4 Ways to Reduce Your Logistics Costs and Increase Efficiency

Logistics-related costs and managing your supply chain can often be a headache for many business owners. However, as it is one of the key variables that impacts your bottom line and how your business runs, it’s important to know which areas you can cut corners on and which areas to invest in to streamline your logistics needs. As the industry continues to evolve rapidly, along with impacts of restrictions due to COVID-19, the costs and management of your supply chain may be constantly changing. We recommend keeping the following 4 points in mind when thinking of ways to be more cost-effective and efficient with your supply chain. 

1. Get clear on your business needs

All businesses are unique, and therefore your needs, expectations and logistics solutions must be tailored to suit. You minimise the risk of unexpected costs, be clear with your prospective logistics provider/s about:

• Delivery times and demands

• Growth and scalability options

• Technology and systems (e.g. Warehouse Management Systems)

• Goods security, insurance and liability

• Sustainability solutions

Once you have a clear idea on the aspects that are of high importance to your business, it will help to align your business with a logistics provider who can best suit your needs.

2. Work with reputable providers

It may be tempting to cut corners on logistics costs by choosing the ‘cheapest’ option when deciding between logistics providers, however the $50 saved on one distribution cost may end up costing your business more in the long run, such as through wasted time, added stress, poor communication, poor quality management, and unreliability. In the long run, it’s more cost-effective to choose an established industry leader. Consider the following when choosing a reputable logistics provider:

• Offers standardized services

• Industry certifications, accreditations and memberships (ISO, BRC)

• How long have they been in business?

• Do they work with reputable industry partners?

• Do they offer services to streamline your end to end supply chain?

• What are their insurance and liability clauses?

• Do they have strong references and reviews from their customers and clients?

3. Keep up with industry trends

Industry trends in the logistics space are constantly evolving and adapting to the latest technology and consumer habits. Even small changes can impact the costs of your shipping and distribution. Staying informed of industry trends will allow your business to make the most cost-effective decisions as systems evolve and as your customers’ priorities change.

4. Consolidate your end-to-end supply chain 

An end-to-end supply chain is one of the most cost-effective and streamlined ways to improve the efficiency and success of your business. An end-to-end supply chain will assure that as a business owner, you can focus on performance and customer satisfaction while managing your production, storage and distribution of your goods all in one place, with a full overview of the process. 

An added benefit to an end-to-end supply chain is that if delays or issues occur in any stage of the process, it can be resolved as quickly as possible with as little disruption and financial costs, and minimal middle-man communication.

For more information on how the Willmotts Transport team can help streamline your business’ logistics needs, get in touch to have your questions answered and receive a tailored quote, here.