Resolving Your Company’s Hidden Logistics Costs/Challenges

Melton Logistics – 08/08/2024

Every disruption along today’s extensive supply chain can create a plethora of challenges in other areas, some of which can impact your business financially. That’s why it’s so important to identify problems slowing down your logistics operation that may have gone unnoticed or ignored, costing your company both time and money.
Melton Logistics, having been in business for now over 21 years, has spent a great deal of time detecting and resolving these issues for our shipping partners.

Undoubtedly, there is a tendency for certain areas of the supply chain to attract a disproportionate number of serious disruptions that waste time, energy and money, adding costs and detracting from your company’s profitability. If you’re not sure where to begin unearthing these hidden logistics issues and costs in your supply chain, start by taking a careful look into any of these three areas:

1. Inventory – The number of logistical problems that stem from inaccurate inventory is astounding. Stockouts, overstocking, fulfillment delays and even reduced order fulfillment accuracy can all trace their origins back to simple inventory errors. Shippers should regularly evaluate their existing inventory management processes, noting trends within their respective markets allowing them to avoid recurring problems, and steer clear of chokepoints.

2. Route Planning – Efficient route planning is paramount to delivering consistently profitable shipments. Not optimizing routes or planning current and future shipments leads to greater out-of-route miles, increased fuel costs, longer or missed delivery times, and ultimately, unhappy customers. Route planning also allows you the best opportunity to anticipate inefficiencies that might limit your supply chain and further allows you to strategize accordingly. Many 3PL’s, including Melton Logistics, can assist with route optimization to facilitate shipment forecasting and devise the fastest, safest route for every delivery.

3. Communication – In any industry, but especially that of logistics, clear communication is the key to running efficiently and keeping costs in check. Contrarily, without this necessary component, instances of mishandled freight, missed delivery windows, and other failures that increase cost, increase in frequency. Please consider all the dashboards, applications and other tools that you utilize through the course of your day to connect directly with your suppliers, manufacturers, distributors and retailers. Is there a dedicated representative for each? How many different communication channels are in use? What are they and how do you know that they are working as intended? Learning to measure the quality of your communications will reduce, if not eliminate, most disruptions before they can even take shape.

Strategies for Addressing Unseen Challenges

Just identifying long overlooked or ignored logistics problems doesn’t correct the issues. Shippers and carriers must also eliminate these problems from reemerging. One of the best strategies for fixing these hidden logistics issues is to invest in the right technology. For example, advanced inventory management systems are now providing businesses with the tools and software to allow for more accurate end-to-end tracking and demand forecasting. It delivers real time data to prevent stockouts and excess inventory. Similarly, GPS tracking and route optimization algorithms are helping companies streamline customer delivery routes, which in turn reduces transportation costs providing for more efficient deliveries for your customers. 

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Overcome Supply Chain Challenges with Melton Logistics

Not many emerging companies have the resources to invest fully in these systems. In fact, in today’s business environment, most companies don’t have the personnel resources to dedicate to the issues. Instead, they turn to 3PLs like Melton Logistics for assistance. A combination of 21 years of transportation experience and technological investment to assist in providing our customers with these cost-saving measures are major contributing factors leading to the high demand for 3PL services. As a full-service logistics company, Melton Logistics can both accelerate your business’ ability to scale while concurrently saving money by removing each of the hidden efficiencies weighing down your supply chain. If you suspect that unseen issues are limiting your supply chain’s effectiveness, reach out to Melton Logistics today.

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