Transport Costs In Logistics: How To Optimize Costs?

How much does your logistics cost? If you’ve ever asked yourself this question as a professional in the sector, it’s time to examine the costs incurred by your logistics needs and optimize them in order to save money.

The optimization of transport costs, essential in the highly competitive logistics sector

The rise in the price of fuels caused by the increase in the price of a barrel of oil is reaching new heights. Since April 2020, the price of a barrel has quadrupled, heavily impacting logistics and transport companies.

Although players in the logistics sector benefit from a system aimed at passing on inflation, the bills climb very quickly and can end up in the tens of thousands of euros for small businesses and SMEs. Regardless of the size of your business, cost optimization is essential for better profitability. The rationalization of these costs consists of examining different levers.

The digital transformation of logistics: a major challenge to reduce costs and streamline activity

Road freight transport is one of the main emitters of fine particles and greenhouse gases. The digitization of logistics represents the main asset in the fight against this societal and health problem.

Even if the field of road freight transport contributes to greenhouse gas emissions, several solutions are at hand for players in the sector to reduce the carbon footprint of their activity, which is essential for the proper functioning of the flow of goods.

Combine technology and savings to achieve better journey management

Logistics has taken the step of the digital shift. Modern solutions represent an important lever for saving transport costs thanks to better capacity management. By using a transport management system (TMS, an acronym for Transport Management System) that matches your needs, it is possible to find and manage journeys in the most efficient way possible.

Freight exchanges, the ideal tool for a maximized filling rate

Modern APIs can be associated not only with transport management systems but also with freight exchanges. These interfaces provide access to a vast database of more than 45,000 customers.

Thus, it is possible to identify the carrier and the ideal vehicle in just a few clicks. Freight exchanges can be used flexibly while avoiding double entries and reducing transmission errors.

Mastery of the last mile is essential to optimize costs

The logistics sector is a pillar of the French economy. Without this sector, international trade and the national supply of goods would not be possible. In addition to the increase in fuel prices and the global inflation of production costs, the last mile, or rather its control, is one of the main challenges for reducing transport costs.

There are many ways to optimize and reduce transport costs

If the use of technological tools is essential, other avenues must be explored to reduce the price per kilometer of freight transport.

Among these solutions, optimizing the size of the packaging, reducing empty runs and eco-driving are important levers for reducing the cost per kilometer.

Optimize packaging size to reduce your transport costs

Half-empty parcels of goods, filled with cardboard boxes or bubble wrap to protect the goods, not only arouse the indignation of consumers who are increasingly sensitive to the environmental cause, but are also a source of increased transport costs.

By optimizing the size of bulky packaging, savings can be made, as the quantity of goods per vehicle is considerably increased. The same goes for packing pallets or packages: the fuller the vehicles, the more you will save.

Avoid empty runs to streamline your supply chain

By avoiding empty runs, the environmental cost is lower, goods are generally delivered faster and sponsors can realize significant savings. Thanks to digitalization, it is possible to obtain data in real-time and to rationalize journeys at all times.

The monitoring of the various stages of the transport is done online and obtaining a quote is done in just a few clicks. The highly competitive road freight transport sector must adapt and encourage innovation in order to meet daily management challenges.

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