Ways To Reduce Costs in Logistics

Like any industry, logistics has its fair share of overhead costs. Every warehouse or distribution manager understands the processes and daily operations and their respective costs. Still, there are ways to reduce these costs and still guarantee the same level of efficiency. Read these ways to reduce costs in logistics to learn more.

Perform Preventative Maintenance on Transports

Logistics costs range from high to low, so every factor is important to consider when reducing overhead costs. This includes the status of the transport vehicles themselves. One way to reduce costs in logistics is to perform preventative maintenance. Preventative maintenance is when workers troubleshoot equipment before issues arise. This way, they constantly monitor and assess each equipment’s status for consistent performance when needed. Otherwise, breakdowns can backlog the system and cause delays and loss in revenue.

Automate Processes

Another way to reduce costs is to automate processes. Today, most of the roles in logistics are doable with automated services. Tracking shipments from the warehouse to the customer, identifying problems with transportation, and real-time warehouse inventory management are all some of the automated processes managers can implement into their logistics. From there, they will face fewer delays for faster reaction times and greater cost-efficient techniques.

Consolidate Shipments

A consolidated shipment means combining multiple less than truckload (LTL) shipments into one container. This is a highly effective strategy for saving time and money in logistics. Consolidated shipping allows distributors to optimize deliveries and other areas in supply chain management while reducing costs. Full-truckload shipping (FTL) adds more weight to transport loads, but it cuts a significant amount of time by eliminating the need for multiple deliveries.

Use Different Modes of Transportation

Still, one considerable way to reduce costs in logistics is to use different modes of transportation. Transportation flexibility can offset costs in unexpected areas. For instance, sea transport is less expensive than air but takes longer to deliver. Intermodal transportation can offer a better alternative than single mode. Combine two or more transportation techniques, such as rail and trucking, to optimize cost, delivery time, and efficiency in one expedited process.

Still, we at 18 Wheels manage all of that in our warehousing and distribution services. We base our services in the Pacific Northwest and Western Canada to provide all logistic-based applications, from cross-docking to warehouse storage to special delivery. As a 3PL service provider, we ensure the best technology to streamline your logistics operations, like scan guns, barcoding systems, and software platforms. Call us today to learn more about our services and how we can fulfill your warehousing or distribution needs.