Logistics costs are an important component of total cost in any organization. Focus needs to renegotiate freight and shipping rates, reducing the total transport costs and streamlining operations.There are six best practices that are followed by most companies to cut costs.
New carrier: verify Constant market rate is a proven method. In general, logistics managers get in a comfort zone with the existing carriers. This leads to creep costs. MarketCheck rates on other economic activities brings light. New carriers can more flexibly to their quotes.
Freight costs: There are several ways to optimize the freight costs. Renegotiation of the minimum payroll to a minimum for a zone must be explored. Product Delivery Coordination is another useful tool to streamline the freight costs. Today both the USPS and Canada Post to offer viable options for small packages. Agreements with a number of smaller, local carriers offer some sthe best price / best service possible combination. Internet provides excellent tools for the comparison and optimization of freight
Improve shipping and receiving: streamlining shipping and receiving practices will offer significant savings. This can be done by reducing the time window for the reception. The starting point should be commissioning delivery dates. A flow chart of all the measures must be taken unnecessary processes to identify and combine existing processes.
Technology: InternetTools provide significant reduction in paperwork. The documents are scanned and e-mail inches to reach ports, etc. In the case of cross border trade, it must file least twenty-four hours in advance to avoid delays at the border. Technology also enables the coordination of all programs to optimize the store.
Managing back: Reverse logistics is an important part of the freight. Most companies offer a liberal policy there. If the customer is not satisfied with the productcan be in 30, back 60, 90 days, depending on the manufacturer. At times, the seller also gives lift to get it. In order to minimize the costs associated with reverse logistics processes must be streamlined.
Audit of freight: Use specialized agencies to provide post payment audit of freight bills. These agencies are typically paid on a profit-sharing. These tests also provide valuable insights into different patterns and cost reduction opportunities.
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