Top 09 Tips to Reduce Your Supply Chain Costs

Did you know that your business can enhance profits by optimizing your supply chain management in India? You can experience cost reductions and improved processes that lead to increased revenue. One of the most tested and true methods to achieve these cost reductions is by going with a third-party logistics (3PL) provider. Their order fulfillment and supply chain services can support you reduce costs by focusing on your customer needs, improving supply chain performance, and adding automation and technology to your strategy to reduce errors and increase profits.

Here are 10 tips to reduce your supply chain costs.

1. Focus on the Customer

The requirements of your clients should be at the forefront when you consider your supply chain structure and strategy. If you focus on your customers by offering options like next-day delivery or unlimited free shipping with a paid membership, you will provide the solutions they want and be more effective as a business.

2. Supply Chain Strategy

Creating a dynamic supply chain system will help you frame your goals and be more productive. Your supply chain’s performance should be evaluated to assure you are meeting your customers’ requirements and staying on top of your goals. An effective strategy should meet the following criteria:

3. Make Better Use of Space

It costs to store inventory and supplies in your warehouse, so you should start it part of your plan to make the most of this space. Take an assessment of your warehouse and decide whether you are achieving this goal. If there are ways to reshuffle your inventory, you may discover that you can save money and be more efficient in the way you use your space.

4. Sales and Operations Planning

Sales and operations planning (S&OP) are needed for a supply chain to operate at its greatest efficiency. Optimal performance depends on planning, but it can be costly and complicated. When you work with a 3PL provider, the team will eliminate waste and redundancies, help you plan better through data analysis and forecasting, and increase visibility so everyone involved is up-to-date.

5. Supply Chain Network Design

Supply chain network model involves reducing costs and enhancing accuracy to reduce product handling. Each “touch point” between your supplier and your customer raises costs and increases the risk of error and damaged products. A poorly designed network can lead to excessive handling, too many stock locations, and an inadequate use of your distribution locations. As a result, you will experience high transport costs and low customer service. This is yet another reason it saves to work with a 3PL partner. They have required experience to resolve issues in your network by designing an effective plan.

6. Move Supplies Faster

A 3PL provider can save you speed up shipments from suppliers so you can establish closer to when you need items. When inefficiency causes you to order in advance, you can incur warehouse costs because you will require space to store these items when customers order them. You risk losing or damaging stock because they sit around in the warehouse. By outsourcing your warehousing and distribution, you can shorten the time you take to get items from your supplier to fulfill customer orders.

7. Automation

One of the biggest benefits of working with a 3PL provider is access to automation software. Automation can save you reduce supply chain costs and make your operations more efficient.

8. Outsourcing Supply Chain Operation/Management

Outsourcing your supply chain management to a 3PL provider will help you improve performance while reducing costs. Warehousing and transportation are two of the most expensive features of your supply chain and an outsourced partner can provide more cost-effective and skilled services. By outsourcing, you will receive these benefits:

9. Track/Measure Performance

The next step to reduce your supply chain costs is to track your results. Observing your key performance indexes (KPIs) will help you determine realistic targets and set trackable steps to reaching those goals. Performance tracking will also help you accurately forecast for base supply, logistics, and stock renewals.

Reduce Your Supply Chain Cost with Us

If you are looking for the right company to partner with, Dexters Logistics is the answer. We rise to the challenge of meeting our clients’ needs through our services which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, order fulfillment, and more. To learn more about outsourcing your supply management in India, or to ask questions, contact us today. www.dexters.co.in