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How to lower your transportation costs

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In the business world, it is always a good time to try to optimize costs while maintaining the quality of service. Even more so at times like the present, in which any waste in the processes becomes doubly serious. At Transgesa, as logistics operators, we always look at ways to reduce transportation costs; ours and those of our clients.

These are some of the sections that you can review in your logistics to reduce the transportation costs of your company.

How to reduce your transportation costs
standardize sizes

Pallets are surely one of the most important, yet quietest advances in the world of transportation. Logically, the measurements of the most widely used pallets, such as the European (80 x 120 cm base) and American (100 x 120 cm base) types, are not a whim. The most common width of trucks and the measurements of the pallets complement each other to try to optimize each trip as much as possible, transport the greatest amount of merchandise

These measurements and their multiples should help you use the most appropriate type of pallet. For example, a double pallet can reach up to 240 centimeters, occupying the entire width of the truck. But shipping a 200 cm long pallet will probably also cost you twice as much as a standard pallet, but you will load less merchandise. In some cases you will not be able to optimize it (for example, because the merchandise is a piece of certain dimensions).

But in other cases you can take advantage of it to increase the amount of merchandise transported. Or be more careful to refer to standard measures and not unnecessarily incur extra costs.

Transit times and lead time

Knowing your lead time can also lead you to reduce transportation costs. Lead-time can be defined as the total amount of time that elapses from the start of the production process of an order until it is delivered to the recipient. Having control of your lead time can allow you to opt for cheaper shipping methods, instead of express.

Reducing inventory costs

At this point you should look at the overall costs of your logistics and not just the transportation costs. During the last decades, companies have clearly leaned towards reducing stocks, which implies a larger quantity of shipments in smaller batches. The balance of costs will be between the expenses caused by the storage and the worst relation cost/kilo transported in the smallest shipments compared to the large volumes.

Spend more on transportation

To finish we want to do it with a contradiction, increasing your transport costs. In many cases, transport companies will have a relationship with your end customer, taking your products to him. His service is, more and more indisputably, an inseparable part of how your company is perceived. The quality of your logistics operator is part of the quality of your company.

For this reason, optimizing your lead time, delivery times or the dimensions of your order to optimize transport costs does not mean opting for the cheapest supplier. Precisely you must do all those things to avoid trusting your costs to the latter.

In short, is there anything more expensive than a dissatisfied customer or a lost customer?

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