Controlling costs is one of your primary objectives – but how can you do that without cutting quality, too? These seven tips can help you cut logistics and supply chain costs to keep your profit margins healthy.
7 Tips to Saving Money on Logistics & Supply Chain Management
Many issues play a role in logistics and supply chain costs, including fuel prices, trade laws between nations and security measures that increase warehousing costs. However, you don’t have to let those costs send yours through the roof. Use these seven tips to help cut costs for your firm, starting now.
1. Consolidate Shipments
Put goods from the same country into consolidated shipments to save on separate shipping costs. You may even be able to find other importers to partner with and share your less-than-container loads to obtain full container load rates.
2. Skip Carrier’s Insurance When Possible
Carrier’s insurance is known for its high costs, but you may be able to forego it in some circumstances. If your current insurance covers shipment of goods, you can most likely skip carrier’s insurance – but check your policy first.
3. Eliminate Variables in Transit Times
When you can’t predict where your freight will be and when it’ll be there, you’re more likely to build up more inventory, order more than you need and use premium services. Eliminating variables lets you plan accordingly so you’re not throwing away money.
4. Strategically Work Through Tariffs
NAFTA and other trade programs are in place to be used – and by strategically manufacturing or sourcing products that allow you to take advantage of certain duty rates and eligibility for big trade programs, you can save a tremendous amount when it comes to logistics and supply chain costs.
5. Calculate Costs Carefully (Especially Express Shipping)
It’s not uncommon for companies to use express shipping when there’s a supply chain issue, but that can be a costly mistake. Taking the time to identify which goods need to arrive sooner rather than later, and then only using express shipping for the most pressing needs can save your company a significant amount of money.
6. Automate Compliance Processes
Automating document preparation and other tasks help eliminate errors and save a tremendous amount of time. In many cases, errors hold up shipments at border crossings and bring the process to a grinding halt – but using a software solution that helps ensure compliance can help avoid issues that cost you money.
7. Find the Best Mode of Delivery
Many companies don’t check movement rates from more than one carrier or through different modes of transportation. A little price-comparison shopping can go a long way in cutting logistics and supply chain costs – and you should always check trucking as a possible option.
Do You Need Help Cutting Costs?
BR Williams can help you cut logistics and supply chain costs. Call us at 256-831-5580 or request a quote for trucking and logistics or distribution and warehousing today.
About BR Williams Trucking & Logistics
BR Williams is a 62-year-old, family-owned Trucking, Warehousing, Fulfillment & Logistics Company. We specialize in removing the supply chain frustrations our customers have by developing custom-made solutions. We offer nationwide transportation services through our fleet and logistics division. Our six fulfillment and distribution centers are located in the Southeast and span over 1.7 million square feet. Our core values are Honesty, Integrity, Service. We still serve our first customer that was established in 1958.