Optimizing Your Logistics Services’ Asset Utilization
Obviously, the end game when it comes to lean operations of any kind – including logistics – is to get more productivity out of fewer assets.
So if your logistics assets – such as vehicle fleets and storage facilities – are underutilized it signals inefficiency and means you are getting a poor return on investment. Changing the way your logistics assets are used, including whether they are owned or outsourced, can help resolve these inefficiencies and lead to lowered costs.
Run Fewer Vehicles More Often
Do all of your deliveries go out at the same time every day – such as first thing in the morning? This practice may actually require owning, operating and maintaining a larger fleet than necessary. Rather than have all deliveries leave at the same time, which leaves trucks idle for the rest of the day, consider using fewer trucks and spreading deliveries out during the course of the entire day (and night!)
Many industries run 24/7 and are willing to take deliveries in the afternoon and evening. This enables you to get double or triple duty out of each vehicle, and results in the need for a smaller fleet.
Pay Pallet Rate Not Truck Rate
If you outsource your delivery fleet, and your contracted rate structure is a “truck rate”, you are paying too much every time you send out a less-than-full truckload. Rather than pay a flat fee regardless of how full a truck is, consider negotiating a “pallet rate” with your outsourced logistics company.
This encourages the transport company to utilize their fleet more efficiently. And as fleet efficiency goes up, delivery costs to your business go down. As an added bonus, a more efficient fleet is better for the planet, too!
Clark Logic offers LDL (Less-Than-Truckload) pricing for shipments that do not require a full 48- or 53-foot trailer – saving you money without compromising delivery speed or reliability.
Outsource Peak Warehouse Needs
Many businesses, especially those in the manufacturing industry, experience peak times as well as dips in their production schedule. Everything from economic growth and decline cycles, to major holidays, can affect your company’s fluctuating storage needs.
Owning and operating sufficient warehouse capacity to accommodate peak production can mean low space utilization when operations are slower. When you outsource your warehousing and storage needs, you only pay for extra capacity when you need it, rather than for the entire year.
Kalamazoo’s Best Logistics Services
The outsourced logistics solutions provided by CMS help ensure that you keep costs low by getting higher productivity out of fewer assets.
Outsourcing your supply chain transport and storage to a third party ensures access to the best equipment, the most advanced technologies and the most highly skilled labor – all at a fraction of what it would cost to “do it yourself.”
Lower your overall logistics costs, and improve your supply chain efficiency, with Clark Logic’s logistics services. Call us today to see how our third party logistics services can improve your company’s bottom line!