5 Strategies to Reduce Logistics and Shipping Costs

January 4, 2022

Around the world, the transportation and logistics industry is experiencing unprecedented disruptions and recent challenges have further stressed the supply chain. Consumer demand remains high – with no signs of let up – but the typical flow of goods is continuing to be delayed due to rapid swings in the labor market and restrictions placed on industries.

Transportation costs have increased dramatically for many reasons and those price increases are passed onto companies shipping their goods and consumers looking to make purchases. Workforce demands, driver shortages, regulations, and potential new emissions legislation that could mandate commercial vehicles in Canada and the United States toward battery-electric or zero-emissions are just a few examples of how these costs could be affected.

As organizations try to figure out how to work around the supply chain issues, there’s also the need to determine how to manage the transportation and logistics that go along with it – and ensuring the cost of it all works in favor of every party involved.

How can companies in need of transportation mitigate some of the costs associated with these lingering issues? And how can the transportation and logistics industry help pass savings along to organizations and consumers without sacrificing safety or service?

5 Strategies to Reduce Logistics and Shipping Costs

Be agile in how you’re willing to transport goods.

The mindset of, “this is how we’ve always done it,” has been confronted with so much change in the last couple of years. Prepaid, online, or upfront payments might only seem like minimal cost savings, but those savings can add up.

Consider packaging changes and be willing to adjust quickly.

Something as simple as packaging goods differently can allow for stacking, Tetris-like packing, and utilizing vertical space in a seemingly horizontal industry. 

Remain open to load consolidation.

Cut shipping costs on less than truckload freight with a third party that does the work to secure the most competitive rates, streamline shipment coordination, pick-ups, and deliveries.

Be willing to spend more to save more.

It might seem counterintuitive, but with current labor shortages, it’s important to weigh the cost of hiring additional help at potentially increased rates in order to fulfill demand. The benefits of being seen as a reliable delivery service can ensure continued business.

Find a transportation and logistics provider.

No two supply chains are the same and companies in need of transportation services can benefit from the relationships that are built by third-party logistics coordinators. Multiple pick-ups and drop-offs, expedited shipments, and just-in-time delivery service can help cut costs to companies used to handling shipments one at a time.

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