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The cost of logistics and supply chain is a critical component of the total expenses for any company. The more efficient your supply chain is, the lower the costs will be. It’s a huge contributor to your bottom line, and it can be difficult to manage. But it’s important to make sure that you are taking steps to reduce these costs. In this article you could learn how to reduce supply chain cost and logistics cost.

In a recent survey of over 1,000 professionals working at companies with more than 500 employees, 72% were not aware of how much their supply chain and logistics costs were costing them each year. This is surprising because it’s a critical aspect of running a business. The same survey also found that 44% claimed that they don’t have access to the data they need to know what their supply chain and logistics costs are so they can plan accordingly.

Read on to find out some ways that you can reduce your operating costs by making your supply chain and logistics practices more streamlined and effective.

Improve customer satisfaction

The first step to improving customer satisfaction is to ensure that you have a solid customer service organization. If a customer has a bad experience, he or she is more likely to share the story with others and fewer of them will go back for more business.

In addition to having a good customer service organization, it’s also important to have an efficient supply chain and logistics system in place. Having everything in line helps reduce costs and improve productivity by reducing the amount of time spent on mundane tasks such as paperwork and waiting on deliveries.

One more step to improving customer satisfaction is to make sure you have a good product. If you do, then you can focus on the next step: making sure your customer is happy with it.

That means ensuring that the product is what they want and that they’re getting what they paid for. You should also check in with them regularly to see if there’s anything else they need or if there’s anything else you can do to help them.

If you’re already doing this, then great! It means that your customers are already satisfied, so all the work has already been done! You just need to keep doing what you’ve been doing and make sure that it continues to satisfy your customers’ needs.

Improve transit timelines

Logistics costs are the cost of transporting goods between a supplier and a customer. The more time it takes to ship an item, the more expensive it’ll be to move. This is because time is money, and shipping companies charge accordingly.

But with the right strategies, you can minimize travel time and make sure that your goods get from A to B as quickly as possible. Here’s how:

1. Use e-commerce fulfillment centers
2. Use ULDs for shipping small packages
3. Hire a third-party logistics (3PL) company to handle your freight
4. Minimize transportation costs by using air freight or sea freight

The average distance traveled by a product from its point of origin to its point of consumption is about 4,000 miles. The distance between the factory and the customer’s door is less than half that, but it can represent up to 10 percent of total supply chain costs.

According to the U.S. Department of Commerce, logistics costs in the U.S. are estimated at $1 trillion annually, with another $850 billion spent on freight movement within the country and another $400 billion spent overseas for exports and imports.

Consolidate shipments

The most common strategy of how to reduce supply chain cost is consolidating shipments across multiple carriers and vendors. This can be done by using a network of contract carriers or a single point of contact with the carrier.

A network of contract carriers allows you to take advantage of volume pricing on freight and warehousing services, which helps to reduce your overall costs and improve cash flow. The downside is that you need to manage multiple contracts with various carriers and vendors, which can be difficult for small businesses.

A single point of contact with the carrier allows you to consolidate shipments, exposure, and risk from multiple contracts. This allows you to focus on managing your contracts and getting the best price possible from each one.

A lot of companies are looking to reduce supply chain and logistics costs by consolidating their shipments. The idea behind this is that by consolidating your shipments, you can reduce the amount of inventory that you need to store and manage. That means less space for items, fewer inventory costs, and less time spent managing all those things.

Use data-driven decisions

You can use analytics to reduce your logistics costs by identifying where you are spending money, and why.

You’ll want to identify where your company is spending money in order to figure out what areas could be improved. You can do this by looking at the data from your supply chain or logistics processes.

Look at how much it costs to get that part of your product from A to B. You’ll need to know the cost of shipping, handling, and packing materials, as well as any other fees associated with the process (such as customs fees).

You may also want to look at which parts of the country deliver the highest volume of goods — this will help you decide if you should have more distribution centers in certain areas of the country.

