Logistics Management – Managing ‘Uncontrolled Costs’
Logistics Management in a Competitive Market
Transportation
inefficiency and rising costs are the two key logistics management
challenges the Australian road transport industry faces on a day-by-day
basis. A contributory factor is that many road freight trips are poorly
managed by manufacturers' logistics functions or their transport
partners, leading to half-empty outbound and/or empty return truck
movements over long distances. Additionally, the following factors are
an issue…
- Fuel costs have increased from US$30 to US$60 a barrel over the past five years
- Increasing road tolls and traffic congestion on major routes
- Lengthy delays caused by increased roadworks and maintenance.
Logistics Management - Cost Reduction Program
Customer deliveries and associated distribution costs keep rising, fuel, drivers hours costs just to name a few. Consumers are unwilling to pay more for the products, therefore margins are reducing. Core Logistics Consulting’s logistics management cost reduction program is tailored to both in-house fleets and businesses using third party contractors.
Some Logistics Management Questions
Most
businesses using third party contractors never look at the following
factors that play such a key role in bottom-line profitability. From
our extensive experience across a wide range of industries, your
contractors will have their own inefficiencies, and you will be paying
for them in your existing rates, and in-house fleets suffer from the
same issues…
- Is the scheduling and routing optimised?
- Do we have the corrrect numbers, types and combinations of vehicles?
- Are our third party providers’ depots in the best location?
- Are we getting value and service from our contractors?
Failure
to focus on the above logistics management issues will almost surely
guarantee cost ‘blow-outs’, poor levels of service and loss of business.
How Core Logistics Consulting can Help You
You
probably don’t need a consultant to tell you that a customer service
problem exists, but having a consultant to help resolve the problem can
make a big difference. CLC can help you to carry out an accurate
diagnosis of the causes of the problems, and work out the solutions.
Tougher problems frequently require action on various fronts…
- operational processes
- performance measures
- technology and training
- and occasionaly organisational issues are at play, particularly where third party service providers are involved.
Using
a combination of our logistics experience and business analysis tools,
we clearly show you the cost reduction opportunities that exist in your
business. We also review the ways in which your Customers interface
with you, and demonstrate ways of reducing costs and improving
efficiencies. This type of project frequently delivers a shared
financial benefit for all stakeholders. This could result in adding
additional value to your contract with your customers, while at the
same time you take a share of the savings for facilitation of the
project.
Benefits of Better Logistics Managment
By adopting a sound logistics management strategy it is possible for your company to enjoy the following benefits…
- reduced transport cost by up to 20%
- stabilised warehouse work flows
- improved customer service
- reduced delivery lead times
- be more responsive to customer demands
- improve strategic decision making
- underpin strategic growth objectives
- make cost effective back-loading easier to achieve.
Take Action Today!
Don’t delay enjoying the benefits of implementing a lean, efficient supply chain program in your current business operation. Call today on (02) 9484 3422 or, if you have a specific enquiry, make use of our Logistics Transportation Enquiry Form.