Offering fast, cost-effective logistics services in North America
It is a fact that to run a successful business, logistics costs need to be efficient. However, how can you reduce logistics costs without sacrificing service or customer satisfaction? Fortunately, most of it can be mitigated with proper logistics planning, informed decision-making, and the right 3PL partner.
Logistics costs typically include procurement, storage, labor, packaging, transportation, and the administrative costs of transporting products from one end of your supply chain to the other. However, other factors affect logistics costs.
What affects logistics costs?
First, transportation, warehousing, fulfillment, inventory, and labor costs must be considered. Though some other expenses need to be addressed, such as:
The market cost of fuel
The labor market for commercial drivers
Delayed port arrivals
International trade restrictions, tariffs, and regulations
Increased cost of rent
Appropriate and timely courier services
Speed of delivery is becoming the new normal
We live in a fast fulfillment and moving world where clients constantly demand more. Companies have to adapt to these new demands. That’s why speed-to-delivery has become an industry mantra. It is no longer a luxury to deliver goods and services faster than your competitors, but it has become a fundamental expectation of clients who will not remain loyal to a business unable to meet their needs. Customers will find alternatives immediately if their requests are not being met.
How to achieve effective logistics?
Businesses need practical distribution network analysis with rational thinking behind the distribution operations, taking into account location, timescales, risk management, the number of distribution networks required, the size of the facilities, and product specialization to have an effective logistics process.
The idea is to ship from the vendor or manufacturer to the consumer with the less in-between movements necessary. All decisions must be subjected to a cost-benefit analysis to allow companies to rank their distribution channels and select the ones that give them the best profit.
At Last Mile Logistics, we understand the balance between quick deliveries and costs. As your third-party logistics provider, we can help you in this decision-making by providing up-to-date information.
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