5 Strategies to Reduce Your Transport Costs
Article Plan:
- The Power of Visibility
- Strategic Storage – The Key Factor
- Adopt Incoterms
- The Strength of Grouping
- The Magic of Comparison Tools
Have you ever wondered how some successful companies manage to control their transport expenses? If rising transport costs concern you, you are in the right place.
I am Nassiba, CEO and co-founder of LogisTiqa. Today, I am delighted to present five strategies designed to significantly reduce your transport costs and improve your profitability.
1. The Power of Visibility:
Everything starts with a deep understanding of your operations. To achieve significant savings, it is essential to have a clear view of your product flows. Know where your products come from and where they are going. Volumes, frequencies, and every point of contact are essential. For example, when you have several shipments coming from different suppliers, knowing each step can highlight unexpected cost-saving opportunities.
2. Strategic Storage – The Key Factor:
After mastering your product flows, think about how storage could play a crucial role. Introducing strategic storage points can be transformative. The idea is simple: transport larger volumes at reduced costs to a central point, then rely on last-mile providers for fast deliveries. For companies handling international shipments, well-located storage can significantly reduce transport expenses.
3. Adopt Incoterms:
The dynamics of Incoterms offer much more than they seem. By reshaping payment terms with your customers, you open the door to win-win scenarios. The key point? By adjusting Incoterms, you can not only reduce transport costs but also gain better control over your shipments. For example, for one of our clients who was shipping goods from Morocco to the United States, we changed the Incoterms. By choosing an Incoterm stating that the final customer would collect the goods at the airport instead of at their home, we managed to reduce transport costs by 40%.
4. The Strength of Grouping:
There is undeniable power in numbers. Collaborative efforts and effective grouping can be the key to unlocking significant savings. But a word of caution: it is essential to do things properly. At LogisTiqa, we offer specialized services that analyze your logistics flows, enabling safe and beneficial grouping. The advantage? This collective strength often translates into better negotiation power with carriers.
5. The Magic of Comparison Tools:
Finally, never underestimate the role of comparison tools. At LogisTiqa, although we do not classify ourselves as a conventional comparison platform, our expertise lies in route optimization. Our mission is to find the perfect carrier tailored to your needs. The objective is to ensure that all parties involved get the best fit for their requirements. Remember, the best choice for one may not suit another. Regularly comparing rates and services can lead you to the most economical and reliable option for your specific needs.
Conclusion:
The path to optimized logistics and reduced transport costs may seem intimidating, but with the right strategies, transformation is not only achievable, but also profitable. I hope these strategies have highlighted paths you had not previously considered. Remember, every step toward optimization is a step toward greater profitability. And always know that the LogisTiqa family is here, ready to guide and support you at every step. To smarter logistics and greater profits!