The Need For Professional Transportation Logistics Management
Transportation logistics management is a complex and diverse field that only grows more so with each passing year. It has reached a point where it can only be handled by highly trained and educated professionals. The job itself focuses on planning, implementing, and controlling the flow of goods or services as well as storing those goods. It is often highly specialized for specific markets.
A transportation logistics manager must find ways to minimize the cost of transportation and logistics while also increasing the speed and efficiency of delivery. This is achieved using a variety of different methods that depend on the market in question. However, there are some general guidelines for reducing the cost of transportation logistics across most markets.
General Cost Reduction Procedures
Reducing the cost of transportation is often easier than reducing other costs related to logistics. However, it is often dependent on the availability of suppliers and their proximity. One of the best ways to reduce transportation costs in any industry is to reduce travel time by finding a closer supplier. Of course, this only works if there is a closer supply to choose from.
Travel time can also be reduced by reducing the volume of items shipped. Many businesses ship raw materials and then assemble those materials at the warehouse or factory. The volume can be reduced by shipping partially or fully assembled items. This will often require some negotiation with the supplier.
Many other savings can be had by negotiating with the supplier. For example, many are willing to offer certain discounts for reaching a particular volume of shipments. Combing high volume discounts with partially assembled shipments can equate to significant savings.
Reducing other logistical costs can be a bit more tricky. One commonly utilized technique is referred to as Just In Time(JIT) manufacturing. This requires items to be assembled on an as-needed basis, thus keeping as minimal stock as possible. Less stock requires less warehouse space and fewer man-hours to inventory and manage.
Costs can also be reduced by ordering parts already packaged for warehouse storage. This includes pre-labeled products. Those products will not need to be unpacked, labeled, and repacked once received at the warehouse.
When one of our Louisville Towing companies was able to cut cost on logistics. We took notice. When informing the shipper of upcoming times of arrival. This was time and fuel savings that were very impressive.
Pre-labeling and packaging products to work with a company’s inventory management system will also require some negotiation with suppliers. Having the products labeled or tagged with cross-compatible labels means that the supplier, factories, and warehouses can all use the same numbers to track the inventory. Overall, it can lead to a considerable saving in time, energy, and money.
Negotiations With The Help Of Professionals
Many of these potential savings boil down to the need to negotiate with suppliers. Supplier negotiations that are handled by towing logistics managers are more likely to deliver results. They will fully understand the logistical needs of the company, what sacrifices can be made, and what deals need to happen for money to be saved. Any company that is not working with a dedicated professional or working with a logistics management service is not reaching its full profit potential.