For any retail or inventory handling business, there is nothing more important than the efficient and cost-effective movement of products from one part of your supply chain to the next.
As such, it should be no surprise if we’re willing to invest in keeping it as strong and free-flowing as possible. However, that doesn’t mean that you have to accept any cost. Here, we’ll take a closer look at ways to control the costs of your supply chain without seeing a decrease in quality.
Manage your warehouse space more effectively
A lot of the costs of the supply chain are going to come down to not only the money that you spend to maintain your storage space but the opportunity cost that comes with not having space for items you could otherwise get selling. Warehouse management from teams like Noatum Logistics can help you open more space, allowing you to make room for more products and more profits.
Inspect which suppliers you’re working with
When we’re talking about bringing products into the company for resale, then the single best way to make sure you’re not paying more than you should is to look at your suppliers and partners. Compare your existing suppliers with alternatives such as Shonn Brothers to see who offers the better deals on the products that move through your chain most often. There are advantages to compare besides price, but often it’s th bottom line that decides things.
Be picky with your drivers too
If you’re working with a fulfillment company, then the process of delivering your goods might be out of your hands. However, you can always choose alternatives to replace them if you think they’re costing you more than you think. Telemetric GPS devices can help you track your drivers and service providers over time to get an idea of how efficient their driving deliveries are.
Reducing loss where you can
Not all money spent on your supply chain is necessarily well spent. When it comes to items that go missing, get stolen, or get damaged, that’s wasted money. There are a lot of ways to reduce loss in the warehouse and transit systems, but inventory management systems like Brightpearl can be one of the most effective. By tracking the movement of every item through the chain more effectively, you can spot where loss is more likely to happen, helping you narrow down on root causes that can be solved.
Watch customer demand
You don’t want to spend more on your products than you should. Not only does this mean choosing the most cost-effective supplier, but it also means capturing accurate data on customer purchases of each item, so you can know which item you’re more likely to have to order more of, and less likely to order items that won’t sell for some time but will simply sit around the warehouse.
Cost-effective supply chain management is all about keeping an eye out for the best partnerships, as well as the best technologies that can ensure the same level of quality while helping you save.
