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如何降低物流成本:19 位专家揭示了组织可以降低物流运输和运输成本的方法

降低物流成本通常是企业利润的第一要务。有许多方法可以帮助改善供应链流程,进而节省企业资金。降低物流成本的方法包括优化库存水平、重新绘制更好的运输网络、创建更好的流程、改善供应商/第三方关系等等。
为了帮助您找到更多想法,我们询问了 19 物流专家提出以下问题:
“对于公司如何降低物流成本(运输成本或运输成本或仓储成本等),您的第一条建议是什么?”
看看我们的专家怎么说:

认识我们的物流专家小组:

  • 大卫·马丁内利
  • 布莱恩·斯图兹曼
  • 罗米·陶尔米纳
  • 汤姆·威尔金斯
  • 布莱恩·马蒂摩尔
  • 斯科特·斯通
  • 丽莎·亨索恩
  • 布赖恩·萨特
  • 奥利维尔·拉鲁
  • 谢尔·霍洛维茨
  • 安德烈亚·斯特劳德
  • 丹尼斯·马利亚尼
  • 理查德·麦克吉尔
  • 鲍勃·希里拉
  • 查克·因特里里
  • 马丁·默里
  • Suresh Iyer 和 Advait Rahalkar
  • 罗伯·奥伯恩
  • 亚历克斯·史塔克


大卫马丁内利

David Martinelli David 是 Blossom Growth 的独立负责人,擅长:制造和运营效率、供应链效率、ERP 和软件实施和改进、交易尽职调查和合并整合。 David 不仅支持 Blossom Growth,他还是一名企业家,正在与他的第二家初创公司 Hydrate Technologies 一起发展,他同时担任创始人和总裁。在加入 Blossom 和 Hydrate 之前,David 曾在 NEWSCYCLE Solutions &Vista Equity Partners 担任软件主管,并在 Alvarez &Marsal 担任经理。 David 拥有芝加哥大学布斯商学院的 MBA 学位和学士学位。伊利诺伊大学香槟分校化学工程专业。他还获得了六西格码黑带、精益制造和训练有素的医疗急救人员的认证。
关于公司如何降低物流成本的第一条建议是……
“以有组织和勤勉的方式识别和消除开放空间。这条简单的语句在执行时会带来以下业务成果:
1.通过提高垂直空间利用率或重新配置箱柜来提高箱柜和货架的存储密度,以实现这一目标2。通过更好地充分利用卡车来降低货运成本。
2.通过在整车 (FTL) 和零担 (LTL) 整车运输中提高卡车利用率来降低货运成本。
3.通过消除运输过程中的移动,减少对箱子拣选托盘的损坏。
4.更好地利用可用的地面空间来增加存储密度。
5.鼓励有组织的运营,这与劳动力直接相关。
效率、资产利用率和库存准确性。


布莱恩·斯图兹曼

Brian 最近投资了 BlueGrace Logistics 的特许经营权。 Brian 和他的团队在印第安纳波利斯设有运营地点,但业务遍及全球,致力于成为第三方物流行业新标准的一部分。通过透明的沟通、提供多种选择和一流的技术,BlueGrace Logistics Indy 已准备好与他们的客户进行真正的协商,并为他们的服务提供真正的好处。
公司如何削减开支的第一秘诀物流成本是……
在考虑公司如何节省物流成本时,会想到几件事。作为第三方物流供应商,我们听到了许多潜在客户不希望使用真正的解决方案来帮助他们省钱的原因。但到目前为止,实际上每天花费公司资金的一个反应是我们一直这样做,或者我们已经有了很好的定价。在某些情况下,是的,他们目前的业务和协议是一笔大买卖,但在许多情况下,这些声明是不明智的,而且是经过反复演练的。是的,市场上有大量公司可以协助满足物流需求,但有些人没有意识到,与实际运输或储存的货物相比,真正节省的费用更多。事实证明,能够实施更简化的流程或报告以节省您的运输和会计团队的时间,从而节省资金。如果按月计算,在实施这些流程时,公司可能能够节省他们的团队在运营职责上的时间,让他们有更多的时间来处理其他职责。这只是简化流程如何节省总体成本而不仅仅是运费或存储成本的一个例子。”