Reducing supply chain and logistics cost

There are many ways that you can reduce logistics costs and therefore improve how you run your business. One effective way not mentioned above is to consider outsourcing your logistics services. By doing so, you can partner with a reliable company that is an expert in the logistics field and can help you gain more by spending less.

You can talk to us here at Soul Logistics to know about how we can help your business propel forward by reducing your costs in moving your products. We are experts in the field and we are always ready to help fellow business people.

Contribution of logistics to the economy is important. The term “logistics” first appeared in English during the early 19th century, with the meaning of “the branch of military science dealing with supply and distribution.” The term was later adopted by other branches of the military.

Logistics, or supply chain management, is the discipline concerned with planning, coordinating, and controlling the movement of any manufactured or other product from the point where it is produced to the point where it is consumed. Logistics involves planning, organizing, training, and equipping to ensure that products are delivered to their destination on time, at a cost that meets expectations and within legal requirements.

Although logistics can be considered an independent field within business management, it also has strong interconnections with many other fields such as economics, engineering, and finance. In addition to these disciplines, logistics is closely related to operations management and marketing because it involves planning for all aspects of supply chain management including production planning, transportation optimization (warehousing), inventory control/management, and customer service delivery.

To the present day, the logistics industry plays a very important role in maintaining the balance between trade and commerce throughout the world. One of the critical areas that are directly affected by logistics is the economy. Almost all the time, these two will always have a relationship with each other. This article will aim to explore the relationship between the two and how the logistics industry directly affects the world economy.

Logistics generates jobs

Considered to be one of the biggest industries in the world, freight forwarding is one of the biggest job generators in the whole world. In the United States alone, the logistics industry employs millions of people. In 2021, even when the economy is still recovering from the COVID pandemic, job posting sites estimated a total of 70,000 new job openings for individuals who want to join the logistics industry.

The logistics industry is also considered to be one of the best career choices in this decade. The Bureau of Labor Statistics in the United States projects a 4 percent growth of jobs related to logistics in the next ten years. This figure agrees with the trend expected from other major industries in the country.

This means that the logistics industry is one of the few fields that will need more talent in the coming future. Unlike other sectors such as food and beverage and finance which showed a decline in employment opportunities over the last 5 years, the logistics industry shows a more promising future.

Logistics is a very important part of the retail sector

With more and more people engaging in online shopping for almost everything that they need, the demand for freight movers will only increase in the coming years. Right now, people are gradually moving towards subscription-based consumer goods. These purchases are those kinds where produce or fast-moving goods are delivered to your home at predetermined schedules. This and the increased demand for online shopping will only cement the need for more logistics players to help the retail sector.

But even before e-commerce became a thing, freight companies have already been an important part of the retail economy. It will be very impossible for the retail market to exist without a robust and dependable logistics industry working seamlessly in the background. Back when the world was still starting worldwide trade, people had been relying on trains and ships to move different goods across the whole world. The practice established the retail market that we are familiar with today. Developments in logistics technology enabled different companies to offer their goods and services to a wider market, therefore, making the price better for the consumers.

Logistics enables worldwide trade

It would be impossible for a truly worldwide trade to exist without the logistics industry. If your country is relying heavily on exports and imports, it will cause a very big issue if the logistics trade suddenly ceases to exist. Many states rely on different products that they import from other producing countries to sustain the food of their people. For example, countries in Asia export coconut oil to western countries since coconut trees cannot thrive well in their climate. This is just one example of how logistics can help in enabling a truly worldwide trade where products can be made available everywhere.

It’s important to understand how logistics helped in making global trade successful. The development of modern methods for transportation has transformed how goods are transported globally. However, this development also created challenges for businesses due to the high costs involved in shipping goods across oceans and continents.

The rise of containerization made it possible for companies to ship goods efficiently and reduce costs by removing the need for manpower during loading and unloading

operations at ports. It also made it possible for companies to send multiple containers on one ship, which reduced turnaround time from months to days.

