If your business relies heavily on transport and logistics, are you spending enough time looking at efficiency? There is always money to be saved, and by keeping on top of things you will reduce risk, increase your profits, and stay on top of your targets. In this guide, we’re going to take a look at several ways you can reduce your logistics costs, whatever your business.
Go Third Party
Your first option is simple but very effective. Third party logistic providers – or 3PLs – will bring a lot of expertise to the table and help you save costs – however big or small your business is. This is a great option because they take all the hard work away from you. That means you can concentrate on the most important tasks, such as getting new orders and making more sales. They’ll look at the cheapest and most efficient ways of getting your shipments from storage to sale. And, they are an instant partner with the vital experience you need.
You can save significant costs just by moving location. For example, if you serve the whole of the United States and use trucks or rail as your method of delivery, you have to be in a central location. Do you have an overseas market? Then choose a coast to set up near so it costs you less to transport your goods the docks. Location and networks are everything when it comes to logistics, and if you are miles away from anywhere, it’s going to cost you big bucks.
Fill Every Load
If you’re sending out half-filled trucks or containers, it’s a complete waste of money. Pack everything until it’s as full as possible to make sure that you aren’t throwing away your profits. The extra costs you pay for sending out partially-filled shipments all gets added to your cost of sale, so try and combine shipments if you need to. Hiring a logistics expert to come in and look at things could lead to some innovative ideas – so don’t be afraid to invest in a consultation.
Buy Your Own Fleet
Now, let’s not beat around the bush here. Buying your own fleet – whether vans, trucks or boats – is an expensive business. But, if you have the capital to plough in, your profits will see the benefits. You will have complete control over your delivery, and can even charge from other businesses that need to deliver to similar markets. But, you will need a lot of capital – and a long-term commitment. Take a look at these used MPP vessels for sale to see the kind of figures you need to think about. But, once you can break through and buy your own fleets, you can look into more global markets and expand to places you didn’t think possible.
OK, so there are out tips on saving logistics costs for your business. Not all of them will be for you right now, but there’s no reason you can’t aim to progress to achieve them. Good luck, and don’t forget – sorting out your logistics is a great way of turning small profit margins into enormous ones.