For companies, reducing transportation costs has always been the number one priority. There are several ways to optimize transportation costs, improve the supply chain procedures and save money for businesses. Some of these efficient ways of reducing the transportation costs are,
1. Don’t rely on a single mode – Becoming flexible and adaptable while selecting the transport mode can help in reducing the transportation cost. Organizations should be aware of all possible transportation modes and respective costings to make cost-effective decisions.
2. Explore shipping consolidation opportunities – Use of proper judgment and different analysing techniques can be really helpful while deciding the consignment weights. Less-than-truckload can be an economical option for smaller consignments. Whereas the consolidation of all large shipments for a single buyer can save a lot of cash using full-load-shipment.
3. Use of automatic container loading system to reduce labour cost – Automatic container loading system is one of the best ways to reduce labour cost. It also helps to avoid product damage and save the cost of production.
4. Use preventive maintenance – Emergency or breakdown maintenance can sometimes become extremely painful. Therefore, preventive maintenance of the equipment in the transportation ecosystem is always an effective way of cutting logistic costs.
5. Make the best use of available storage space and increase storage density – An organization can save a lot of money by optimizing the use of available storage space. The storage density at the warehouse can be increased by using bins and racks, improving the use of available vertical space, etc.
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