Contribution of logistics to the economy

The logistics industry is a key part of the economy, even though it is often undervalued. It has been around for centuries but it is only in recent years that it started gaining popularity because of its contribution to economic growth. The logistics industry plays an important role in the global economy as it makes sure that goods from one country reach their destination as soon as possible.

Logistics helps in making sure that every product gets to its destination without any delays or losses during transportation. In this way, we can conclude that logistics plays an important role in making sure that the global economy continues to be successful.

If you are working in the logistics industry, there might be a lot of industry jargon that you will encounter along the way. One of these terms might be “LTL” which stands for less-than-truckload freight. If you are starting a career in logistics or are a business owner who wants to learn what is LTL Freight, this guide is for you.

What is LTL Freight?

As mentioned earlier, LTL stands for less-than-truckload. It is a type of shipment that is fairly small. It is the opposite of FTL or full truckload shipment. Parcel carriers are usually classified under LTL since they are carrying loads that can be grouped into small units, usually less than 150 pounds each.

If your business does not require you to transport large shipments that require a full truckload, LTL is the best method for you. Using LTL will help you reduce the cost of your shipment while giving you the advantage of moving your goods without most of the time constraints.

The primary benefit of less-than-truckload shipping is that it provides flexibility for the shipper and receiver of the goods. The shipper does not need to have large trucks available at all times; rather, he can use a smaller vehicle if needed or want to transport larger shipments a few times per year instead of every week. The receiver does not need to wait on another shipment from an unrelated source before receiving his goods; instead, he can fill orders faster with less hassle.

How does LTL Freight work?

LTL freight is the most common type of freight shipping. It’s used for large shipments that don’t need to be carried on a truck, such as appliances or heavy machinery. LTL freight is usually scheduled to arrive at your destination within 10 days after being shipped, but it can take longer depending on the carrier and the shipping method you choose.

There are at least two main types of LTL services:

Direct LTL Service – This type of service has its dedicated rail cars and is billed as an alternative to air freight. The advantage of this option is that it can be very cost-effective. However, it’s not always possible to reach the speediest shipping speeds with LTL shipments, so you may need to factor in extra time for transit.

Tailored Service – This option allows you to customize your shipment based on your needs and budget. You’ll have more control over where your goods are going and how they’re being transported, but it also means that there’s less flexibility when it comes to timing and price.

LTL shipments are typically shipped in containers, but they can also be transported in less-than-truckload trucks. The shipment will stay within one container or one truck, so there’s no space for anything else.

You can choose from several different carriers for LTL shipping. Some offer door-to-door service, while others use refrigerated vans or railcars instead of containers. You’ll want to make sure you find out which carrier offers what kind of service before you book an LTL shipment with them — this will save you time and money later on down the road!

What is the difference between less-than-truckload (LTL) and full-truckload (FTL) freight?

LTL freight means that only a fraction of the goods is shipped at one time. The rest of the shipment is still in storage and will be shipped later on.

The LTL freight method is less expensive than FTL because it does not require a complete load of goods to be shipped at once, which saves on fees and shipping costs. However, you can’t count on this method being available at all times, as many factors can cause an LTL shipment to be canceled or delayed.

FTL, on the other hand, is when a truckload’s worth of cargo is sent out at once. This method ensures that your shipment is complete and ready to go at all times. It also makes it easier for customers to track their orders, which means they can better manage their business operations with less hassle.

In short, LTL freight is when the shipment is loaded into containers and transported from point A to point B. LTL freight can be either international or domestic.

FTL freight is the full movement of a shipment from origin to destination. This includes loading the goods onto a truck or railcar and transporting them to their destination.

What are the benefits of LTL shipping?

LTL shipping is a convenient way to ship lightweight items, such as furniture and custom-fitted items, between two points. It is also used for small-scale commercial deliveries and can help you save money. Here are some benefits of using LTL shipment:

Convenience. Needing to move your freight from one point to another? Not only is this costly, but it also takes time. By using LTL shipping, however, you can move your freight quickly and easily without having to worry about the costs or time involved in moving by the truckload or any other means of transportation.

