Simple Steps To Reduce Logistics Costs And Delays In Your Supply Chain
Being a logistics solutions company, we often face the issue of bearing unnecessary costs in different processes along with the trouble of accepting delays in our supply chain. We are not alone and every logistic services company crucially needs to take care of this every now and then. Even the solution is not something too difficult to achieve. All it needs is: Streamlining.
Poor logistics planning and decision making can result in excessive expenditures, missed delivery deadlines and damaged goods. This is why optimizing operational efficiency and reducing logistics costs are so important. In fact, they should be among the top priorities for any business that does a lot of shipping and hopes to remain financially viable.
Being one of the top Import and Export Agent in Delhi, we have to keep control over our logistics costs and deliver the best logistics solutions without delays. The simple steps we follow and would suggest are based on these three words: (1) Research, (2) Strategize,(3) Manage
Logistics Solutions: Simple steps for reducing Transportation Logistics Costs –
The three steps for getting over the unnecessary costs conducting a successful logistics solutions company are as follows:
Research In Detail About Every Touchpoint In Your Logistics Supply Chain –
Whether it is air freight, road transportation or sea freight– with the growth of e-commerce and huge imports and exports, it has become extremely necessary to research and improve every touchpoint of the logistics process. A logistic services company must be well aware of the circumstances that can affect the flow of the supply chain.
●Understanding the supply chain process
By definition, the logistics and supply chain process involves the movement of goods from the manufacturer to the client – or from raw material to end product.
More specifically, a supply chain refers to a complex system of activities, processes, resources and organizations dealing with the flow of goods and services from suppliers to consumers. Logistics is the flow of goods and services between the intermediary points in the supply chain in terms of transportation and storage.
●Optimized use of resources
Insufficient use of company assets, such as underutilized fleet vehicles, facilities or inventory, directly affects your revenue. By optimizing the utilization of your assets, including their status (owned or leased), you can greatly improve your business efficiency.
This can be done through rearrangement of the delivery schedules in order to keep the entire fleet of vehicles active throughout the day, as opposed to peak use of the entire fleet in the morning and idleness for the rest of the day.
Also, companies experiencing high business peaks at specific times of the year can rent additional warehouse space when needed. There’s no need to own a huge warehouse that remains underutilized for the majority of the year.
● Timely planning
The well-timed planning of operations such as production schedule, shipping routes, and transit time (from pick-up to delivery) is imperative. Hasty, last-minute choices and decisions will likely result in delays and missed deadlines, reflecting badly on both the company image and finances.
Smart planning should also take into account international holidays as factors in shipping schedules and delivery times.
To thrive in the Indian market and run alike of the best logistics company in across the globe, it is important to stay updated about the factors affecting logistics services. The factors may be social, political or any type of events taking place that may cause delays in your shipments and add additional costs. With proper research, such happenings can be avoided and the business flow can be maintained.
Strategize Your Shipments Well Ahead Coordinating With Your Clients –
The research is the first step in planning the eradication of delays and additional costs. But to use the research properly, it is important that you strategically plan freight schedules in accordance with the delaying events and your clients’ demands.
Calculate freight, duty, brokerage, and inventory carrying costs to support these lengthened supply chains. Also factor in such items as the costs of engineers flying overseas. Once you understand the true total landed cost and total impact to the business, that domestic buy may look a lot better.
If you have multiple suppliers in one country, consolidate their goods into one shipment. In addition, if you always have LCL (less than container load) shipments out of one country, try to find another LCL importer of goods from that country. You may be able to partner and consolidate to a more cost-effective FCL (full container load) shipment.
To become a well-performing Logistics company in India, you must be constantly analyzing the areas affecting the logistics and plan accordingly to help your customers in the best possible way. A logistics provider must always know that everyone delivers, but the best is one who delivers on time.
Manage consistent communication with everyone in the logistics supply chain –
When it comes to logistics, it is hugely important to maintain a dialogue with every person involved in the supply chain. Whether it is the manufacturer or supplier, or the freight forwarder, maintaining a consistent communication will help to reduce any chances of miscommunications and misunderstandings.
Provide to the decision-makers/customers of your logistics network the cost of freight for each service level, the reliability of each lane for each service level, and the true cost of carrying inventory so they can make informed decisions. People generally want to be good corporate citizens and will select the less expensive option that still meets their needs.
Being a logistics solutions provider, it is your responsibility to stay and keep everyone in the channel– well informed of the flow and timing of events related to the shipment. When the communication is managed properly, the shipments can be planned and delivered more accurately and as per the clients’ expectations.
When a shipment is thoroughly researched, planned and well-communicated, it can be executed at a more predictable budget and far fewer delays. If you are taking care of these three steps, there is barely a chance that you could miss anything to become a good logistics company.
Always remember that to deliver the best logistics solutions, it is important to Research, Strategize and Manage.