As a transportation and logistics company, we offer supply chain consultation to maximize efficiency across your transportation network. We can help you optimize your routes and timelines to create a custom logistics plan that cuts down transportation costs. Here are some basic tips for cutting transportation costs:
A poorly-planned route can rack up additional costs quickly. Empty vehicles, unbalanced workloads, and drivers spending time stuck in traffic are all things that reduce the efficiency of a route. Fuel usage and overtime costs for drivers spending longer on the road than they should are top contributors to increased transportation expenses. A router planner can automate the planning process, factoring in traffic, weather, load capacities, and more.
Leverage Digital Processes
In today’s age of information, technology is instrumental in improving the way we work. Automating manual logistics processes streamlines operations, improves management, and increases efficiency. This not only gives your team time to focus on other tasks but can also reduce costs. Automation technology can be used to load and unload containers, manage warehouses, negotiate freight rates, and even reconcile invoices.
Using a digital supply network is another great way to use technology to your advantage. Connecting carriers, suppliers, and trading partners over the same network can increase communication and present more opportunities for collaboration.
In order to track your progress and improve your business, it’s important to collect data on all your processes. Reviewing historical records and analyzing trends can help you find issues contributing to added costs.
Ensure Regular Maintenance
If your vehicle breaks down, it can cost you over $750 every day it isn’t fixed. Proper maintenance helps keep vehicles in good condition, leading to decreased fuel consumption and energy loss. In fact, you may even want to consider using preventative maintenance to reduce logistics costs. Emergency maintenance due to unforeseen breakdowns can be expensive and dangerous.
Utilize Space Effectively
Are you making the most of your truck space when moving your freight? While sometimes a lighter shipment can result in cost savings, consolidation is also an effective way of cutting transportation costs. With consolidation, you’ll likely be making fewer trips. If your customers are looking for smaller shipments that happen frequently, consider offering an incentive for larger orders to ship more products less often.
Other ways to decrease costs on a per-load basis include reducing dunnage and making better use of available storage space. Bins and racks can improve the use of vertical space and even lower damage that may be caused by too much movement in the truck.