Cutting Delivery Costs for 2014: 6 Big Ideas

bigstock-Transportation-trucks-in-freig-44819200Is cutting costs high on your list for 2014? Are you working on technologies to reduce waste, eliminate unnecessary expenses, and improve profit margins? Delivery costs are a great place to start. Thanks to the most modern delivery strategies, the latest systems, and the smartest warehouse solutions, the cost of managing delivery costs is lower than every before. So if you are a company that delivers its own products, a business that ships goods for other clients, or a firm that works closely with third-party delivery services, take note of these ideas on how to save money:

1. Stealth Warehousing

If you have plenty of urban shipments and storage options to manage, consider moving into the new age of hybrid warehousing. While large, central warehouses still make sense for many companies, businesses that have a variety of urban clients to serve – and dislike the enormous utility bills of massive warehouses – may be better suited to adopt multiple small, regional warehouses that are located within cities. These dedicated warehouses can be set up in a wide variety of locations, from second floors to cheap rental space, and companies cut costs when it comes to shipping time and warehouse utility bills. Everyone wins – it just takes an effort to shift the way that you look at warehouses.

2. Customized Updates and Changes

If you need a massive overhaul of your storage or shipping systems, we still recommend a turnkey system that implements everything at once for a minimal cost. But if you are like many businesses, you want to improve only one aspect of your delivery system instead of reinventing the entire thing. Customized updates and pinpoint solutions make this possible. You keep within your spending budget, and your business gets the benefit of a single solution, like digital invoices, the elimination of overages, better security, signature capture…the list is a long one, but know that you can take your pick instead of being pressured into paying too much for technology that you do not need.

3. Tagging

Tagging focuses on tracking shipments, whether through batches or through individual units. Sometimes these tags are passive RFID devices – sometimes they are simple barcodes or other devices. The cost for such tagging has dropped in recent years and is now around only 10 cents per item for basic tracking. The result? A low cost solution that gives you new security abilities, enhanced logistic management, and high-accuracy shipping that mean you will never lose or misplace another product, giving you significant long-term savings.

4. More Usable Data

Sometimes supply data is too nebulous and confusing to use in real strategy making, but choosing the right types of tracking and product intelligence can indeed help you save money. In production, the right manufacturing solutions can help you manage raw materials more effectively when scheduling batches. We also offer software features that help you make sure that you are meeting industry standards, prepare for recalls if necessary, and create individual performance metrics to help you advance your own goals on your own terms. This adds up to savings throughout the supply chain.

5. Less Dumping

Dumping is a frequent packaging issue for busy producers and shippers. Extra packaging material leftover has to be dumped, losing your business money every time you have byproducts. Consider shifting to greener packaging products. If you take out the plastic and just use cardboard, you can recycle any leftover scrap and save money while making your production processes leaner than ever before. Consider reducing package sizes to save even more money if possible. A little innovation in the packaging field can go a long way.

6. More Mobile, Less Paper

It’s 2014, and there’s no reason that your company should be wasting money printing out data reports, orders, requests or even invoices. Our digital delivery solutions can help you switch to electronic record keeping, capture signatures on a screen rather than paper, and generally get rid of your old paper dependence in favor of faster tech that doesn’t waste ink or pages.

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