Four ways to reduce logistics costs

General Article

Logistics activities can quickly drive up costs for shipping companies. To remain competitive in a global marketplace, logistics companies must deploy cutting-edge technologies that give them the competitive edge to stay ahead in both a global environment and a local market.

The global logistics automation market was estimated at $39.29 billion in 2018 and growth was estimated to reach $121.3 billion by 2027. In addition, more than 10% of US warehouses are already using automated systems.

Four ways to reduce logistics costs

Costs in a logistics company can easily be reduced through automation. Companies have the ability to automate common logistics processes to reduce costs, delivery times, and increase efficiency. Automated logistics seems to be the future in the logistics industry.

1. Reduce manual entry

Manually entering data into various systems is extremely time-consuming and a major source of error. Automating this system saves the company money, shortens data entry times, and greatly reduces the errors that can occur with manual data entry.

2. Continuous improvement

By streamlining the process and eliminating unnecessary procedures, the company can save time and increase efficiency. Companies need to be able to adapt to market changes and new market standards and trends. Improving processes will ensure that the processes remain efficient.

3. Compare carries

Transportation costs can run high. Therefore, it is important to compare various carriers using the correct criteria to ensure that business costs are kept to a minimum in this area.

4. Minimize phone calls and emails

Phone calls and emails are a major contributor to stress for logistics employees. Communication can be streamlined between carriers and shippers through web and customer portals. The portals ensure that data is easily exchanged between relevant parties and automatically placed in the correct place in the system.