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Supply Chain Consulting

November 11, 2010 Leave a comment Go to comments

A logistics consulting engagement will start with a focus on a few keys areas of the supply chain. The most important benefits to working with a logistics spend management consultant will be to reduce costs and make the process more efficient.

The Planning Process: How orders and shipments are planned has a direct impact of shipping costs. Using efficient packaging, getting the maximum volume of product on a pallet, and the most cube on a truck all impact cost on a per unit basis. Combining multiple small orders on a larger full truckload is one way to build efficiencies into the load planning process. Using logistics software for route optimization is a way to add efficiency in to the load planning process.

Trucking Companies: The rates paid to carriers are a direct cost for shippers and negotiating favorable rates is a way to reduce the logistics costs for a company. Knowing and benchmarking shipping costs are important for a shipper and having access to that data is vital. Rates can be kept current through periodic RFP (Request for Proposals) exercises and lane analysis. Always be pushing for better, more competitive rates and best in class service.

Social Media and Frozen Food Fulfillment.

Freight Audit and Payment and Data: Automating the process of approving and paying invoices is a way to reduce freight costs as well. Aside from the benefits of more and getter logistics spend data, it is a process that is not done very efficiently in house and typically can be done more efficiently through a third party or by employing logistics software.

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