Shipping and warehousing costs form a big part of the main expenses for companies trying to sell their goods and services locally and internationally. Reducing costs associated with logistics is often a top priority for eCommerce businesses. Let’s look at the various ways of optimizing inventory levels, finding better shipping networks, and creating better processes to reduce logistic costs.
TIP FOR SAVING MONEY ON SHIPPING AND WAREHOUSING
There are best practices to help you minimize shipping and warehouse costs. Here are some tips for saving money on shipping and warehousing.
Implement Streamlined Processes For Your Logistics – More streamlined processes in warehousing can help reduce costs. It helps to save valuable time and resources on operational duties and ensures items flow directly from the supplier to the customer. Implementing well-streamlined processes reduces material handling costs and helps the company save time and money on labor, product management, storage, and delivery.
Automate Repetitive Structured Tasks – Companies can reduce shipping and warehousing costs and create a more proactive approach to customer satisfaction by regulating and automating repetitive tasks. Optimizing the manual processes helps to can reduce staff requirements and shipping errors. Smart-warehousing and centralized operations can help to control costs. With automated, cost-effective warehousing and order fulfillment systems, a company can implement strategic changes on inventory visibility, cost reduction, and better customer service.
Keep Track of Your Inventory – Ensure you’re not stocking too much inventory. Keep track of your inventory levels to prevent overstocking and the high cost of holding goods. Get an Inventory Management system to automatically provide you with up-to-date information about your business to enable you to make quick and strategic decisions to avoid overstocking items that aren’t selling. Look out for an inventory management system that will allow you to track sales and inventory movements in real-time so you can automatically re-order stock when you need them.
Centralize Your Distribution – Having a centralized distribution center in one logistics hub will help to reduce the cost, complexity, and logistics challenges. It makes inventory management simple and less complicated as you’ll not need to manage and ship stock between warehouses around the globe. Having a distribution center in one location will help you handle shipments and deliver quickly and cost-effectively.
Collaborate and Partner With Suppliers. Collaborating and partnering with suppliers is one of the effective ways to reduce logistics costs. It enables buying logistics supplies like fuel in more quantities at a reduced price. Suppliers can absorb some logistics costs through efficient partnership and collaboration. Collaborating with suppliers who’re specialists in their field of expertise brings more creativity and an overall cost reduction in logistics.
Integrate Data From Sales and Fulfillment Systems. Integrating data from sales and inventory will help you make better decisions on allocating available products to your current orders. Work with logistic companies with the experience and resources to integrate data from multiple systems to facilitate decision-making processes. It helps to reduce logistics costs by helping you make informed decisions on shipping and warehousing based on customer priority.
Final Thought
A blend of storage and order fulfillment can help to save cost logistics costs and take care of customers’ demand for fast delivery. At Kelowna Cross Dock, we help businesses manage inventory and deliver goods on time. Our order fulfillment centers run on the latest technology for warehouse management.