罗米陶尔米纳

Romy Taormina 是 Psi Bands 的首席执行官/恶心救济负责人。 Psi 乐队在美国 10,000 多个地点销售,包括 CVS、Target、Babies R Us、REI 等。我们进口我们的产品。由于所有港口延误,安全库存计划已成为降低履行成本、仓库错误和压力的关键组成部分! Romy 与前 Target 买家 Vanessa Ting 共同撰写了一个名为“零售表的两面”的博客,我们在该博客中为企业家提供有关如何获取和保持其产品在零售货架上的提示和资源。我们最近强调了将安全库存作为降低成本的关键组成部分的必要性——以及为什么!
关于公司如何降低物流成本的第一条提示是……
“有人可能会说,携带安全库存会增加仓库成本。是的。但是,请考虑另一种选择以及如何实际节省金钱、时间和人际关系:
* 您不会每天花费数小时试图弄清楚哪些零售商会收到您的有限商品,哪些不会。因此,您不必联系您的零售商来尝试证明您为什么不向他们发送所需数量并要求他们重新签发具有新交货日期的采购订单,从而节省时间。
* 您不会危及关系与您的买家 - 并冒着他们终止与您的业务的风险。
* 您不会因无法交付的采购订单而招致零售商违规费用。
* 您不必以昂贵的空运方式从制造商加快发货到您的仓库运费价格,因为您手头有货物。
* 您不必以昂贵的 2 天或 3 天运费而不是标准地面运费加快从仓库发货到零售商的速度。 ”


汤姆·威尔金斯

Tom Wilkins 是 Metano IBC Services, Inc. 的所有者。Metano 为需要在生产过程中移动散装液体的消费品、化学品和其他制造公司提供中间散装容器 (IBC)。
#1关于如何降低物流成本的提示是……
“对于需要运输散装液体的制造商而言,中型散装容器 (IBC) 是一种与标准桶相比经济高效的运输解决方案。一个 IBC 可容纳 6 个桶,但占地面积却小了 33%。通过选择方形中型散货箱而不是圆形桶,您可以在更少的容器中运输更多的液体,并显着节省劳动力、仓储和运输成本。不锈钢中型散货箱也可以租用,以增加灵活性和节省开支。”


布莱恩·马蒂摩尔

Bryan Mattimore 是创新机构增长引擎的联合创始人兼首席创意人。他是“创意风暴,如何领导和激发创造性突破 (Wiley Jossey-Bass)”的作者。
关于公司如何降低物流成本的第一条建议是……
“我们最好的物流/供应链提示是:利用供应商帮助降低成本。供应商有时可以吸收直接的物流成本,但也可以成为降低成本的合作伙伴。例如,一个想法是创建一个买家联盟(我们的客户和他们的几个供应商),以降低购买量的成本来购买所需的物流供应品(即运输燃料)。 ”


