The transportation industry has taken a hit in the past couple of years — first pummeled by fuel costs, now endangered because of lack of product demand. Even though the economic forecast may be grim, this is a prime time to evaluate your current network to find wasted money and inefficiencies that may be hurting your customer service.
Delivery delays and poor packing and routing methods can all cost your company money.
The good news is that there are software solutions out there that can help you fix your problems with a minimal investment and lower your logistics and transportation costs by 8 to 15 percent.
“Transportation logistics accounts for about 20 percent of the product (cost),” says Min Shi, assistant professor in the department of management at California State University, Los Angeles. “Any savings will directly transfer to profits for the company. Technology is important when used correctly. Software helps eliminate errors by giving you a direct link between all businesses involved in the supply chain and your inventory. Monitoring inventory through your programs will significantly reduce the amount of stock you keep on hand and reduce the chance of business interruption.”
Software programs are available to assist companies from the time an order is placed through the successful delivery of the order. Many executives view their transportation department as a cost center, but through successful management, it can be another way to earn money.
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