reducing logistics costs

In today’s competitive marketplace, companies throughout the supply chain industry are focusing on cutting down logistics costs. However, many companies do not know where to start or they begin cutting costs in unnecessary places. This is where NOTS Logistics comes in. As a third-party logistics (3PL) provider, we understand the complexity of the supply chain process and can help companies reduce costs in areas that count without sacrificing their efficiency.

• Optimize your workforce. In order to maximize your operation’s productivity and minimize its costs, you need to ensure that you are properly managing your labor force. Start with your training process. Evaluate how you are currently training employees, and make sure that your onboarding process is effective. Strategize manager-to-employee communication, making sure that managers are meeting with team members frequently, praising them for a job well done or providing recommendations on how to improve their performance. You can also consider employee incentive programs where individuals are rewarded for perfect attendance or recognized when they go the extra mile at work. Workforce optimization is a key component to reducing logistics costs as it streamlines day-to-day operations.

• Invest in modern technology. The saying “if it isn’t broke, don’t fix it” doesn’t apply to technology in your warehouse. In order to reduce costs overtime, you need to take a proactive approach in your warehouse’s equipment and technology. For example, a Warehouse Management System (WMS) will save your company time and money. At NOTS Logistics, our WMS provides clients with the technology to manage their entire supply chains with ease. The system’s features include asset tracking capabilities and inventory activity reports, so that distribution can be efficiently fulfilled, and losses can be prevented. With 24/7 access to customized data, your team can locate your inventory at all phases of the supply chain process. Other technology investments you could make to cut costs are: high-efficiency warehouse lighting, barcode systems, voice-enabling technology, etc.

• Consolidate shipments. Companies will smaller freight volumes typically use less-than-truckload (LTL) shipments. To reduce shipping costs, consider partnering with a 3PL provider, such as NOTS Logistics. We can consolidate shipments for you, significantly reducing your fees for shipping freight.

• Implement cross-docking. Cross-docking is a logistics procedure in which products are transported from the supplier or manufacturer directly to the customer. There is no need for storage and there is minimal handling of the product. In certain cases, the practice of cross-docking is an effective strategy in reducing storage costs, labor costs and transportation costs. Also, with the quick delivery to customers, customer satisfaction is increased, and it gives you a competitive advantage in the industry.

These are a few of the variety of tactics in which you can begin to cut costs throughout your supply chain process. At NOTS Logistics, we work with clients in a variety of industries, including tires, electronics, paint, agriculture, etc., to reduce their costs and increase productivity. We understand that each supply chain is unique, and we will work with directly with your team to customize a logistics plan that fits your company. Contact us today to get started