Four ways to reduce your company's logistics costs

July 16, 2021

Logistics covers all activities implemented to plan, coordinate and optimise the flow of supplies, production, distribution, after-sales service and returns.

Logistics covers all activities implemented to plan, coordinate and optimise the flow of supplies, production, distribution, after-sales service and returns.

Good logistics management can give a company a competitive advantage through better service quality and costs. This is why operators are looking for ways to reduce their logistics costs in order to ensure the sustainability of their business.

In this article we will look at four ways to reduce the logistics costs of a business.

  • Optimising vehicle loading

Optimising the loading is the first factor that the company should focus on.

If the company ensures that all its vehicles are filled to capacity, the company will see a reduction in the number of journeys and therefore transport costs. 

Reducing the number of journeys will also allow the company to reduce its carbon footprint, which will have a direct impact on the company's image. 

Indeed, reducing emissions is a new challenge for companies and their customers. 

By taking the environment into account, the company conveys a positive brand image. 

  • Route optimisation

Route optimisation - like load optimisation - has a positive impact on the ecological behaviour of transport companies. Indeed, having a detailed visual and a precise strategy on the carriers' routes will allow the company to make savings on the fuel consumption of its drivers and thus limit their CO2 emissions.

Moreover, as we all know, traffic is very unpredictable. Accidents happen, roadworks, road restrictions etc. These hazards make it difficult for those who have to plan the routes because the data is not transmitted in time. That is why it is essential to be able to plan the best route with real-time data in order to avoid traffic, hazards and find a quick alternative in case the company faces a risk.

In the end, a better route also means faster shipping to the end customer.

Therefore, route optimisation will increase the productivity of transport companies, and improve customer service - at lower cost.

  • Optimisation of the vehicle fleet

Optimisation of the vehicle fleet is possible if loads and routes are optimised.

In fact, real-time monitoring of its vehicles will enable the company to prevent hazards such as accidents, breakdowns, etc. in order to have vehicles that are functional on a daily basis and thus avoid delays.

  • Implementation of a TMS (Transport Management System)

Several advantages can be derived from the use of a TMS: optimisation of vehicle loading, optimisation of the route, optimisation of the vehicle fleet. Optimisation that leads to a reduction in logistics costs. 

Indeed, the TMS is an indispensable tool for reducing logistics costs. The TMS will generate the most optimised transport plans according to the company's needs. All the data will be shared on the same interface, providing collective information to all the players in the supply chain. Real-time knowledge of traffic hazards and disruptions will also be possible.  

At Everysens we offer the first collaborative, predictive and real-time TMS on the market, designed for shippers and forwarders. This platform digitises a whole range of transport processes, simplifies exchanges and decision support - thanks to AI technologies. This tool allows companies to control their expenses and ensures proactive monitoring of flows.

Are you curious and interested in a demo of our platform? Schedule a meeting with our team.