Logistics plays an important role in the success and growth of any business.
Overview
Logistics plays an important role in the success and growth of any business.
Manufacturing and services companies require good logistics to transfer their products to customers on a timely basis. In modern terms, logistics basically refers to the study of flow of people, information, goods and other resources in an organization, thus providing an in-depth analysis of how the right items can be prepared and supplied at the right place, at the right time. Therefore, even if your business does not involve manufacturing, it can still benefit from well-organized logistics which helps lower customer waiting time, manage the business effectively and improve efficiency.
Efficient logistics and supply chain management help SMEs maintain lower costs and stay competitive in the market. However, the challenge lies in the fact that different logistics companies quote different prices for operations and procurement. It includes hidden costs, non-standardized quotes from vendors, lack of shipment updates and accurate tracking etc. This results in delay of shipment, thus causing loss of sales due to delayed deliveries. Therefore, it becomes very important to reduce logistics costs and optimize operational efficiency. So, let us loo at some of the ways in which SMEs can cut their logistics costs and gain maximum benefits:
1. Consolidation:
Although it is good to ship products in Full Container Loads (FCL) in order to reduce transportation costs, at times when you have smaller consignments, it is always better to consolidate shipments, to lower the logistics costs. You can simply combine your load with other suppliers who share the same destination, therefore making it a cost-effective solution.
2. Standardised and All-Inclusive Rates:
This story is from the September 2018 edition of Small Enterprise.
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This story is from the September 2018 edition of Small Enterprise.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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