional players while offering from yours is a win-win situation for all. While you compete in some fields, you can cooperate with others to derive logistical benefits and reduce your costs.
- Power of analytics
This stands true for every business in the world. Investing a little in logistical analysis software will help in making successful business decisions using detailed data points.
https://sungistix.com/ is a smart 3PL fulfillment solution provider which can help you virtually in any logistical quagmire.