How companies can reduce logistics transportation costs?

How companies can reduce logistics transportation costs?

Companies which rely on logistics transportation for their business, need to consider few important aspects to cut down their expenses. There are many reasons which cause huge costs of logistics transportation to companies. Few of them are lack of planning, lack of transparency, bad decision making in transportation and logistics may cause companies to increase their overall costs, fail delivery targets, result in damaged goods, and lose business ultimately.

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Here’s few important things that you need to consider for reducing the logistics costs :

Tie-up with good 3PL (Third party logistics solutions provider)

Companies such as Sendit which offer 3PL logistics solutions for businesses will play a crucial role in reducing the overall cost, increasing their efficiency and leveraging productivity. By using a good 3PL for your company, there are many benefits which is offered such as : leveraging resources and technology, optimization and consolidation, best practices for execution of processes, freight savings etc. Most companies doesn’t know have the expertise to handle the in-house logistics and transportation and they end-up with spending huge money for logistics. If you do not have the expertise in handling the logistics transportation, then it is advisable to tie-up with a 3PL logistics solutions provide who can reduce the overall cost, hassle-free moving goods and can help in figuring out which mode of transportation and which carrier is best for each particular shipment. By hiring a 3PL can benefit companies of all sizes and can focus on logistics and transportation management in a way that most companies fail to do it internally. The important value that 3PLs provide are :

  1. Strong hold on the marketplace, optimizing customer’s freight network, efficient and timely flow of freight transportation.

      2. Leveraging multiple carriers based on the requirements since 3PLs works with many carriers with economical prices.

      3. Providing best tracking solutions for carriers.

      4. Great flexibility that you can use the 3PL’s technological platform to manage your entire logistics for your company.

How companies can reduce logistics transportation costs?

Strategic consolidation of shipments

Shipment Consolidation (SCL) is a logistics strategy that combines two or more orders or shipments so that a larger quantity can be dispatched on the same vehicle to the same market region. They can combine small shipments from more than one company that need to go to the same destination. It is important to address the consolidation issues in a shipment and proper determination of how much to consolidate before shipping or how many time periods to consolidate before shipping the aggregate volume.

How companies can reduce logistics transportation costs?

Comparison of expenses and analysis

It is important for companies to check the criteria factors involved in their logistics transportation requirements to map out with the carrier service providers or 3PLs and analyze the best service at economical range. Sendit , the technology based logistics company offers a very economical and affordable prices for companies.

Measure carrier performance

Carrier performance analysis will help you understand the deliver-ability of the 3PLs and carrier shippers. There are many important metrics needs to considered for measuring the carrier performance, thereby reducing the overall cost to the company and increasing the efficiency of the supply side. By having clear metrics gives you a level of security and helps you manage the relationship with the third-party provider. Few important metrics such as :  Cost for inbound and outbound services, customer happiness metric such as on-time pickup and on-time delivery, transportation cost per shipment or order, invoice accuracy, and data availability.

How companies can reduce logistics transportation costs?

Control management of inventory

Companies often stock excess inventory because they lack supply chain visibility. To effectively reduce excess inventory, you have to gain reliable information on future orders. It is important to stock-up only the products which are at high demand and if not this will cost huge wastage with increasing overall cost to the company.


Gautham PasupuletiGautham Pasupuleti

Product Manager at

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