丽莎·亨索恩

Lisa Henthorn 是 Lisa Henthorn; Eyefreight 的营销传播副总裁。 Lisa Henthorn 是一位经验丰富的营销和人力资源专业人士,在销售、营销和咨询方面拥有超过 16 年的经验。作为营销传播副总裁,Lisa 在 Eyefreight 指导企业传播,她负责营销战略和规划。在加入 Eyefreight 之前,Lisa 是 PartnerData 的营销和人力资源副总裁。在那里,她通过 PartnerData 产品和服务的营销以及所有人力资源战略、政策和流程的设计和实施来执行组织的增长战略。丽莎目前和她的三个女儿住在伊利诺伊州埃文斯顿。她是一位狂热的作家和博客撰稿人。
关于公司如何降低物流成本的第一条建议是……
“对于企业来说,降低物流成本,自动化是关键。调节、自动化和优化手动流程可以减少员工需求,将生产操作集中到成本较低的区域,并创建一种更主动的方法来确保客户满意度,同时提供规模和控制成本。借助自动化、具有成本效益的运输和物流系统,公司可以实施重大战略变革,以提供可见性、降低成本并提高客户服务水平。此外,基于云的技术的出现使这比以往任何时候都更容易/更实惠;因此,即使是小公司也可以利用。
保持物流支持的每笔订单成本较低需要让客户满意(因此公司将他们保留为客户)。通过保持客户的满意度,公司可以保持业务正常运转,从而将物流支持成本分摊到更多的订单/客户上。由于客户满意度与总体成本降低之间存在直接关联,因此在衡量物流成本变化时应将客户服务考虑在内。
当管理复杂性和保证可见性的适当工具到位时,组织就有更多机会不断创造运营效率,让客户满意并提高底线。”


斯科特·斯通

Scott Stone 是 Cisco-Eagle 的营销总监,Cisco-Eagle 是一家为工业运营提供集成材料处理系统的供应商。 Scott 在工业运营和营销方面拥有超过 23 年的经验。
关于公司如何降低物流成本的第一条建议是……
“任何公司应该做的第一件事就是努力真正了解
它的成本——每个托盘、每个 sku、每个订单发货等。假设理解了这一点,这个问题的答案可能会更容易。但是,一般而言,劳动力成本始终是最高的,或者在任何仓储操作中都接近最高。每个项目都应该通过可以通过多种方式解决的劳动力成本的棱镜来看待。仓储员工的激励计划,如果结构良好,确实有效。自动化重复性结构化任务的项目也是如此——例如灯光或语音引导拣货、
旋转木马存储、机器人技术等。一个不太复杂的答案是审查产品槽位以降低拣货和上架成本。任何减少回报的事情也能真正产生影响。”


布赖恩·萨特

Brian Sutter 是 Wasp Barcode Technologies 的营销总监。
关于公司如何降低物流成本的第一条建议是……
“存货成本定义为库存商品的持有成本。如果您正在寻找一种降低库存成本的方法,那么您很可能库存过多。过多的现有库存会增加您的存储成本,从而增加您的销售成本,并占用流动现金。
这里有三种方法可以回收现金并降低您的库存成本:
了解您-最新库存水平:
跟踪您的库存水平是防止库存积压并因此降低库存成本的最直接方法。尽管基于电子表格的库存管理系统可能会让您大致了解在给定时间点您有多少库存,但诸如 Wasp 的软件和库存管理系统之类的解决方案有助于使该信息自动保持最新;允许小型企业就手头有多少库存做出快速的战略决策。
评估您的 SKU:
简单地说,SKU 强度就是您的企业每单位有多少 SKU。如果您的企业销售礼品等物品,则每件物品可能只有一个 SKU。但是,如果您的企业销售诸如服装之类的商品,它可以有多种颜色和尺码,那么一件商品可能有许多 SKU,这会导致更高的 SKU 强度。您是否不销售任何尺码 2 的连衣裙,因为没有对尺码的需求两件衣服还是因为你没有两件尺寸的衣服?了解差异将有助于您的企业不仅避免
缺货,还可以避免积压不销售的商品。了解 SKU 强度所需的信息可在库存系统的历史文件中找到,但您还需要了解系统告诉您的信息。通过汇总销售和库存信息来调整您的 SKU 强度,以准确了解您的库存情况。
跟踪库存变动以自动重新订购:
当您的库存不足时,您能多快获得替换商品?花费的时间越长,您必须保留的物品就越多,因此您的成本就越高。实施永续盘存系统可以让您实时跟踪销售和库存变动——让您可以在对您的业务最有意义的时候自动重新订购库存。


