Supply Chain Cost Reduction
21/07/2009
In competitive markets cutting costs is important to keep profitable. This means ensuring all aspects of your operations are as efficient as possible. In terms of the supply chain there are two major areas to consider, the warehousing and transport costs and the supply chain itself.
Warehousing & Transport Cost Reduction
When considering reducing warehousing and transport costs, all key cost drivers such as manning, space and mileage need to be assessed in terms of the current and forecast business volumes. Logistics consultants can help with this and will often then negotiate with third party contractors on your behalf. For example Total Logistics have achieved labour cost savings of 10% or more, 30% increased capacity and 20% on third party costs with this type of project
Supply Chain Cost Reduction
Different types of modelling and lean techniques are used to identify non-value added time and costs in the supply chain. Types of analysis used might include end to end supply chain modelling, freight cost benchmarking and inventory modelling. Total Logistics have provided cost savings of 26% by improving product sourcing by market, and service improvements of 10% with no increase in inventory, and over 10% reduction in international freight costs and 30% reduction in lead time.
For more details on help with supply chain cost reduction, visit www.total-logistics.eu.com
