When it comes to the bottom line, the biggest priority for businesses is reducing costs. In a supply chain, there are many ways to save money while improving efficiency and optimizing operations. Below, four simple tips on maximizing profit without sacrificing value to your customers.
Automate your supplier relationships
When it comes to Supplier Relationship Management, automation of the process will transform your organization and reduce costs. From vetting suppliers to collaborating with them for consortium pricing, automation improves communication, builds trust, provides more data and controls and establishes long term, valuable relationships. Once your SRM is up and running through an automated process, all information can be viewed in one glance, streamlining the entire procurement process.
Further use of tactical technology
Since automation can give you that competitive edge, ensure your 3PL (third party logistics provider) is up to date with integrating their technologies. From ERP to WMS, IoT and tracking systems, connecting all these softwares will give your business greater control and traceability. ILC consultants know how to consolidate such diverse data, view it on a single interface, and look for ways to improve the efficiency of your organization.
Ideally, you would ship a full container load. But if you only have a few pallets or smaller amount to ship, consider consolidating shipments. This allows you to combine with other shipments heading to nearby the same destination as you. You only pay for the space that your shipment takes up, so you reduce your costs through preferred rates and also save time as you’re not waiting till you fill up a container. We can help you to speed up the process using our vast network of carriers and shippers.
Don’t need a huge warehouse year round? You can hire a 3PL’s warehouse space when needed during peak business times of the year. This allows you to transform your current fixed costs into variables so your business can take advantage of economies of scale, while only paying per use. Are your vehicles and facilities being underutilized? Proper management of allocation and delivery schedules will ensure they are in use the entire month instead of sitting idle for days.
ILC consultants can advise on how to manage your inbound and outbound logistics needs so that you operate more efficiently. We take advantage of automation and real time data to make strategic decisions that will help you reduce costs.