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How to Optimize Logistics and Save Money

Time is moneyOptimizing logistics and ultimately reducing costs are both at the top of the priority list in 2015. Let’s break down the factors affecting increased logistics spend, including downtime, inefficient routing, and the completion of paperwork, before discussing how transportation management systems, like our TabNet technology, solve many of these problems.


Factors that Drive a High Logistics Budget

Was your logistics budget excessive in 2014? If so, it’s important to uncover your expenses and discover ways to efficiently cut costs. Here are a few areas where you may be losing money:

  • Downtime. In any business, downtime is expensive. When you’re paying for labor, materials, gas, and all other factors that go into sending a product from point A to point B, time is money. Too much downtime prevents you from maximizing the resources you have on hand.
  • Inefficient routing. The reason behind UPS, FedEx, and the other major shipping companies’ successes can be found in efficiency. They are able to make the most out of each delivery route and never waste time, gas, or mileage. Are you using inefficient routes?
  • Manual paperwork. There is no excuse for doing paperwork by hand with the abundance of technology available at your fingertips. Electronic document imaging (EDI) and other solutions allow you to save time and resources. Performing, storing, and tracking manual paperwork is costly.

Ways to Reduce Logistics Spending While every business and industry is unique, there are a few methods that are widely used to reduce logistics spending and increase efficiency. Here are three of the top solutions:

  • Shared warehousing. Are warehouse costs too expensive for your budget? Do you only use a fraction of the space you’re paying for? Shared warehousing could present you with a cost-effective solution. By trading out the typically high fixed cost of leasing warehouse space and moving into a shared space that operates on a variable cost structure, you end up only paying for what you use.
  • More accurate forecasting. While your company may not have the Big Data resources and algorithmic capabilities needed to integrate a full end-to-end anticipatory shipping model, you can still pursue accurate demand forecasts that allow for just in time (JIT) inventory. You can realistically remove thousands of dollars of expenses next year with better forecasting.
  • TMS solutions. If your company is using an outdated TMS solution – or not using one at all – you are certainly behind the curve. A progressive TMS solution that offers components like EDI, order management, integrated accounting, GPS tracking, and more can save money, increase efficiency, and build stronger partnerships.

GTG Technology At GTG Technology, we are one of the leaders in transportation management. We offer intermodal management systems, brokerage management systems, drayage management systems, and more. Additionally, our TabNet truck-based tablet management system allows our clients to see everything that’s happening within their business as it occurs in real time. For more information on our solutions and services, contact us today! We would be happy to schedule a complimentary one hour demo to show you how our solutions work from start to finish.

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