Is It Possible To Save Money On Your Logistics?
Effective business leaders tend to become adept at cutting costs in the long run, without causing a noticeable effect on the value they offer. So for example, negotiating better contracts with suppliers over time, or making use of economies of scale by buying in bulk are two good ways to achieve that.
However, it’s also true that some areas of business life are worth investing in properly, understanding that the cheapest outcome is not necessarily the best way to seek value. To use another example, sending your staff to effective, industry-standard training courses will not only ensure they feel inclined to stay with your company, lowering staff turnover, but allows them to immediately utilize those renewed skills in service of your enterprise.
But what about cutting costs in areas where even the idea of reducing your output or spending is seemingly impossible? Logistics seems to be an interesting target of this thought experiment. It’s not as if you can simply choose not to buy as much fuel as you need this year, for example, some costs are always going to be necessary.
In this post, we’ll discuss how to better save money on your logistics and what that may mean in the long run:
Robust High-Quality Maintenance
Of course, the maintenance of your vehicles will ensure they keep running for longer. This is why it’s good to work out a contract with local garages so your fleet can be serviced to a professional, verified and documented standard, but also, thanks to the business you provide that mechanics garage equipped to handle your vehicles, you can net a wider discount thanks to the amount of stops required. Garages are often very appreciative to take on these wider contracts – as a general rule. Of course, investing in the best replacement materials like truck tyres is also worth your time – because these can last longer and provide a better travel.
Refilling stations or private refueling and maintenance stations may require a membership fee in order to access and may service many logistics firms all day long. However, they can be a lifesaver in terms of keeping your vehicles on the road, in good condition, and in servicing your drivers should they need it. In some cases this can also help you make use of worthwhile subsidized programs, like red fuel exchange programs which help limit the impact on the environment and reduce initiatives, saving you more cost in the long run. These may or may not be available in your country or state – but they’re certainly worth researching.
Storage infrastructure is important to consider in more ways than one, not only in your warehouses but also within the architecture of the truck or van itself. When you can more easily stack goods in robust shelving units that spread the weight over the length of the loading area, you can carry more items and still retain roadworthiness. The same goes for sensitive goods that need to be carried in refrigerated units. Making sure these storage provisions are reliable and that loading staff have the proper loading tools to carefully but robustly implement these items helps your logistics save time, and will ensure a higher ‘yield’ per trip can be undertaken, saving money in the long run.
With this advice, you’re sure to save money on your logistics in a way that actually benefits your company.
Categories: Outside Contributors
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