Value-added services. If you’re in the market for more than just the bare essentials, LTL shipping could be a great option for you. You can add value-added services such as packaging materials and other supplies that are typically not required by truckload carriers if they don’t offer them themselves. This will allow you to take advantage of these services while saving money on other aspects of your shipment.

Lower rates. Larger shipments can result in higher costs for the shipper, so it makes sense to take advantage of competition among carriers. Shippers who use LTL services are often able to save money on transportation costs because they aren’t obligated to use one particular carrier.

Flexibility. With LTL, you can ship small amounts of cargo at any time and place, instead of having to wait until your goods are ready before sending them out. You don’t have to worry about inventory levels or other restrictions that come with larger shipments.

Should I use LTL shipping for my business?

LTL is a shipping method that is used frequently by businesses. It’s an efficient way to ship small amounts of cargo, especially when you need to ship from one location to another. LTL also offers flexible pricing options and is often used as a shipping solution for smaller shipments.

When considering LTL for your business, there are several things to consider. First, how much cargo are you planning to ship? If you have a small order that does not require a full truckload, then LTL may be right for you. Second, what size container do you want to use? Larger containers will allow more items per shipment than smaller ones do but the cost of transporting the cargo in the larger containers will be higher than it would be if you had sent them in smaller containers. Thirdly, do you need to schedule your shipments in advance? In most cases, this isn’t necessary with LTL since the typical shipping time for this type of shipping is about five days but some companies require their customers to schedule.

If you want to know more about LTL and how it can be implemented for your business, send us a message today! Our team at Soul Logistics has been handling LTL and FTL shipments for our customers for many years and we will be happy to share our expertise with you.

Logistics business comes from the ancient time. So the history of the logistics business is very old. The word “logistics” originated from the french word “logistique” or “loger” which means storage. In the modern day, logistics is a business process that involves managing the movement of goods from point A to point B according to the demands of end-users or consumers. Whether we like it or not, logistics is already a part of our daily lives. If you are buying your groceries from the local supermarket, that means that you are already reaping the benefits of this ancient yet effective system.

Logistics might have changed the way it is done in the past hundreds of years but its core system is still the same. Let us take a short trip down the brief history of how logistics evolved into the multi-billion dollar industry that it is today.

Logistics in the ancient times

It is hard to pinpoint the exact origin of the logistics process that we know and use today. But, the oldest evidence seems to point to the Greeks and Romans. During these times where kingdoms and empires were mostly pillaging around the world and expanding their reach. To do this, these ancient rulers have to devise ways to effectively move their troops, war equipment, and provisions from one place to another. This was already considered a logistical practice in itself. However, this period was very unforgiving to our ancient counterparts as they have to endure and surpass many challenges:

• Vast distances – Most armies needed to travel hundreds of miles on foot or horse in ancient times to help in their war efforts. As the world at that period was less populated than it is today, many town centers are separated by vast distances from each other. Sometimes, it takes weeks for the troops to reach their destinations.

• Unpredictable routes – Unlike our carefully mapped out roads in the 21st century, ancient highways are filled with different types of challenges that make the trip more difficult. Sometimes, roads can be blocked by landslides that will add to the delay of the travel. Ancient armies are also vulnerable at night which is why they have to select specific stops along the route for camping. But even with all measures in place, many issues can still happen that range from enemy ambush or even animal attacks.

• Ancient equipment – We are very lucky that technological advancements gave us the best type of equipment for moving our goods today. Modern armies have planes, ships, trucks, and even helicopters to move anything over vast distances in a relatively short time. During the ancient period, a lot of armies are using horses and even elephants to move their cargo. For that time, it was the fastest that they could but still way more time-consuming compared to how we do it today.

