One thing that most people come across in their logistical dealings is a massive cost index which seems unavoidable. These price raises can arrive from several factors that are often overlooked and never checked. If you, however, feel pity spending the extra buck, take a good look at seven tips to help you reduce international logistics costs. We have tried to cover all the basic things that you must note in detail. The rest, however, rests on your business intellect!
1. Air Transport Is Expensive and Undesirable for Cargo
Air transport is an expensive shipping option. A large bulk of logistics businesses prefer this mode of transport over others because it is quicker and enhances service. Here is what you must change. Ask for overland shipping options and offer it as the default method of shipping. If customers want the items super-fast, try the airplane, but for an extra cost that you need not spend upon.
2. Try Full Container Goods
If it is possible, try to ship the container only when it is full. Doing so is important because the cost of shipping a semi-empty container will be as much as shipping a filled container. If you manage to put in all the stuff, you will probably manage to spend much less in comparison.
3. Try The 40 Feet Container for Transportation
There are two options when it comes to choosing containers – the 40 feet one and the smaller 20 feet container. Though shipping the 40 feet container is more expensive, it fits in twice the amount of goods and is only 80% smaller than the 40 feet one. If you manage to fill in a 40 feet container, you will be saving big bucks.
4. Know Your Transit Options
If you cannot fly your freight, it is important to know the road-transit options. Using ships for different countries or even continents is a good way to get goods across, and so is trying to get them sent by trucks via road. Look for an company if you want a fleet of your own for deliveries beyond borders. Some firms partner with providers who then send their goods to the other side of land.
5. Get an Insurance for All Your Cargo
To prevent unforeseen loss of goods and subsequent money involved in the process, try to get an . If you have a contract manufacturer responsible for transit, they will file a claim upon any loss of cargo in transit. However, if you choose to handle logistics yourself, you will have to go through the tiresome process of a cargo insurance by your own.
6. Make Plans Well Ahead of Time
Organize your work properly. If you do not do so and end up with last minute puzzles to solve and critical deadlines approaching, you are most likely to spend more. Schedule your shipping and religiously follow the schedule. It is important to do so not just to cut costs, but also to ensure uniformity in the process. It is probable that you may miss out on something important to rush, and that would be disastrous.
7. Look After the Packaging Carefully
Smart packaging is important. You should talk to an expert to guide you on this. The right packaging keeps the space occupied by the article limited, while maintaining its value by keeping it secure from damage. Should you miss out on cost effective packaging, you will probably end up wasting space in the shipping container, allowing lesser articles and costing more.
Cutting costs is not difficult, it just takes the right amount of smartness to achieve it. Keeping some elementary commercial tricks in mind, you can make a big difference in profits. The bonus point is that with some of these changes, such as using fully loaded containers, ensuring better packing and more, you shall be helping the environment too! So, go ahead and reform the way you work – you will end up with stunning results.