What do you do if you want to cut transportation costs while maintaining high standards?

In theory optimization of the goods load and route planning are the key to better manage the transportation cost however it is complex when come to execution phase. Without great resource and the capable technology would cause a big challenge to deliver great results.

if you are atending your customer, you can optimize your expedition, saving delivery costs, by implementing cut off for shipment based on SKUs. It started with e-commerce people but can be apllied to B2B as well

Analyze transportation routes and schedules to identify inefficiencies and opportunities for optimization. Consider factors such as delivery frequency, vehicle capacity utilization, and fuel efficiency. Use route optimization software or algorithms to plan the most efficient routes, minimize empty miles, and reduce overall transportation costs. Consolidate shipments and coordinate deliveries to maximize efficiency and minimize transportation expenses.

Reducing transportation cost while keeping high standards from a shipper / cargo owner perspective mainly can be achieved by transport consolidation and increased vehicle utilization. Typically the effective route optimization is more in the field of the freight forwarders.

# Optimize Routes: # Utilize Technology: Invest in fleet management technology such as GPS tracking and vehicle diagnostics to monitor fuel efficiency, driver behavior, and vehicle maintenance needs. # Consolidate Shipments: Combine multiple shipments into fewer deliveries whenever possible to reduce the number of trips and transportation costs. # Negotiate Contracts: # Implement Just-in-Time Inventory: # Invest in Fuel-efficient Vehicles: # Train Drivers: Provide training to drivers on fuel-efficient driving techniques. # Consider Intermodal Transportation: Explore the use of intermodal transportation options # Evaluate Packaging: # Monitor and Analyze Expenses:

In my personal experience, technology investment in following areas can significantly arrest transportation costs: - Transport Management Systems - Real Time Shipment Visibility - Freight Rate Management - Contract Management - Transportation Analytics - Digital Documentation(e-Docs) - Yard Management & Dock Scheduling solutions

Using a transportation management system (most 3PL Logistics companies already have them) can provide you with solutions that account for speed-to-market, delivery precision, and cost altogether. Let technology do the "heavy lifting" for you!

Transportation management systems (TMS) and route optimization software can help streamline operations and cut expenses. These technologies offer real-time tracking, route planning, and optimization capabilities, enabling better decision-making and resource allocation. Furthermore, telematics devices may track vehicle performance, driver behavior, and fuel efficiency, resulting in additional cost savings.

Technology is a real time enabler for the operating team to take charge of the ground situation/ operational dynamics on one side, and giving visibility to hosts of control measures to the management/customer side. The flaws, if any are detected quick time and can be appropriately actioned. The MIS accuracy is increased big time enabling the team to focus on core activities integrating it with the customer deliverables.

Technology will give real time insight for optimizing loads, routes, cost, reducing manual errors, tracking of shipments and also save cost at back end by freeing resources and focusing on core jobs and last but not the least Customer Satisfaction.

Proper vehicle maintenance is critical for ensuring efficiency and minimizing unexpected failures. Scheduled maintenance checks help spot potential problems early on, avoiding expensive repairs and downtime. Companies can extend the life of their cars, enhance fuel efficiency, and reduce operational disruptions by maintaining them properly.

For fleet owners this is probably one of the most critical success factors as it keeps them in command of the service performance and thereby customer satisfaction due to hassle free services to them. As we know the cost of correction/ rectification is always much higher than the real cost of keepin the inventory in good and roadworthy conditions all the time. Further as the industry faces huge challenges on availability of drivers, it is all the more important that the run time of vehicles is increased with better upkeep of vehicles and reduction in idling times.

Totally agree on this one . Also would consider optimizing the fleet with fuel reducing aerodynamic side skirts , top kits and possible dynamic speed management devices....can reduce fuel significantly in the long run. Check out Transtex-LLC!

