5 Ways to reduce Your Supply Chain Costs

Reducing your supply chain costs begins with monitoring the logistics of your management more closely. Millennium Logistics Management believes that a strong logistics process will provide savings and improve communications within your organization, between your organization and your vendors and most importantly between you and your customers.

We can analyze existing processes, from initiation of an order through fulfillment (which includes evaluation of modal selection, carrier utilization, and existing cost structures). Our knowledge and experience allows us to formulate a customized solution for your unique needs and in return save your company a great deal of money.

Naturally, there are many things to consider when it comes to supply chain costs but the following are 5 tips that can help you reduce your costs significantly:

• Informed decision-making. Educate the customers/decision-makers of your logistics network by providing the following: the cost of freight for each service level, the reliability of each lane for each service level, and the true cost of carrying inventory so they can make informed decisions. People commonly want to be good corporate citizens and will select the less expensive option that still meets their needs.

• Automate compliance processes. Implementing software solutions to automate trade compliance can speed the cycle times associated with tasks being performed manually (such as document preparation and eliminating associated errors). Automated compliance procedures also bring fewer delays at border crossings which results in on-time delivery and also increases customer satisfaction, promotes the avoidance of fines and provides adequate inventory levels.

• Method of Transportation: Planes, trains and automobiles. Which is the most economical? In general, rail is more profitable than trucking or air. Water is cheaper than air shipment. Regardless of the mode of delivery, always try to get three quotes for transportation.

• Control your express shipping costs. When supply chain complications arise, a company will often choose to have an entire shipment transported on an express or expedited service level (which means higher costs). Panicking usually results in increased costs therefore, to deter from this type of situation, a company can adjust by doing a little bit of calculating. By doing so, they can determine the amount of goods that needed immediately and have the amount sent using an express/expedited service, while the remainder of the shipment can be sent through a standard (lower cost) service.

• Consolidate. If you always have less-than-container load shipments, you may be able to partner with other LCL importers of goods and consolidate to a more cost-effective full-container-load shipment. Or, if you have multiple suppliers in one country, consolidate their goods into one shipment and you will certainly save on costs.

Millennium Logistics Management realizes that every client has different needs for their logistics operations, and being non-asset based, we maintain low overhead and exhibit flexibility in supply chain solutions. We can look at single aspects of your supply chain or the entire supplier network to help you manage the new processes, or even manage it for you. Find out how Millennium Logistics Management can help you reduce your supply chain costs.