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How to keep expenses under control in a logistics operation?
Currently, companies in the logistics sector face various challenges due to the evolution of the market and the increase in the needs of customers looking for this type of services.
And one of the most important (or perhaps the main) challenges facing a logistics operator is to control and optimize operating expenses throughout the supply chain without affecting the quality of service.
At Amerisa Logistics we know that those responsible for a logistics operation face many variables to meet the needs of their customers in a timely manner at an optimal operating cost.
Therefore, it is essential to know perfectly which are the processes or elements with the greatest area of opportunity and at the time they are detected, the next step is to adjust and order those procedures to keep operating costs controlled and continue to represent an important ROI.
Due to the above we share with you some key points that, commonly, are the ones that have the greatest negative impact when taking out the profitability of the operation:
1.- Use of assets:
Getting the most out of your company’s assets is vitally important as this will avoid unnecessary expenses such as buying machinery and/or spaces that you do not require. Make a periodic assessment of your machinery and technology equipment to clearly identify what you need to invest in.
2.- Ignorance of the inventory:
Knowing the inventory in detail will help you quickly and efficiently identify the stock you have in storage and in transit. To achieve this, it is essential that the control is carried out from the moment you receive the product in the warehouse. This planning will prevent you from reverse logistics procedures.
3.- Internal operating procedures:
We know that logistics processes are exposed to human error, so it is key that you look for technological control tools, but the challenge will be to permeate it in all employees within your company and sustain the new work methodology.
4.- Design and distribution strategy:
To design intelligent distribution routes, it is necessary to carry out periodic monitoring to identify where the most important points are concentrated and the frequency of delivery of goods. This analysis will provide you with information to optimize distances, costs and service level.
5.- Reverse Logistics: The return of product generates double cost of receipt, triple cost of shipping, loss of sales and above all a significant discontent on the part of your customer. To avoid this it is essential that you perform a return analysis which can provide you with substantial information to identify the roots of this problem.
It is clear that keeping the costs of a logistics operation under control involves a lot of analysis and organization, and to achieve this, approaching a comprehensive logistics operator 3PL can be a viable solution to make expenses in supply chains more profitable.
A key factor to consider is the advantages of PL logistics, since by sharing expenses in a multi-client warehouse lower individual costs (rent, personnel, technology) can be obtained. And this, for small customers, can represent better tools for operation at the same cost, which leads to better control of your inventory in better facilities and with less human error.
In that
sense, Amerisa Logistics
has the experience, technology and human capacity to lead your company on a path of viable and above all sustained growth.
If you are looking for an ideal solution for your supply chain,
contact one of our consultants
and together we will be able to identify what you really need.
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