6 Tips for Cutting Costs

Nancy Anderson
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Reducing costs is almost always a good thing, and a reduction in logistics costs can allow a lower price to be passed to the customer, or simply can bring an increase in overall profit. Here are a few tips to reduce logistics costs that we have found from those in the business. Bringing as much of this type of knowledge to the job interview table can only better your chances of landing that desired position.

Supply chain bottlenecks can cost you time and money, but if you are able to properly identify and deal with them, you can save. Verify that you always have the proper documentations and are fully compliant with all required import and export requirements. You will want to also take a hard look at revamping your network design and vessel schedule planning to streamline where you can.

Very often, companies have excess stock due to a lack of supply chain visibility. Acquiring visibility software and gaining reliable information about future orders can greatly assist in reducing excess inventory.

Using new technology to connect electronically with brokers can help you become a self filler, which will reduce filling costs and entry errors. It also can help reduce the staff required to handle this area of logistics operations while still increasing your productivity.

Preferential trade agreements can save a substantial amount of money in duties and taxes. An improvement in compliance and data accuracy can be accomplished using a software system that automates the qualification process, which also saves additional time and effort.

Reducing cycle times, cutting supply chain execution costs, and having a better support compliance initiatives system can be achieved by putting a process-based workflow system in place. This system should include tracking and managing order acceptance, generating documents and shipments, and consolidate invoices. This process can also be extended out to the trading partners, and all together can greatly assist in controlling your procurement process.

There are many more tips that can be found from those with a history in the industry, and it is always a good idea to study and have a good amount of these things in your skill set. When you are applying for a position, and get asked what you bring to the company, you can mention a zeal for helping to reduce costs, and being able to lists some examples like these shows a sign of knowledge and desire to seek what is best for the company.

Jeff McCormack resides in Virginia Beach, VA. where he works as a web designer by day. In his off time he is a husband, father, mail order book store manager, and musician. Aside from being a freelance writer for this Logistics Jobsite blog, he also seeks to assist in career choices and information by contributing to other Nexxt blog sites.

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