5 Smart Ways to Optimize Logistics Costs of Your Organization

The logistics sector has advanced by leaps and bounds. The biggest proof of it, are the organizations that have transformed their intricate supply chains into simpler ones by deploying digital transformation tools, re-engineering processes and implementing analytics frameworks. However, these solutions are not enough when it comes to coping with complex and competitive logistics environment.
A perfect logistics solution is the one that combines technology, analytics, and processes so that logistic business owners can simplify networks, mitigate risks, and optimize the associated costs. Now that we have known that organizations have to cope with the pressure of optimizing costs without compromising on the performance, we wanted to share five ways in which they can handle it. So, here we go.

Keep Errors at Bay

When you have a huge logistics department, errors are likely to occur. However, they can cost a lot. For example, if the shipment becomes non-deliverable due to errors in data, the containers might face demurrage at ports. To keep these errors at bay along with the associated costs incurred, logistics leaders need to find out the reason behind these errors and bring improvements to the shipping processes. Try to choose a solution that helps you detect these issues and eliminate them.

Consolidate Shipments

Consolidating shipments is a great way to save costs. A lot of logistics owners sync the outbound and inbound transportation so that the containers can carry the maximum amount of shipments. Now, let’s say you are not able to achieve full load. During such cases, you can go for collaborative distribution. If an organization that is non-competitive goes through the same distribution center as your organization and delivers to the same retailers, collaborative distribution works the best.

Evaluate Value-Added Services

A lot of logistics providers offer value-added services, right from product labeling to product customization based on the instructions they get. Now, although several logistics experts prefer to outsource these tasks to logistics providers for convenience, it is important for them to assess whether it is worth it. There are other ways in which you can curb the costs, which include taking care of such tasks in-house or through a supplier in advance.

Handle Internal Collaborations

The internal cross-functional teams that work with other groups of the supply chain can be a good source of cost optimization. As a logistics business owner, you should be aware about the changes you need to make in demand planning so that you can take care of warehousing, manage labour capacities, and adjust the transportation schedules. An end-to-end logistics solution can help you handle these issues with intuitiveness and ease.

Educate Decision Makers

Last but not the least, as mentioned above, it is important to curb the costs internally. Which means, the logistics experts need to train the decision-makers and educate them about logistics trade-offs and expenditures. Also, they must understand the fact that if they want to save on logistics processes, they must compromise with the speed of delivery. They need to get to the bottom of actions that should not increase the logistics expenditure.

Concluding…

There are several ways to enhance supply chain processes and optimize costs. It includes everything right from creating better processes and optimizing the inventory levels to having a swift shipping network. Having a good professional relationship with third party suppliers can also help you save costs in the long run. 
At DiLX we craft end-to-end cloud-based solutions that help logistics business owners to manage inventory as well as shipping from a single platform. These solutions have dramatically reduced logistics costs for suppliers worldwide. Get more information about the services we provide to our customers worldwide. Drop an email to us on sales@dilx.co 



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