Reducing costs in the supply chain almost always starts with a desire to renegotiate contracts with third party logistics suppliers.
There’s no doubt that such a strategy brings some benefits in the short term, however in the medium to long term there are limits to what savings can be achieved by putting price pressure on suppliers.
This white paper examines how supply chains can be optimised to give solid, future-proof savings in logistics costs.
Below is a sneak preview:
“By siting a distribution centre in a suitable location, the supply chain can become much more efficient by reducing the less than full truck loads and the direct, non-stop shipments. This consolidation and realignment of the flows reduces the number of trucks needed. Furthermore, the distribution centre may be a cross-dock if input and output can be coordinated particularly well and thus avoid the need for storage.”