With all industries focused on the bottom line, cost saving is a hot topic for most organizations. In the past five years, businesses have increasingly looked at their supply chain to reduce costs. Large players like Amazon are also putting pressure on the rest of the market to lower costs while still delivering higher, quicker service levels. There are many areas where costs can be reduced in the supply chain process – some less obvious than others.
The supply chain is no longer linear – it’s comprised of multiple touchpoints that increase the need for unshakable visibility. Strong forecasting software, along with a thorough understanding of your business to foresee seasonal peaks and changes in shipping demands, can aid in the avoidance of inventory and transportation cost issues.
Cost saving is an important aspect of any business, but it is important to not cut corners when trying to cut costs. Every aspect of the supply chain should be open to investigations, as uncovered revenue opportunities could be substantial. It is in an organization’s best interest to examine everything from your logistics providers and shipping methods to the placement of inventory in your warehouse. Chances are you’ll be surprised at just how efficiently you can run your business while reducing costs at the same time.