Practical Ways Businesses Can Lower Logistics Costs

You’re always on the lookout for ways to cut costs. Don’t discount one of the biggest sources of expenses—getting things from point A to point B and all points in-between! Looking at and adjusting your logistics can go a long way toward shaving down expenses. Running out of ideas? Here are a few practical ways businesses can lower logistics costs.

Work With Your Drivers

A lot has been said and done about monitoring drivers to ensure they aren’t making unnecessary stops, speeding, or otherwise wasting fuel. But are you making every effort to work with them and benefit from their experiences? Talk with your drivers about the best routes for their deliveries, traffic patterns, and how they can improve their efficiency while staying within the law and safety rules. Software and phone apps are available that can provide up-to-the-minute updates on changes in traffic flow. Keep the lines of communication open with drivers and work together to find the surest routes.

Keep Your Vehicles Running Smoothly

Is your fleet receiving regular checkups and oil and fluid changes? Are the tires being serviced on a scheduled basis and kept inflated to the proper levels? Are your drivers instructed on how to address easily fixed engine issues and other troubleshooting techniques, and are you ready to send out help when they need it most? It’s easy to think that a smoothly running car, van, or truck will last forever, but that’s simply not true. Keep your fleet in peak condition, and your vehicles will provide longer-lasting service.

Monitor the Way You Package Your Goods

Are your products arriving intact and ready to use, or are you experiencing high levels of spoilage and loss? Proper use of bulk stretch wrap, airbags, and other packing materials, as well as strapping and bracing techniques, can all help keep products safe and secure during transportation. Investigate whether you’re wasting packing materials or employing them inefficiently. When done right, you can create more space that allows you to send out more products in a single shipment while saving on packing materials. Ask your supplier for suggestions on getting the most out of the least amount of tape, stretch wrap, and so forth.

Ship More Less Often

Here’s the last of our practical ways businesses can lower logistics costs. Talk to your customers and get a better feeling for their needs and buying habits. Ask them if they’d be more interested in buying in bulk or setting up a regular shipment of goods rather than ordering products and materials haphazardly. Work out a way to offer free shipping or other perks if they order a certain amount in a time period that makes shipping less costly for you. Planning and budgeting in advance can help you project costs far down the line, and you build good momentum as well!