• Premature system – Without a proper system in place, many logistical efforts in ancient times are plagued with problems. Today, we have computerized systems that are powered by machine learning and artificial intelligence to make our work faster. This technology was not even a dream then. Our forefathers relied on the earliest form of recording to make sure that they keep track of all the movements of their goods. 

Logistics in the middle age

Thanks to the established practices by the ancient rulers, kings in the middle age were able to inherit a simple yet effective practice of moving cargo and people. Though the system is not yet perfect, a lot had improved during this period.

Established routes for logistical operations made the efforts faster and safer. Regional areas of responsibility were also established and the early forms of supply chain management were already taking place.

Many middle age rulers started establishing castles in their whole empire that served as ‘hubs’ for transport and storage.

Logistics in the industrial age

Perhaps the biggest change so far to how logistical efforts are conducted came about during the industrial age. During the 19th century, modern technological inventions at that time were introduced to the public. This is when steam engines were finally working properly that they can already be used for different applications.

This age brought rails, and ships using steam engines. What once took months to transport can now be done within weeks. The world somehow became smaller. This series of events gave birth to shipping companies that some are even operating today.

By the beginning of the 20th century, most parts of Europe and the United States already has established railroad networks to move heavy cargo over vast distances. This further reduced cost and made different products accessible to almost everyone.

When the two world wars broke out, it stopped many developments during the industrial revolution. Most technology and research were diverted to the war. However, when the war was over in the 1950s, it brought a new wave of techniques and methodologies that further improved our worldwide logistics practices.

Logistics in the modern age

A lot of things have changed in the last 300 years. In the 21st century, the development in information technology has mainly dictated the changes that were implemented in the logistics industry. While it is true that we are still using the core systems that we did hundreds of years ago, it is way more easy, safe and fast today.

Information technology gave us new processes that provide seamless, fast, and reliable data. Modern web-based applications made sure that all individuals involved in the movement of goods and cargo have all the tools that they need to do their job right at their fingertips. Artificial intelligence and machine learning also enabled us to use vast amounts of data for making future decisions through the use of data analytics.

Modern infrastructure also paved the way for faster and safer movement of goods. New technologies in vehicle manufacturing gave us the best trucks, planes, and ships, that not only saved us cost but also provided tremendous savings through fuel efficiency while providing the fastest method of cargo movement.

What the future holds

A lot has changed in the world of logistics and a lot more can happen in the future. Research in sustainable energy and autonomous vehicles might be the way forward and everyone in the industry is excited to see where these new technologies will lead us.

Whatever the changes may be, logistics is still here to make sure that your goods are moved to where they are needed within the most effective management of time and resources. If you want to know more about improving your company’s logistics practices, talk with us today and explore how you can be more effective in this field.

Consumers in the United States, being the world’s largest consumer of fossil fuels took a sigh of relief as fuel prices finally falling in the US in recent weeks. After exceeding 5 dollars per gallon last month, the current average is now 4.5 dollars per gallon for regular gasoline across the country according to the American Automobile Association. But this price, though already a big decline from last month, is still 1.5 dollars higher compared to the same period last year.

This table shows the national average of gas prices in the United States as of July 15, 2022 Source: AAA.

Economists predict that prices will continue to go down in the next coming weeks but they are not sure how long this trend will persist. Global demand for fuel continues to decline due to the steep price in the last few months. With the dollar gaining over other currencies, prices of fuel will not experience the same decrease as it has on the US for countries who are importing fuel. With supplies still not recovering, it is still uncertain when the reduced price will continue to help motorists.

Why are fuel prices declining?

The demand for gasoline has been on the decline worldwide due to the higher price. In the US alone, jet fuel and diesel are down 10% compared to the same period in 2019 even before the start of the COVID pandemic. According to the Energy Information Administration, the low demand prompted gasoline stations to reduce the prices of fuel.

With the dollar gaining over other currencies in most parts of the world, it also made a big impact on the price of fuel. This makes traders who purchase fuel in international markets need to shell out more cash in order to make the same purchase a month ago.