If we really want to save on periodic maintenance expenses, we must follow our experiences and the experience of our mechanical crew I will say something that may anger or ridicule some people, but it is the truth that I gained from my experience in saving expenses... We must follow our experiences, not follow... Maintenance books imposed by car sales and dealers . For example, agencies sell you cars with a specific maintenance booklet, such as changing the engine oil every 5,000 , If we change the engine oil at 30,000 the engine will not be affected at all, especially if it is The vehicle will be maintained for four or five years. I can reduce the cost of periodic maintenance by a quarter without an absolute impact on the vehicles

Regular maintenance is about identifying weaknesses and strengths of own equipment and setting targets strategically to eliminate weaknesses by priority as soon as reasonably possible. To achieve a high company wide standard the staff employed should be employed by their competence /experience in leading /innovating on a long term and balanced basis. Weakness and risk mitigation can normally only be based on a high value targeting system in hard and soft kpi areas. High communication and authenticity standards in leadership of diverse teams are one way to achieve this reasonably fast and sustainably.

Trained staff are always more motivated and in better control of every situation or exceptions. They become the key drivers of your vision and mission in every bit of activity they perform as their task. It helps in proper integration of the team, with all cross functions. The ownership at every stage is increased, leading to better collective performance.

Investing in employee training can result in increased productivity and safety, thus lowering expenses. Training programs can cover topics such as fuel-efficient driving, route optimization, and regulatory compliance. Well-trained employees are better prepared to face problems, make informed decisions, and keep operations running smoothly.

j'ai appris avec les années que construire un programme de formation avec les chauffeurs expérimentés, peut nous permettre de gagner du temps. Et parfois même de faire animer des causeries sécurités par les chauffeurs eux-mêmes, permets que le message soit audible par tous.

Training is our big chance to set up regular communication platform for innovation and improvement of the company as … nobody is perfect at start. With systematic training and a balanced team culture we are able coming closer and closer to what we might see as ?perfection‘. Both - online and live training options should be prepared to be able and address colleagues company wide or at least superregionally. While online trainings limit our time scope more up to 2 hours max., live sessions should be worth while their cost and can take days.

here in Brazil current service providers ask for rate increase every year. Despite of providing a good service, ongoing rate increase along years can put your provider far away from average market rates. Best practice for contract managemente is always publish an open BID before accepting rate increase

International trade has seen major change in recent years; in the past, logistics involved simply moving goods from one place to another. Today, the market demands comprehensive services and specific logistics processes, making Contract Logistics the ideal solution for companies wishing to monitor and manage their operations. So, with a Contract you will have comprehensive process from production to distribution at the final point of sale. This means that Contract Logistics is not simply the process of moving goods, but a far more comprehensive course of action that merges traditional logistics with supply chain management processes. The objective of contract logistics is to optimize the customer’s supply chain operations, reduce costs.

The answer lies in problem only. Do detailed analysis of cost by a walk over. Find solutions to reduce cost. Diversify and use fuel efficient methods including green ones. Training of team and upgrading technology with monitoring can do wonders.

Développer l'éco conduite, former le personnel peut faire augmenter la productivité des employés. inciter le personnel à s'engager pour l'amélioration continue.

If your transportation costs are related to supply chain, and focused on providing raw material and spare parts for your plant, you may also consider alging production forecast and let manufacturing and sales people onboard for better accuracy on projection, enableing you shipment orders optimization. urgent shipments of supplies is always a big cost related to attending production but can be avoided with a good forecast management

If you cut costs in transport other cost will go up. For example, Order in bigger loads so with less deliverys you save money. But you then have to store it so warehouse costs will go up. You could pay your drivers less but they will then leave and you'll end up with drivers less experianced who won't be as efficant as your experianced drivers. If you use an outside haulage company do you really want to go with the cheepest? There normaly the cheepest for a reason and is it worth the sacrifice?

To cut transportation costs while maintaining high standards, consider optimizing delivery routes to reduce mileage, utilizing fuel-efficient vehicles, negotiating bulk shipping rates, and leveraging technology like GPS tracking for efficiency. For instance, a logistics company may invest in electric vehicles for urban deliveries, negotiate contracts with reliable carriers for volume discounts, and implement route optimization software to minimize fuel consumption and delivery time.

Identify all of your costs. See what is unnecessary cost, costs that are not creating any values, and costs that are avoidable through improvements and adjustments. Hit all of those first as our focus. Secondly, if there are still costs needed to be cut away, then see the costs that are not involved or not directly involved in the quality of service, do some efficiencies steps in those areas.

If your transportation company faces changing customer demands, promptly assess the shifts, communicate openly with customers to understand their new requirements, and adjust your services and operations accordingly to ensure continued satisfaction and loyalty.