5 ways to reduce logistic costs!
Logistic activities is a fast growing expense for shippers. In reality these expenses are easily reduced, for example by automatising 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 way 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. Assuming that you wish to reduce your logistic costs it is important to reduce your manual data entry. Manual data entry is extremely time consuming and the chance of incorrect entered data is very large. Do you have all data saved into one system? Then you are always ensured of using the correct data. This is because all systems, such as your ERP-system, can be linked and exchange data between them.
Tip 2: Minimise phone calls and e-mailing
Aside from manual data entry there are still a lot of phone calls and e-mails being send within the logistics industry. Research, done by the Dutch association of Professional Organizers, indicates that e-mails are a huge contributor to stress in the workplace. Of all respondents, 39 percent 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 mostly likely much more. According to 42 percent of the respondents it distracted them from their core tasks, the tasks that actually 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 opportune carrier to deliver the goods to your clients. In order to select the best carrier, the first step is to start comparing them. Compare carriers based on the correct criteria in order to make a choice which one is the 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 survives but the most adaptable”. The same vision is applied when we at Adaption, along with the client, take a look at the processes within their business. It is important to arrange your processes efficiently in order to be able to adapt to new market standards and changes in market demands. Thereafter expenses can be reduced or even prevented due to eliminating redundant activities. As a consequence employee have more time available to focus on the 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 prevent unnecessary delays. Using a Portal carriers, customers and suppliers can easily reserve timeslots for when they wish to deliver of pick up goods. Making peak loads in the warehouse a thing of the past because loading and unloading times are spreadout throughout the day.