How To Reduce Transport Costs

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Transport accounts for a quarter of UK greenhouse gas emissions. Looking for new innovative ways of transportation and encouraging companies to invest in lower carbon vehicles are detrimental for the well-being of the environment and UK economy.

Based on PWC’s Logistics Report 2014, the UK is the world’s leading e-commerce country, with growth now coming from increased frequency of online purchasing. We predict online sales will be 25 per cent of non-food and 10 per cent of food in the UK by 2018 and that tablet and smart phones will account for 25 per cent of online retail sales by 2017.

There is certainly a challenge to be able to transform the way businesses and manufacturers function nowadays, but also an opportunity when it comes to more effective logistics operations.

How Business Can Make Supply Chain More Effective

1. Measure and analyse your current transport activity

Do you have your own fleet of trucks to deliver your products? Or are you using external logistic services? Investing in your own transport management system will help you track accurate data in regards transport costs.

CBS Packaging have invested in their own transport fleet since the beginning of their trading, making sure their customers receive orders on time every time. Read more about CBS Packaging’s transport capabilities here: http://www.cbspackaging.co.uk/cbs-acquire-new-truck-fleet/

2. Care for the environment

It’s bad enough that mankind has been using so many forms of transportation. We use multiple ways of transporting goods on a daily basis and also use cars and public transport for personal needs. Companies can prevent further damage by planning their deliveries more efficiently. Some ideas to consider are:

  • Driving respecting the Highway Code
  • Invest in vehicles with lower carbon consumption
  • Package goods more effectively
  • Create lightweight products

3. Optimise routes

Repeat deliveries to a certain customer can help you optimise your journey by finding faster routes and decreasing the risk of congestion. This can also maximise reduction in fuel and fleet costs.

4. Single sourcing

In the manufacturing industry, there are so many different supply chains and competitiveness in all industry sectors. Purchasing departments are always looking for ways of cutting costs and one way to achieve this is by buying products from a single vendor.

5. Be flexible and create valuable relationships

To be profitable you have to make your customers profitable. Try keeping in mind your transport costs when putting an order through and see if you can propose a collaboration in sharing transport. Or you may be able to offer an extensive range of products to the same provider, then you can reduce transport costs further and create a better relationship with your customer.