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5 signs that you are spending too much on delivery costs

Knut Fredrik Ramstad | 13. Mar 2019
4 minutes read

Adopting digital solutions allows you to manage your deliveries much more effectively. This in turn enables you to grow your business and maximise profits. But in order to make your bottom line as profitable as possible, you first need to take charge of your delivery costs. Easier said than done? Actually, not anymore. Next-generation delivery management software gives you full control over end-to-end delivery processes and costs.

Let’s take a closer look at 5 typical delivery cost factors – and how using state-of-the-art technology makes them far less costly.

 

1. Planning and management

Still using pen and paper or spreadsheets in your day-to-day workflow? Manual processes may be hurting your bottom line. Using email and phone to communicate with logistics providers and customers is time-consuming and costly. Start using next-generation delivery management software to assist you in these tasks, and get the control and visibility you desire and deserve. Digital logistics solutions take the effort out of planning and management, significantly influencing your ability to harness the other costs.

2. Shipment preparation

Paperwork and cargo handling activities at your warehouse or on your shop floor probably represent a substantial cost. However, with next-generation delivery management software in place – supported by techniques and technologies for identifying goods and packaging – a significant portion of your preparation processes can be automated.

 

3. On-hand inventory

Too much on-hand inventory increases your storage costs – and thus your cost of goods sold. Keeping track of inventory levels and analytics using next-generation warehouse management software is the best way to prevent overstocking. You should be able to make quick, strategic decisions about how much inventory to have on hand at any given time – with data, not hunches. As a result, you will reduce inventory cost.

 

4. Transportation

Do you have only one logistics service provider? It can cost you big.

The logistics and transportation industry is highly competitive. That’s why you should avoid vendor lock-in, by allowing yourself the freedom to choose from a wide range of logistics service providers. The proper delivery management software systems give you this flexibility. Plus, they provide you with a dashboard, enabling you to have full visibility over the complete process from shipment preparation to customer delivery.

In order to achieve these benefits, however, your LSP of choice needs to meet the following criterion: The ability and willingness to keep you digitally updated in real time about progress and cargo condition.

 

5. Waste

How much of your cargo is either damaged or for various reasons returned? Another factor eating into your bottom line...

Track and trace will fix this issue. In one real-world business case, cargo valued at 10% of a supplier’s revenue kept being returned on a regular basis. By properly managing the delivery process, this waste was eliminated. The best part? We have seen profits increased by no less than 10% of total revenue.

Are your profits stalling? Or perhaps your business is even bleeding money? Next-generation delivery management software is paving a path to profitability.

 

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