奥利维尔·拉鲁

Olivier Larue 在实际实施精益/TPS
(丰田生产系统)方面拥有 20 年的经验。在加州硅谷取得成功的咨询生涯后,他加入了丰田供应商支持中心 (TSSC, Inc.)。 Eventually, Olivier decided to fuse his unique style of shop floor-based teaching with his proficiency in TPS to create Ydatum Operations Management Engineering, Inc. Olivier is a guest lecturer at the University of California at Berkeley School of Engineering and has been a presenter for SME. His expertise also includes Six-Sigma, Hoshin Kanri, and a proven ability to help companies achieve sustainable, system-wide improvements and customer satisfaction that is measured in terms of improved quality, cost and lead time.
The #1 tip on how companies can reduce logistics costs is…
“The best thing companies can do to reduce warehouse inventory is to make a choice between fixing quantity or fixing time — not both. Let me explain:One purpose of the pull system is to act as a
countermeasure against the effects of processes that can’t be located near each other. Ideally, there is no need for inventory due to conveyance because processes are co-located and they work at the same pace. But in those instances when processes are actually far apart and conveyance is required, if the pace of
conveyance is equal to the pace of production, then all the material will in route and the quantity of material transported will be determined by the conveyance time divided by the rate of pull.
However, batch conveyance might be necessary to reduce the cost, and the rate of supply will not equal to the rate of pull. In this case, some inventory will be in the stock and in the store.
*Fix quantity, variable time*
There are two methods used to trigger the conveyance of parts from a process that is far away. One is to deliver a fixed quantity, but at variable intervals. The trigger is when the quantity left in the stock gets
down to a certain point, whether that’s tomorrow or next month. The timing depends on the rate of consumption of the following process. The ideal demand quantity is one part, with one kanban for every part.
*Fix time, variable quantity*
The other method is to deliver at a regular interval but in variable quantities. The choice depends on the situation, as supply chains involve too many variables — cost and size of parts, distance, shared processes, transportation method, and so on — to allow for a general solution. However, the closer we come to the ideal condition, the less difference there is between the two methods.
But even when one-by-one is not achieved, there are some basic rules to follow and basic errors to avoid.
For example, it is a mistake to fix both time and quantity. This is an error we often see with automated material replenishment process such as MRP and other IT-based solutions. Fixing time and quantity may be practical, but it falsely assumes that over time there are no changes in customer demand. This invites —actually, it begs for —both overproduction and shortages. These, in turn, will later necessitate large adjustments. Not only are large adjustments a pain, but they violate Toyota Production System thinking, which seeks to reduce fluctuations through frequent small adjustments.
Here’s a simple example that will illustrate the difference:If you live close to the grocery store, you are likely to choose a fixed quantity/variable time method of shopping, since it’s so easy to just go
get something when you need it. If you live far away from the grocery store, you are likely to choose a fixed time/variable quantity method, so you can combine your grocery shopping with other errands in town, saving on time and gas. Once you have chosen the correct method for your situation, you need to calculate the lead-time in order to have the correct inventory to support it.


Shel Horowitz

Shel Horowitz is a green business profitability consultant, copywriter, speaker, and author, currently introducing a new aspect to his work:showing businesses how they can profit while making a difference on such issues as turning hunger and poverty into sufficiency, war into peace, and catastrophic climate change into planetary balance–and going beyond sustainability to the world we all want.
The best way to lower an organization’s logistics costs is…
“As a green profitability consultant, I always look at how to cut costs by going greener. For logistics, I’d look at the overall area of fuel costs and examine reducing fuel consumption–by streamlining routes, making vehicles more aerodynamic, changing bad driver habits (like long idles), and perhaps fuel remixes that include vegetable oil.”