Across the whole United States, almost all the states have shown a decline in prices with the current national average for diesel only at 5.572 dollars per gallon as of July 15, 2022, compared to 5.780 a month ago. However, this is still way higher than the national average from a year ago at only 3.267 dollars per gallon.

The national average for diesel is at $5.572 per gallon from $5.780 last month. The price  is still far from the $3.267 from the same period last year. Source: AAA

What can we expect in the coming weeks? 

Predictions are mixed from the economic field in terms of possible trends in the coming weeks. Some of the factors that are being looked into are the demand from consumers, economic activity in major economies of the world, and stabilization of supply.

As prices are still steep compared to last year, people are still not that confident to get back to the usual use of private vehicles. With China reporting a new spike in cases of COVID-19 and other fuel-importing countries, demand could still be more volatile than it already is. Supplies in the US have also not recovered due to the reduction of new oil exploration and refining facilities that would further affect the stability of prices in the coming weeks.

What are the effects of the drop in fuel supply in the logistics industry?

An expected increase in logistics activity

Many logistics companies have taken drastic measures in the past few months to compensate for the cost that went to high fuel prices. Some implemented cost-saving measures such as limiting areas of operation and extending delivery schedules to accommodate more freight movement while saving money on fuel.

With the decrease in fuel prices from the last week that is expected to go on for the next few weeks, logistics operators might be able to restore some of their services which will ultimately increase activities in the logistics industry across the United States.

Reduction of freight charges

In order to accommodate more deliveries while keeping business running, many logistics operators were forced to increase their costs in the past few months. With the fuel prices now stabilizing, many business owners can now negotiate better pricing for their shipments. However, these prices will not be as good compared to last year since fuel prices are still considered to be very high. But, any reduction in operating costs is good for business and this will definitely help logistics operators and business owners to formulate more competitive pricing.

Increase in demand for deliveries

With many people opting to stay indoors and the new trend of employees now working from home as a result of the COVID pandemic and the high oil prices, more people are choosing to have their needs delivered to their homes.

Many US companies are now ramping up their fulfillment methods to cater to both perishable and non-perishable items. You can basically order anything online nowadays from your nearest supermarket.

With delivery prices expected to reflect the savings earned by operators in reduced fuel prices, many people will be more tempted to order their needs online. This will be good for the logistics industry as is expected to cover the lost revenue from the last few months.

Effects of falling oil prices on the logistics industry

As fuel prices are just starting to go down, it provides a needed break to all consumers who rely heavily on goods delivery. This will bring a positive impact to both oil dealers and logistics operators as it will expectedly bring the demand higher. We can only hope that this trend will continue to improve in the coming weeks.

Almost all types of businesses need to have solid supply chain management (SCM) put in place to make sure that all resources are maximized during business operations. If you want to know more about supply chain management and how it can help your business, this article will explain it to you.

Supply chain management defined

Supply chain management is the process of planning, coordinating, and controlling the movement of goods from their point of origin to their point of sale. This can include the movement and storage of raw materials, inventory, finished goods, and transfer of goodsor materials from the point of production to the point of consumption. It’s a complex undertaking that involves many different people, processes, and systems. If you want to improve your company’s efficiency and reduce costs, supply chain management is a great way to start.

In a nutshell, SCM is the process of making sure that your business will have something to sell when customers want it. If you are in a retail business, you need to know and anticipate when a certain product will be needed and that knowledge will help you decide when to ramp up your inventory.

Making sure that there are materials and supplies available when they are needed is also as important as maintaining a healthy inventory level. Each item sitting in your storage is essentially money, and you should never overstock on items because money and resources can be used elsewhere to propel your business.

While there are many other factors involved in supply chain management, it can be broken down into three primary areas: planning, procurement, and logistics.

Planning – The planning phase involves identifying what products will be needed over the next few months or years to meet demand. This includes identifying product specifications, determining which suppliers will provide those products, and determining how much raw material will be needed.

