Reducing transportation costs

Tuesday, June 25, 2019

The volatility of the transport market is due to the inevitable changes in the supply and demand of the sector, buyers and sellers. As in everything there are costs that are always fixed but in the variables is where you can make the change. Here are some methods to reduce transportation costs:

1. Digitize logistic processes of entry and exit.

The automation of manual processes reduces costs by streamlining operations, this in turn allows for better administration and better efficiencies, such as faster order processing and therefore saving time.

2. Become the main choice.

Nowadays, transporters can be selective about who they want to work with. Facilitating business with your company will improve relationships with your operator and help you obtain preferential rates.

3. Eliminate operational silos.

Silo is the inability to work efficiently. The connection of transportation operations with purchases and other systems eliminates barriers between departments and improves communication and collaboration. Digitize your shipping process completely by integrating with your ERP system to eliminate double data entry, which reduces administration time and speeds up shipment scheduling.

4. Use analytics to improve operations continuously.

Reviewing historical records and analysis trends can help uncover bottlenecks that can slow down processes and add costs.

5. Use a digital supply network.

Connect with your operators, suppliers and business partners through a digital network, which allows your company to encourage collaboration to share or consolidate loads and at the same time get visibility of what happens at each point.

6. Test new data sources.

Smart devices offer the potential to acquire a massive volume of relevant data about your supply chain. The difficult part is finding out how to link this flow of information about transport assets, climate or product containers with relevant transactions in the supply chain. Only then, can this data be raised to information that improves your visibility solutions and the value they provide.

7. Go out to bid more often.

To compensate for the limited capacity and increasing shipping costs, shippers should bid for new transportation contracts more than once a year to find the best rates and avoid possible interruptions due to transportation shortages.

In DICEX we seek to maintain a network of strategic partners in the field of transport in order to offer the best quality / price ratio as well as security through different technologies, always seeking the satisfaction of the final customer.