Andrea Stroud

Andrea Stroud is the Research Program Manager for APQC’s supply chain management, product development, and innovation research. She conducts research and publishes relevant, meaningful content for APQC members and other clients.
The #1 tip on how companies can cut logistics costs is…
“The #1 way to reduce warehouse inventory/carry costs is to improve inventory accuracy and visibility throughout the supply chain. Here are some of her findings and insights from her research (it’s a bit long but has great data points in it):This is an important part of supply chain management because organizations that allow their inventory accuracy to drop run several risks. Misleading inventory levels may make it seem that these organizations have more inventory than they actually do, which leads the organizations to sell stock that is not there and can result in dissatisfied customers. Inaccurate inventory data may also mask inventory that is actually there, which can lead to stock remaining in a warehouse until it becomes obsolete.
A related issue is increased inventory carrying cost. To get a better idea of how much additional cost can be related to carrying inventory, APQC reviewed data from its Open Standards Benchmarking(r) in logistics. The data shows a $101 difference between top-performing ($51.89) and bottom-performing ($153.33) organizations regarding inventory value per $1,000 in revenue. For an organization with $5 billion in revenue, this difference translates into $505 million worth of inventory stored in warehouses.
Aside from lower inventory value and more satisfied customers, higher inventory accuracy can lead to improved performance in other logistics processes.. APQC’s Open Standards Benchmarking(r) data indicates that an increase in inventory accuracy from 98 percent to 99 percent is associated with a decrease in the pick-to-ship cycle time for customer orders, a decrease in the percentage of orders expedited, and an increase in the amount of sales orders delivered on time. When the organization spends less time picking materials ordered by customers it needs to expedite fewer orders. Faster processing and delivery of products leads to more satisfied customers and lower inventory carrying cost.”


Dennis Maliani

Dennis Maliani is a Business/Technology Executive who is innovative and results-oriented leader with extensive experience defining business strategies and developing transformative solutions that deliver immediate results and improvements across enterprise-level environments. Proven track record of designing and executing new initiatives that optimize IT operations, elevate service and support delivery, and strengthen technology capabilities. He’s an exemplary leader with a tactical background in lean business processes, system infrastructure, and technical support. He holds MBA with dual emphasis in International Business and Information Technology from University of LaVerne.
The #1 tip on how companies can reduce logistics transportation and carry costs is…
“The number one thing companies can do to reduce warehouse inventory errors (transportation costs or carry costs or warehousing costs etc.) organizations as a whole have to adopt and apply lean principles to their company’s business and workflow processes. The principles include:
1. Value:Solicit feedback from their clients or tap into their company’s’ knowledge base. Based on their past business demands and supply needs define what is of most value to their customers.
Ex:If its product quality issues based on their customers feedback then they have to work on their Quality assurance and quality control standards to ensure they produce a superior product. Customer loyalty is critical, on average it costs five times more to acquire a customer than to retain a customer.
2. Value Stream:Work with their teams to identify the company’s value and eliminate waste. Analyze their processes against the types of wastes below and remove them.
a. Transport – unnecessary movement of materials from one location to another.
b. Inventory – over production of goods which might require huge costs in storage, space consumption, packaging costs etc.
c. Motion – unnecessary movement if workers have to access equipment or tools in various locations of the company to do their job – time and money wasted. At times, it requires to redesign the warehouse floor plans and have everything thing at their disposal in one location.
d. Waiting – Due to un-synchronized or breakdown in interdependent processes, poor technical support etc. leads to loss of time and missed opportunities.
e. Over-Processing – Caused at times by lack of standard operating procedures every employee performing a task as they see fit or using wrong equipment for a task.
f. Overproduction – Too much inventory causing inventory costs due to lack of demand &supply data.
g. Defects – Due to poor quality control and quality assurance measures results in defective products, returns, law suites.
3. Flow:Create constant flow and strive to a attain balance between their supply and demand needs.
4. Pull:A company should produce based on demand. This in most cases requires having a supply chain management system that’s well integrated with their back-end warehouse, suppliers/vendors and their front eCommerce for their clients. With all those integration points in place when a customer places an order the entire works are just in time.
5. Perfection:Continuous mechanics or tools must be put in place like the PDCA (plan–do–check–act or plan–do–check–adjust) the Deming cycle.”