Procurement – The procurement phase involves finding the right suppliers for each product step in the supply chain. It also involves identifying any necessary support services needed by those suppliers (such as transportation).

Logistics – The logistics phase involves ensuring that all components arrive on time at their destination (the last link in the supply chain). It can also involve managing inventory levels and tracking progress along the entire distribution chain from the beginning until the end-of-life cycle.

Supply chain management is a useful tool for businesses because it allows business owners to maximize product quality while minimizing waste and transportation expenses. In addition, it can help businesses improve communication between departments and streamline workflows. Here are four reasons why supply chain management is so important for your business:

Cost efficiency

Many industries have high transportation costs because they have limited access to distribution centers or warehouses. By using efficient distribution methods, you can reduce these costs significantly by ensuring that your products reach customers quickly without having to travel long distances.

In addition to reducing the cost of distribution, you can also reduce inventory costs. Stockpiling inventory can be costly, especially if you need to store it in a space that is not accessible by customers or employees. The more accessible stock is, the more items you will sell per unit of time and the more money you will make.

Increase productivity

Supply chain management is all about improving the efficiency and effectiveness of your supply chain. Supply chain management makes it easier for employees at all levels of an organization to communicate with each other about orders and shipments. It also helps you identify problems in the supply chain, including delays or shortages of goods, so that you can solve them before they become serious problems.

Supply chain management also helps you keep track of inventory levels and costs, which allows you to make more accurate decisions about how much money to allocate toward marketing and advertising, or whether it’s better to invest in new equipment or software to improve productivity.

Saving time on inventory management

Supply chain management has become more important in recent years due to the growing importance of technology in business. This means that many companies are looking for ways to streamline their processes and cut down on waste.

Managing inventory is a big part of supply chain management, but it’s not the only one. It also involves managing the production of goods and services, shipping products to customers, managing customer relationships, and more.

The process of managing inventory requires time-consuming paperwork, which means less time spent on other tasks such as improving customer service or handling customer complaints. It also affects warehouse workers’ ability to move inventory around.

When you have robust supply chain management in place, this system will ensure that you can manage your inventory properly and only allocate resources wherever they are most needed.

Provide better pricing

Supply chain management is a process that involves the management of all aspects of the production and distribution of goods. This includes managing the relationships with suppliers, as well as analyzing, comparing, and selecting products to meet your business goals.

Supply chain management has been a vital part of the business since time immemorial, but in recent years it has become more important than ever before. In fact, many companies have dedicated entire departments just to supply chain management because they understand just how important it is to have systems in place that ensure maximum efficiency when it comes to getting products from suppliers to customers.

Supply chain management can help your business by providing better pricing for your products. By analyzing your costs and taking into account sales margins, you can determine whether you are being charged too much money for what you are selling. If so, then you may need to negotiate with your supplier for a better deal.

Supply chain management helps companies reduce costs and improve efficiency, while also making sure that they are getting the best possible price for their products. In addition, it helps them make better decisions about what products they should be

offering and how much they should be charging for them.

Importance of supply chain management for your business

No matter the size of your business and whatever industry you might be engaging in, proper supply chain management is necessary in order to maximize your resources and minimize your expense. This is a department that you should take a look into and look for ways to improve if you already have one.

Soul Logistics can help you in streamlining your supply chain using our knowledge obtained from many years in the logistics industry. Talk to us today and let us help your business.

According to data from the Council of Supply Chain Management Professionals’ annual State of Logistics report cited by The Wall Street Journal, US companies spent a staggering $1.49 trillion on shipping costs of goods in 2017. That is up 19% from the data gathered in 2008. This includes all types of shipping from air, land, and last-mile deliveries.

If your business relies heavily on shipping companies to move your products across the country or around the world, there are many ways for you how to reduce shipping cost incurred in shipping. Read on and find out where you can cut costs and optimize your supply chain.

