Logistics costs, including transportation and warehousing, can be up to 65% of the total cost of a product, but reducing these costs does not have to be difficult or expensive. By adopting smart strategies, you can save your business money and reduce carbon emissions at the same time, making it easier to meet sustainability goals. The companies like Prestige Logistics Group are offering affordable logistics solutions for fashion brands.
Here are five ways to reduce logistics costs on transportation.
1) Go Multimodal
Multimodal shipping is a method of transport that uses two or more different modes of transportation during a shipment. Multimodal shipping has become popular because it saves money and time compared with single-mode transport. When choosing an appropriate multimodal shipping option, take into account how many stops your shipment will make.
2) Think About Delivering Goods in Batches Instead of Singles
When your company uses a delivery service to ship products, you’re paying for each trip. It’s cost-effective in some scenarios, but if your order can be delivered in multiple shipments—or even better, in just one shipment—it can be far more efficient. Try asking your delivery service if they offer bulk pricing; if they don’t, consider doing business with one that does.
3) Invest In Technology
Automation has made huge leaps in recent years, and new advances are giving companies access to more efficient methods of moving products. Investing in robots and other technology solutions can help businesses reduce staffing costs, as well as time and energy spent completing tasks manually.
In addition, many employees prefer working alongside a robot because they’re less likely to get injured than when using outdated transportation methods like forklifts.
4) Think Locally First and Then Scale Globally
When you’re looking at any sort of supply chain, it’s important to think locally first. You don’t need a complicated system or anything—just make sure you have a local presence, if possible. For example, if you sell clothing, keep an inventory at your closest store.
If you sell food, keep some in stock at your restaurant. This way, if there is a rush on orders or something goes wrong with shipping, you can handle things yourself without having to worry about losing customers because they can’t get their product.
5) Think About Consolidation Before Segmentation
If you’re shipping several small packages, chances are good that it’s costing more in terms of logistics than if you were shipping one large package.
If your business can consolidate into fewer shipments a month, consider doing so. By using fewer carriers and consolidating freight for each shipment, you can reduce the cost per shipment by nearly 40%! This is an easy way to save money without sacrificing service.
Get Logistics Solutions For Fashion Brands, Look no further than Prestige Logistics Group
There’s a whole new world of cutting costs out there! The need for speed means that today’s fast fashion brands must do more with less. Are you interested in a company that offers logistics solutions for fashion brands? If so, Prestige Logistics Group is the right company for you. They specialize in fashion brands, but we can work with fashion brands worldwide.
