As we head into 2024, you may be thinking about the best ways to lower your costs for transportation and ensure that your logistics network is optimized.
Here are a few sure-fire tips below to get you started:
- Outsource your logistics operations to a 3PL. This move lets you focus on your core competencies and helps you reduce your transportation costs via the economies of scale a 3PL can offer. You’ll gain the flexibility to handle everything from small parcel delivery to large freight shipments to seasonal fluctuations and improve your reliability thanks to advanced tracking and monitoring. You’ll also get regular updates on shipments’ status and customized services to meet your specific requirements. With better network optimization and inventory management, you make better decisions about your transportation strategy and improve your overall efficiency.
- Look into transportation management software (TMS) or work with a 3PL that uses one. A TMS enables you to improve delivery times and reduce transportation costs. A TMS provides visibility into your transportation processes, helping to track your freight and to make better decisions on things like carrier selection, load optimization, and shipment consolidation. A TMS automates manual processes, manages contracts, secures capacity, and provides analytics for continuous improvement.
- Consolidate freight. Are you tired of running empty trucks? Empty miles occur when trucks or other transport vehicles travel without carrying a full load, which is inefficient and costly. To minimize empty miles and increase transportation efficiency, ensure that trucks are filled properly and not underloaded. Freight can be consolidated for shippers when their shipments are going to the same destination. When freight is consolidated, you minimize empty miles and increase transportation efficiency. However, freight consolidation can be complex and is best left to an experienced third-party logistics provider.
- Optimize your logistics network. Logistics network optimization is an ongoing process that adapts to changing market conditions, customer preferences, and business objectives. By continuously assessing and refining their supply chain networks, companies can improve their competitiveness, reduce costs, enhance customer service, and achieve sustainable growth. However, strategic network optimization is very complicated and time-consuming and best left for an experienced company to handle. Nexterus has expertise in this area, performing network design, logistics optimization, and inventory management for clients to help them create the most optimized network. Nexterus can help you determine the optimal number and location of warehouses, distribution centers, and production facilities to minimize transportation costs and meet demand efficiently.
- Gain visibility into your transportation processes. By gaining visibility into your transportation processes, companies can improve customer satisfaction and better meet fulfillment requirements. To gain visibility, companies can use tracking devices like GPS systems, ELD devices, and telematics. These tracking devices are essential tools for transportation and logistics companies to optimize operations, enhance safety, reduce costs, and provide better visibility into their supply chain.
There are many things that shippers can do to lower costs and improve efficiencies in their transportation operations. Using a TMS, consolidating loads, creating an optimized network, and more are just some of the ways to reduce costs and streamline operations. But most shippers need more time and the talent to do this themselves. Enter Nexterus. We will manage your entire transportation network including optimizing your supply chain network and managing freight bill audits and payments to uncover additional savings. We’ll oversee day-to-day operations, so you are freed up to focus on your core competencies instead of worrying about how to ship a load to a customer. Contact Nexterus today!