5 Tips to Reduce Logistics Cost 

All of us want reduced logistics cost and there are numerous ways to do it. The methods of reducing logistics cost can range from creating better processes to improving supplier relationships and so on. Here are 5 tips from us to help you reduce the logistics cost. 

Organised Storage 

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Organisation reduces freight rates and reduces damage.

You can start with identifying and eliminating open spaces in an organised manner. It increases storage density by utilising the available floor space. It also decreases freight cost and reduces damage. Execution of this simple tip drives the following benefits:
1) Efficiency

2) Asset Utilization

3) Accuracy

Safety Stock 

 

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Safety stocks save your money, time and relationships.

 
Yes, that’s right! We know that carrying safety stock sometimes increase one’s warehouse costs but when you consider the alternative and calculate how much money, time and relationships you can save this option seems fair. Execution of this simple tip drives the following benefits:
1) Better relationship with buyers

2) No noncompliance fees for undeliverable POs

3) Saving time and money by having backup options

Automation Is Important 

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Automation facilitates the much needed competitive advantage intoday’s world.

Automation facilitates the much needed competitive advantage in today’s world and has become a determining factor for the company’s growth. Logistics Automation has several benefits and we’ve listed some of them for you below:
1) Deeper insight and analysation

2) More choice and power 

3) Better customer service 

Accuracy And Visibility 

 

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Accuracy and transparency remain the two much-desired aspects in logistics.

One of the best ways to reduce logistics costs is by improving inventory accuracy and visibility throughout the supply chain. Inaccurate inventory data mask actual inventory which results in dissatisfied customers. Aside from lower inventory value and more satisfied customers, higher inventory accuracy can lead to improved performance in other logistics processes. Following are some of the benefits:

 
1) Faster processing 

2) Lower inventory carrying cost

3) Improved customer service 

Centralised Distribution 

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Centralised distribution results in cost efficiency and simple supply chain.

Having products in an unnecessarily high number of warehouses makes inventory management complicated. Instead, it is better to have one distribution centre in a major logistics hub that can service a very large area or possibly even the entire world from one location. Execution of this simple tip drives the following benefits:
1) Cost Efficiency 

2) Simple Supply Chain 

3) More Savings 

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