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3 Tips to Reduce Distribution Costs

One of the best ways to improve your corporate bottom line is to get distribution costs under control, and fortunately there are some pretty straightforward things you can do to achieve this.

But before you get into a cost-cutting frame of mind, however, you need to understand where to focus because making the right cuts in the right areas will ultimately lead to the greatest returns.

Make Better Use of Space

Making the most of the space you have will save you money at the end of the day. As you no doubt already know, storing inventory and supplies in your warehouse comes at a cost. Assess whether or not you’re making the most of the space you have. You just might discover that you could save some money by finding a space that’s more in line with your actual needs.

Automate

airliner with a globe and auto loader with boxes

Automating processes in your warehouse isn’t part of some fad or shady trend. It can actually help you to accomplish your goal of reducing supply chain costs. Have a professional come in to do an assessment of your operations so that you can get suggestions as to how you can automate your operations to make things more efficient.

Streamline Ordering Process

You need to make your ordering process as efficient as possible. This means at least a couple of things. Use a single software package for completing requisitions or else you might encounter situations where employees using different applications end up ordering too much of specific products or inventory supplies.

Another thing to keep in mind is that you need to implement an approval process so that nothing gets ordered without the consent of designated officials.

It is definitely possible to reduce distribution costs, and the suggestions above will get you started down that path. You could very well be a few tweaks away from running an efficient supply chain, and you owe it to yourself to critically and objectively assess your situation to determine what, if any, changes need to be implemented.

Meraki Consulting offers training and consulting to help you cut down on warehouse costs. For more information about our services, or to book a consultation, contact us on +27 10 595 4934 or at info@merakiconsultingza.co.za.

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