5 Ways to Slash Down Supply Chain Logistics Costs
Effective management of supply chain logistics helps improve overall efficiency of a business and can lead to savings in other areas. We will discuss 5 tips how businesses can cut down on supply chain logistics costs and drive revenue.
This is the key to reducing logistics costs. With the help of automation and optimization of the manual processes transportation companies can – minimize staff number, track the movement of goods, reduce energy use and provide unparalleled customer service at a reduced cost.
2. Keep a Track of Inventory
This is the most important and productive way of slashing costs. By keeping a track of their inventory, companies will avoid overstocking, thus reducing costs. Steps companies can take to manage inventory include – developing a tracking system that pinpoints which products sell faster and which ones take more time them, use inventory management software to get automatic updates
3. Eliminate the Bottlenecks in Supply Chain System
A regular review and analysis of the supply chain networks help companies to identify issues that are disrupting the workflow. Such disruptions ultimately add to the company cost. So, taking proactive measures in addressing them is essential. Strategies such as maintaining proper documents, revamping the network design help companies to save costs.
4. Think Lean
“Where there is no standard there can be no Kaizen.” – Taiichi Ohno, Toyota Executive and Father of Toyota Production System
Eliminating the processes that do not add value to the goods and service is a great way to reduce costs. To eliminate over-processing, companies need to focus on a standardized method of work. This can be achieved by creating Standard Operating Procedures or SOPs. This SOP is accessible to every team member. This SOP can also be incorporated into the Kaizen approach taken by the company. This will help eliminate waste, improve productivity and reduce costs.
5. Finding the Best Route
The route used to transport your goods from Point A to Point B can greatly affect your shipping costs. Businesses can discover better transportation routes with the help of advanced algorithms and strategic planning to reduce the duration and cost of shipments.
If you are planning to start your own logistics firm, then why don’t you consult the experts in this field like Linq Partners. We are one of the premiere logistics consulting firms. To know more about the services we offer, give us a call today at 800-913-5467.