How to Reduce Logistics and Supply Chain Costs

How to Reduce Logistics and Supply Chain Costs

Logistics management requires proper planning and good decision making. Without the two, there is a tendency for deadlines to be missed and products to suffer from damages which will lead to higher expenses.

As today’s demands fluctuate along with the changing business climate globally, it is important to implement strategies that can help reduce logistics and supply chain costs.

Here are some of the practices that you need to follow to stay on the right track.

5 Tips to Lower Logistics and Supply Chain Expenses

1. Consolidate Your Shipments

When safety and cost-effectiveness are a concern, FCL (full container load) is more preferable to LCL (less than a container load). With FCL shipping, your goods are loaded in a space that isn’t shared with other loads and your shipping specifications or requirements are properly addressed.

FCL shipment allows consolidation of goods including products from various suppliers that will be delivered to the same destination. Aside from proper and safe handling of goods, it is also a cost-effective option as you share the total costs with other suppliers.

2. Make Cargo Insurance a Priority

Your efforts in planning your logistics and settling for strategies that can save you more money may be put to waste if you will not insure your cargo. This is a smart option that may mean added cost but will actually protect you from further expenses when uncertainties affecting your goods arise.

3. Integrate Your Platforms

Operations would be more efficient if everything will be integrated into a platform that can easily be accessed by authorized persons. This will eliminate issues on duplication of activities that will only consume time and resources. With a unified platform, duplication of efforts will be avoided and you can expect improvement in your efficiency and elimination of errors so you can use your money and time more effectively.

4. Make the Most of Your Assets

Some companies invest in various resources then make the mistake of not fully utilizing them. One way to reduce logistics and supply chain costs is by ensuring that assets that affect your revenue such as your fleet and facilities are properly utilized. Optimize your processes. For instance, you can work up the delivery schedule of your fleet to ensure that all vehicles will be put to use each day so that idle time will be avoided. This also includes avoiding unnecessary investments. Having your own warehouse may seem ideal but only when you have a constant need for it. Otherwise, do not buy or rent additional space when it will be left unutilized during most parts of the year.

5. Consider Outsourcing

There are certain aspects of your business that are better outsourced in order to reduce costs and make the most of your manpower. Transportation and storage are two of the areas that you should consider outsourcing. There are courier companies that offer a wide range of shipping options to suit your business needs. Aside from that are the warehouse management services that can take care of your storage and distribution needs so you can improve your operations.

Discuss your requirements with a reputable courier company that can adhere to your specifications particularly when it comes to packaging, product handling, temperature control requirements, and others.


In any business, it is important to eliminate unnecessary expenses and this can be done by optimizing your processes. You can reduce logistics and supply chain costs through some modifications on what you do and by integrating options that can contribute to operational efficiency.

If you are looking into partnering with a courier company in the Philippines, check out Worklink Services, Inc.  We offer logistics and warehouse management solutions and have been providing efficient, effective and reliable courier, forwarding, trucking and logistics services to various domestic industries since 1999.
Contact us today so we can help you.