How to reduce logistics costs?

When we talk about logistics and cost reduction, we mean  all strategic management from dispatch to the delivery of any product to the customer. 

All this is possible with certain techniques or tools that will help the company to achieve its objectives with reduced costs to improve its logistics and be more competitive.

Strategies to reduce logistics costs

Many logistics strategies are useful to reduce costs. However, here we bring you the best ones from the experts.

  • Improve order optimization

When there are fewer orders, logistics costs increase. For this, it is essential to consolidate weekly orders, volume and evaluate the types of transport if the goods to be shipped are few.

  • Mobile technology for supply chain management

The use of technology provides the operator with all the information he needs quickly, helps to track the location accurately and allows real-time tracking. It helps to improve the time when placing an order for the distribution center. This step significantly improves  the process.

  • Reduce waiting time

Having inventory that has no movement and is not being sold takes up valuable space. Managing the warehouse to adjust stock levels to ideal  quantities with appropriate software will help control excessive inventory buildup.

  • Reduce obsolete inventory 

Having inventory that has no movement and is not being sold takes up valuable space. Managing the warehouse to adjust stock levels to optimal quantities with appropriate software will help control excessive inventory buildup.

  • Good asset management

Remember to leverage the company’s potential and not allow expenses to increase. An inventory analysis allows you to identify available savings opportunities. Use your resources wisely to avoid paying for equipment and space you don’t need. 

Solve your logistics problems by working with a customs broker.

It is easy to think that if you carry out certain actions, you will reduce the logistics costs involved. But you also have to take into account that many of these activities exceed your tasks, i.e. you may not be able to follow them up properly. 

It is advisable to have a customs group in charge of supervising your operations and helping you to reduce logistics costs and in general, any problems that may arise. At NCH International Trade Services, as an international logistics company and customs group, we provide high-level logistics services and effective warehousing solutions based on your company’s needs.


Advantages of freight logistics

Logistics in the transportation of goods is one of the most important aspects for any company. While reviewing the costs  in the logistics process,  industries are favored by gaining competitive advantages.

  • Efficient delivery times

Time efficiency has proven to be one of the most important considerations for customers when choosing between various carriers.

  • Improved quality control

Efficient logistics management focuses on detection and prevention. Detecting any manufacturing or production problems prevents them from reaching the consumer and causing reputational problems.

  • Increased efficiency

Optimizing your company’s logistics can help improve overall revenue by saving losses and expenses.

Companies that adopt logistics measures to improve  their processes can save between 5 and 7 percent of their total revenue.

  • Maintaining demand

Companies gain more opportunities to continually create operational efficiencies, which results in satisfied customers and lowers the logistics cost per order by keeping it at lower levels. 

Advantages of the good logistics process

Among the most notable advantages of the good logistics process we have:

·         Visibility in the supply chain. Good logistics provides information on the improvement of processes in the supply chain.

·         Inventory security. Well-applied logistics provide inventory security and meet demand.

·         Optimal storage. This allows you to make the most of every square inch of your warehouse or warehouse. This way, money is not spent on renting other spaces.

·         Transport. This improves competitiveness, since offering good service increases customer loyalty.

·         Logistics and implementation. Using the best technology will reduce costs and increase productivity.

·         Measurement and feedback. They are indicators present in the good logistics provided by the movement of inventory.

NCH offers international trade at local, national and international level.

At NCH we have logistics solutions in different parts of the world. No matter where you are, what matters is that the goods are kept safe with different types of transportation such as air, sea and land transport. We have a warehousing management system for inventory (3PL). 

If you want to reduce your logistics costs and any operation in general, we provide security and solutions by applying the best technological tools proven with years of experience, achieving success in their operations.

Mantente al día con las tendencias logísticas y comerciales.

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