Cutting Supply Chain Costs
- 14 June, 2016
One of the best ways to reduce overhead and increase profits in your business can be found through reducing supply chain costs. One of the top ways of reducing costs is to outsource your warehousing and transportation to a company that already has an established operation and possesses a skilled workforce.
However besides saving money there are several other reasons outsourcing your warehousing and transportation can benefit your company which include:
– The service provided is not your company’s core competency and can serve as a distraction for company leadership.
– Your company’s operations are expanding at a rapid pace and outsourcing provides an effective means of accessing more space, and other resources.
– Your business needs a certain degree of flexibility and a more variable cost structure that cannot be achieved with maintaining your own warehouse and transportation network.
– Your company needs specialized skills, technology, and equipment that you don’t want to invest indirectly.
The most important component to get right is service specification which includes key aspects such as frequency/volume of delivery, special conditions related to packaging, handling, climate control and so on. Defining these initial components is key to avoiding issues that can come from outsourcing such as higher than expected costs, poor service, and misaligned expectations.
Here at Arab Cartage we’ve been in business for 37 years and with our extensive experience in warehousing and transportation, we can provide a beneficial and cost cutting service for your company. Give us a call at 1-800-423-0478 or email us at dispatch@ac-an.com.
Info for this post was cited from the following link: http://www.supplychainquarterly.com/topics/Strategy/scq201102seven/