Logistics is a very important part of any business. It has a deep impact on the sales, market share and the reputation of the company. Logistics can be a costly affair but with some careful moves one can be smart enough to save costs on logistics.
OCEAN FREIGHT: Always appoint a carrier/agent with its own representation in the country where goods are to be send/received. This will save margin costs of the middle agents in native country.
ROAD FREIGHT: Always ensure that you have a rate tariff which lists all the service options needed by your business. Study the fuel surcharges closely. Check if you are paying more than what has been serviced.
AIR FREIGHT: Fuel surcharges, war surcharges keep on changing. Always check these while deciding quotes with the line/agent and understand all the aspects of costs before negotiating.
WAREHOUSING: Do you need a simple, secure, professionally run warehouse? Or do you need a state-of-the –art warehouse with real time updates and online access. While the latter one seems fancy, always note that it comes with a price which may not be necessary for your business at all.
Keep your eyes open to the latest updates of the shipping industry and you will be a smarter businessman.
By Kanika Adlakha