Richard McGirr

Richard McGirr is the marketing manager at floship, an e-commerce logistics company based in Hong Kong. I have worked in venture capital and venture backed start-ups for the past 4 years.
The #1 tip on how companies can reduce logistics costs is…

“In our experience one of the best things companies can do to reduce the cost, complexity, and logistics headaches in general is centralizing their distribution.
Oftentimes companies have products in an unnecessarily high number of warehouses. This makes inventory management much more complicated due to constantly having to manage and transfer stock between warehouses around the globe. It is better to have one distribution center in a major logistics hub, such as Hong Kong, that can service a very large area or possibly even the entire world from one location.
For example, a company that manufactures in China only has to send their goods to a Hong Kong warehouse and from there can effectively handle most if not all B2C and B2B shipments worldwide quickly and cost-effectively. This leads to a simpler supply chain and having inventory on the books for only a few days in transit compared to having their inventory in an ocean container for a month, and then waiting another 2 or 3 weeks to clear customs.”


Bob Shirilla

Bob Shirilla is the Owner / Manager – Simply Bags – Leading US distributor of personalized and custom tote bags.
The #1 tip on how companies can reduce logistics costs is…
Consider Supplier Location:Our marketing starts with an analysis of supplier locations and potential clients in the same region. For example, we are doing a marketing campaign targeting Beach Wedding Planners and have developed a business relationship with two manufactures in Florida. This gives us a competitive price advantage over other suppliers that have higher shipping cost.


Chuck Intrieri

@cmiconsulting93
Chuck is a management consultant at Charles M. Intrieri Consulting. A highly experienced supply chain professional, Chuck is recognized as a thought leader and innovator in supply chain optimization, 3PL, international purchasing and importing, requests for quotation (RFQ) generation, and inventory and management, among other areas of the field. Chuck focuses on cost reduction and continuous improvement in the supply chain and logistics, with an eye toward lean initiatives.
NOTE:The following information is excerpted from Logistics Cost Reduction:6 Focuses to Create More Profit via Cerasis.
An essential ingredient to logistics is cost reduction:‘Treat people well and profits will follow.’ Listen to your people. They have great ideas…
The best supply chain or logistics cost reduction tip is this:Collaborate and partner with Suppliers to help reduce costs. Suppliers can sometimes absorb direct logistics costs. Create a consortium of buyers (a client and several of their suppliers) to buy needed logistics supplies (i.e. transportation fuel) at a reduced cost that comes with buying in greater quantities.
Be bold and try the Supplier Day Conference:invite suppliers to your facility with a structured agenda. One topic is to Value Analyze your products and for all involved to submit logistics cost reduction ideas. The Supplier is the specialist in their area of expertise. They can help by working with you and being creative in a win-win cost reduction program. Retain the function of a part, but reduce the costs of components, never jeopardizing quality.


Martin Murray

@AboutLogistics
A senior supply chain management consultant and author of several books on supply chain using enterprise resource planning (ERP) software, Martin Murray has been the About.com expert for logistics and supply chain since 2008. Over the course of twenty years in supply chain, Martin has managed multi-national supply chain and ERP implementation projects in a number of industries, published eight books, and written articles that have appeared in several publications including SCM Expert and Maritime Gateway.
NOTE:The following information is excerpted from Reducing Supply Chain Transportation Logistics Costs via The Balance.
Transportation costs can be a significant part of a company’s overall logistics spend…
Some companies believe that the best negotiated prices can be achieved when they use a single source for all their transportation. This is fairly common for purchasing departments to use a single source for a range of products that a single vendor can provide.
The same can be achieved for transportation. By offering all transportation out to bid, via a RFQ (Request for Quotation), a company can provide carriers with a detailed explanation of what they require, which may fall outside of what is normally provided by a common carrier.
If they wanted to use a single source, a company would have to thoroughly evaluate a bidder’s ability to provide the service and whether the carrier has the stability not fall into bankruptcy within the timeline of the contract. If the winning bidder fulfills the needs of the company, and has been fully evaluated, a company could gain significant transportation savings using a single carrier.
To ensure you have an optimized supply chain, you want to make sure you’re delivering what your customers want, when they want it. And you’re achieving that goal by spending as little money as possible. Reducing your transportation costs can be a significant way to spend less money, without impacting customer service.


