February 6, 2020

6 Tricks to Reduce Supply Chain Costs

In the logistics industry, we’re all looking for clever ways to cut costs and save. It can be difficult to do, since you never know what kind of curve balls might be hurtling your way. From traffic on highways to big rig breakdowns, having a wide variety of options to accommodate supply chain disruptions without wasting too much money is huge. Luckily, there are many tricks to cutting costs- all you need is a little bit of out-of-the-box thinking.

1. Make the most of the space you already have before dishing out on more warehouse storage. Start by taking an inventory of your equipment and supplies, then assess how much space you actually need to meet your needs.

2. The future of automation is here and it’s only going to grow. Have a professional stop by to do an analysis of your supply chain and recommend how you can automate the process.

3. Stay on top of customer demand. Customer patterns are always changing, so you need to stay ahead of the curve by regularly analyzing and tweaking practices based on orders.

4. Get yourself an inventory management system. Implementing this technology is a great way to optimize and save, allowing you to order and receive inventory as needed. In the long run, you end up paying less carrying fees and can get rid of excess inventory overhead.

5. Take a good look at every link in the chain. Sometimes it’s easy to miss a small detail that can be optimized to save. Ask yourself what can be improved and take the time to assess every link of the supply chain to eliminate and tweak weak links for success.

6. Take care with packaging. It may seem like one area that doesn’t need much attention, but quick, careless packaging leads to broken products and wasted money. Put emphasis on how to package to save space and use less materials.

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