This article offers the reader useful information on how to reduce the cost of delivery, which is a necessary expense for many small and medium businesses.
For a large percentage of businesses, delivery is part and parcel of the sales process and if you are not well-organised, your delivery costs can soar. When things get tough, it is time to look for ways to reduce running costs and here are a few tips on cutting your delivery costs.
GPS
If you manage a fleet of delivery vehicles, the right software can put you in direct contact with all drivers and from a central command centre, you can see where your trucks are going, how fast, where they stop and for how long. Better still, use the affordable courier delivery Melbourne or your city offers. Go for an established award-winning business, and make sure that your customers can check online for the status of their goods.
Route Planning
There is software that can plan delivery routes using the shortest possible routes and it can be programmed to include variables like weather, traffic congestion, toll roads and accident updates. Every kilometre costs money, so you need to arrange delivery schedules accordingly, which saves time, fuel and money. Of course, using a 3PL provider eliminates having to route plan. The company collects the goods and it gets delivered, taking away all the hassle.
Use A 3rd Party Logistics Provider
Probably the cheapest way to fulfil orders is to hook up with a leading 3PL outfit, who can pick, pack and deliver far cheaper than you could, plus you don’t have to invest in resources. Simply forward orders to your logistics partner and everything will be picked, packed and delivered. They have a wide range of vehicles and many offer same-day delivery. Rates are reasonable enough to attract customers.
Shop Around
The 3PL sector is huge and if you think your current provider is expensive, an hour of Googling will find cheaper alternatives. Comparing rates has never been easier and if for any reason, you are unhappy with your current provider, take a look at their rivals and see what they are charging. Even a small reduction adds up over time and you might get further discounts if you ship regularly.
Upgrading Delivery Vehicles
Old trucks tend to guzzle fuel and a medium-sized fleet of trucks would be wasting a lot of energy. If you manage a fleet of vehicles, take a look at fuel consumption and you might be surprised at what you find. Of course, another alternative is to contract out all of your logistics to an established 3PL company, which would be the cheapest way to fulfil orders. Think of the money you would save on vehicle maintenance, not to mention driver salaries and all the liability that comes with direct employment. There are very strict vehicle emission laws here in Australia and the last thing you need is a few tickets for pollution.
Cutting costs should not lead to any impact on the business and we hope that the above information helps you shave a few dollars from your delivery costs.
