5 ways to reduce logistic costs!
Logistic activities is a fast-growing expense for shippers. In reality, these expenses are effortlessly reduced, for example, by automating the most common logistic processes. For manufacturers, these are usually the expenses that come with outsourced transports, repeatedly e-mailing and time spend on the telephone, manual data input and inefficiencies surrounding dock-planning. In this blog, I shall provide 5 ways for shippers to reduce their logistic costs.
Tip 1: Reduce manual data entry
You and your colleagues probably spend a lot of time manually entering and processing data into several systems, or perhaps even documents such as Word or Excel. If you wish to reduce your logistic expenses, it is essential to reduce manual data entry. Manual data entry is time-consuming and, the chance of incorrectly entered data is substantial. Do you have all data saved into one system? Then you are always ensured of using the correct data. As all systems, such as your ERP system, can be linked and exchange data between them.
Tip 2: Reduce phone calls and e-mailing
Aside from manual data entry, there are still many phone calls and e-mails sent within the logistics industry. Research shows that e-mails are a huge contributor to stress in the workplace. Of all respondents, 39 % said that they spend an average of 1 to 2 hours a day processing their e-mails. For people working in the logistics industry, it is most likely much more. According to 42 % of the respondents, it distracted them from their core tasks that create value for the business.
Web portals prevent unnecessary phone calls and e-mails for logistic employees. Through the Carrier Portal and Customer Portal, shippers and carriers can efficiently communicate. Data is easily exchanged through the portal and automatically placed in the correct space within the system.
Tip 3: Always compare carriers
Another way to reduce your transportation costs is by selecting the most favourable carrier to deliver goods to your clients. When selecting a carrier, the first step is to start comparing. Compare carriers based on the correct criteria to choose the one most suited for the shipment.
Tip 4: Continuously improve your logistic processes
A well-known quote by Charles Darwin is: “It is not the strongest of species that survive but the most adaptable”. We apply that vision when we look at the processes within our client’s business. You need efficient processes to adapt to new market standards and changes in market demands. As a result, expenses are reduced or even prevented due to eliminating redundant activities. Employees also have more time to focus on core activities that add value to your business.
Tip 5: Make use of dock planning
The final tip to reduce your logistic costs is to make use of dock planning. Dock planning combined with timeslots prevents unnecessary delays. Using a Portal, carriers, customers and suppliers can easily reserve timeslots. They can then deliver or pick up goods in their chosen timeslot. Peak loads in the warehouse are a thing of the past because loading and unloading times spread out throughout the day.
Do you wish to put the tips mentioned above into use?
Adaption has developed the Transport Management System for shippers intending to reduce logistic costs and optimizing processes. Want to know more? Please feel free to contact us or have a look at our TMS page.