The global pandemic has upended our lives in more ways than we would want to admit. And despite our best efforts to return to normalcy, we can’t claim to be out of the woods yet. For instance, global supply chains have taken a severe hit, with related costs skyrocketing. And as businesses feel the pinch, they need to explore ways to keep their logistics costs within manageable levels.
ArdentX Logistics Services is a go-to provider for many firms, and their team understands the pain most businesses are presently going through. To this end, they’ve prepared tips to help your business navigate the troubling waters. These pointers include:
1. Consolidating Your Shipments
It costs a lot to send out many small shipments. Why do so when you can easily consolidate them into fewer, bigger ones? This way, you save on transportation costs without reducing your customer base or output. And while at it, you can also take advantage of quantity discounts.
While we’re still broaching the subject, how are your delivery routes? Do most of your deliveries flow to a given location? If so, a rethink of your routes would suffice.
For instance, why not have a single truck make multiple deliveries to the same place at once? This would save you money and help you optimize your resources. Indeed, avoiding expensive practices can help you pull the plug on unnecessary expenditures.
2. Automating Your Processes
It’s common knowledge that automation simplifies various aspects of any business. Without automation, warehouse operations tend to be more error-prone, time-intensive, and costlier. Fortunately, you can find various applications to automate several warehouse tasks. Such software may help streamline:
- Packing processes
- Inventory management.
This reduces the number of man-hours required to complete a task. And by so doing, logistics or warehouse employees get to handle more work in less time. In short, automation improves productivity and helps keep costs low.
3. Teaming up with the Right Logistics Partner
The pandemic has brought about immense changes in the business world. As such, you need to ensure you’re working with a logistics provider who understands the changing landscape and can help you stay afloat.
The ideal provider also has a good understanding of your business, so they can develop creative solutions to address your pain points. And by finding and working with the right partner, you can reduce your logistics costs and enhance your customer service levels. By extension, this can improve your bottom line.
Case in point, working with a third-party logistics firm allows you to tap into their large network of resources. These include:
- Fulfillment centers
This way, you won’t have to invest in infrastructure, which would dent your finances. Instead, you can use the third-party provider’s resources at an agreed-upon rate. And this helps reduce your logistics costs. A logistic partner’s resources can also help you develop a cost-effective strategy for your business.
4. Reviewing Your Shipping Methods
Each shipping method has its benefits and drawbacks. Your goal is to match the most efficient shipping method with your product. Taking such an approach helps you avoid overspending on logistics.
For instance, airfreight may not be the best option if you’re shipping heavy and large products, as it’s usually more expensive than other shipping methods. The same applies to perishable items that need to reach their destination quickly.
In such a case, using a less expensive shipping method could cost you more in the long run if your products get damaged en route. That said, strike a balance between shipping speed and cost when choosing a shipping method to help reduce your logistics expenses.
5. Forecasting Product Demand
Picture this: You have a significant volume of products in your warehouse. But, the demand doesn’t seem to be keeping up with the supply. As such, the products sit in storage until they almost reach their sell-by date. Then, you have to either sell them at a discount or dispose of them. As you can see, inventory costs can rack up quickly.
Thus, a clear understanding of product demand can help you avoid situations where you either run out of stock or end up with too much inventory. This is where forecasting comes in.
Product demand forecasting uses historical sales data and market trends to estimate future sales. By getting your forecast right, you can avoid overstocking.
So, the more accurately you can forecast the demand for your products, the better your odds of staying on top of your operational costs. For instance, with the help of forecasting applications, you can predict which way demand is likely to swing. Thus, you can keep a lid on your logistics costs.
Truly, the pandemic has negatively impacted global trade, with businesses struggling to stay afloat. As a result, it has become even more critical for firms to find ways to lower their logistics costs. And making changes implies being adaptable. Only then can your business overcome the challenges it presently faces. And by heeding these pointers, you can develop a logistics strategy to see you through these tough times.