Suresh Iyer and Advait Rahalkar

@Genpact
Suresh Iyer is vice president and global practice leader for engineering and supply chain services at Genpact. He is responsible for strategy development, new capability acquisition, and execution. Suresh is an expert in the field of supply chain and engineering design.



Advait Rahalkar is assistant vice president with the supply chain practice at Genpact, where he builds solutions for supply chain management. He is serving as project manager of business process re-engineering and transformation services and has been operations leader for the engineering design and analysis services for energy, oil, and gas clients.
NOTE:The following information is excerpted from Smart Strategies for Logistics Cost Optimization via Industry Week.
In a world where logistical expenses typically comprise up to four to five percent of total costs for a manufacturing firm, the increasing complexity of the global supply chain applies increased pressure on margins…
Most organizations try to tame complex supply chains by deploying expensive technology tools, hiring consultants for business process re-engineering, or, more recently, deploying exotic analytics frameworks.
Alone, none of these solutions can produce the type of savings needed to outcompete in this new, more complex and more competitive economy. What is required is a smart mix of process, analytics and technology to simplify the logistics networks, mitigate logistics risk and optimize the associated costs. We call this a three-pronged holistic approach:

  1. Process Design and Development
  2. Analytics
  3. Enabling Technology


Rob O’Byrne

@LogisticsBureau
Rob O’Byrne is owner and group managing director of specialist management consulting firm Logistics Bureau, based in Australia and southeast Asia. Rob has a passion for helping people and businesses improve performance, and he has a reputation as a no-nonsense consultant who delivers results. Rob oversees the operations of Logistics Bureau Group including Logistics Bureau, Dawson Consulting, Benchmarking Services, Supply Chain Leaders Academy, and a social enterprise called Virtual Well Done. Rob has overseen more than 1,400 projects across a wide range of industries.
NOTE:The following information is excerpted from Logistics and Distribution Cost Reduction Techniques via Logistics Bureau.
Cost reduction is a challenging subject in logistics and distribution and too often we’ve seen companies just try to cut headcount in order to achieve quick cost reductions. This is often completely the wrong strategy…
Cost reduction starts with fully understanding all costs and separating them into variable and fixed costs.
Variable costs fluctuate with volume (truck fuel, direct labour, packaging, etc.) while fixed costs don’t (rent).
Some costs, such as electricity and management overhead may be mostly fixed, but with a variable component if volume changes significantly (e.g. adding an additional shift).
As we have seen in previous classes, it is critical to measure the right parameters and processes and ensure that measurements are meaningful and pegged against appropriate volume indicators.
Start with the big picture and then gradually work down to more detail. The major cost components we will review in this class include:


Alex Stark

@kaneisableinc
Alex Stark is a Modern Marketing Expert and Supply Chain Collaboration Evangelist for ‎Kane Is Able, Inc.
NOTE:The following information is excerpted from 5 ways to reduce logistics costs in consumer goods distribution via Kane is Able, Inc.
One of the best ways to reduce logistics costs is to…
Integrate data from sales and fulfillment systems.
Allocating available inventory against current orders creates problems. There’s no algorithm to automate this subjective decision process. The allocation decision also invites personal bias, as customer service and sales representatives may steer available inventory to their own customers.
One solution is better integration of sales and inventory data. While this could be a barrier for smaller companies with limited systems resources, many 3PLs have the experience and resources to integrate data from multiple systems to facilitate decisions. When combined with the company’s unique knowledge of the retail customer, decisions can made based on customer priority, not a “first-in, first-out” model that risks disappointing key customers.
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