Ship when demand is low

Each logistics company has a limited number of vehicles to transport products. During peak seasons, these vehicles are deployed all at once most of the time. The high demand for transport of goods prompts logistics companies to increase their shipping fees to control the influx of orders. This can be a stressful situation for business owners because they will have to pay more on shipping fees. This is also frustrating for customers because many will experience additional surcharges and sometimes, delays in the delivery of an order.

If your business allows you to send out your goods when freight demand is not that high, you can do so. Even just a few days ahead of peak season can make a lot of difference in cutting costs of shipping fees. Of course, this cannot be applied to all types of goods. Perishable items should be shipped immediately and with special consideration on the type of vehicle used to preserve the quality of the product.

Save on packaging

Packaging is one of the main expenses for a business that sends out goods to customers across the country. It’s important to keep them as low as possible, especially when you’re shipping products overseas. Shipping can be expensive, but there are ways you can reduce your shipping costs by using proper packaging and getting the most out of your logistics services.

You can explore different ways to optimize how your products are packed. Use the smallest packaging possible without compromising the integrity of the product. Reducing the sizes of your packaging will greatly help in reducing your shipping cost as well.

If you can, reuse the materials that you already have. When buying your goods from your supplier, you might find shipping materials that you can reuse such as cardboard boxes and bubble wraps.

Optimize your shipment

Every cubic inch of space that you save will help in saving on shipping costs. It is very important to maximize the space that you have in every shipment so that you can make most of the fees that you spend on freight.

You might already be familiar with the steps made by different large companies such as Apple and Samsung when they reduced the sizes of their boxes. This is a smart move that you can replicate as well. It will give you exponential savings when you add on the fees that you have saved just by shaving off unnecessary spaces in your cardboard box packaging.

Increase lead times

Most business owners are aware that expedited deliveries incur more costs. This is because logistics companies have to make last-minute changes to their delivery schedules to accommodate your abrupt request. But honestly, movers can ramp up their prices as they wish because you need their services to move your cargo immediately and you don’t have much choice but to pay premium fees.

If you can help it, refrain from doing this practice as it will hurt your business in the long run. Planning out your deliveries months or a couple of weeks ahead can make all the difference in cutting costs for logistics expenses. By giving your notice to your logistics partner in advance, they will have time to plan out your shipment and they can offer you the best price possible.

Take note of all fees

Shipping costs can be intimidating sometimes, especially when you have a lot of things to think about while running your business 24/7. There are a lot of charges that you will need to be familiar with. You need to fully understand them to have a clear picture of the cost that you have to pay. It is also needed to have a good understanding of these fees so that you will be fully aware of how you can cut costs and save on future shipments. Remember that shipping cost is part of the fees that you need to charge to your customers or paid by your business, and understanding all of it is crucial to making the best financial decisions.

You can always talk to your logistics partner if there is any information in your freight charges that you wish to understand. That way, you will not be caught off guard whenever abrupt changes or problems will arise.

Reducing shipping cost

There are a lot of ways that you can reduce your shipping cost. Freight being one of the major expenses for your business should be something that you need to take a look into from time to time. While it might be initially difficult to understand at first, mastering this part of your business will surely help in making sure that you save money in the long run.

When you finally decide that it is time to proceed to the next step that will bring your business to newer heights, one of the things that you need to decide on how to choose a logistics partner. A logistics partner is another company that will manage and take care of your logistics needs so that you no longer have to. It is like having an extension of your office whose only job is delivering your goods from your warehouse to your customers. Your growth also brings an additional burden of managing your orders so if you decide to outsource your logistics to another company, there are many things that you should consider in order to make the best decision.

Reputation

There are many reasons why you should consider the reputation of a company when choosing your logistics partner. The first and most important reason is that it will help you to avoid dealing with a company that has a bad image. You should always check the reviews that are available on the Internet, but there are some other ways in which you can get an idea about how a given company works.

The second reason is that it will help you to avoid dealing with any kind of problems in your business. It is better, at least most of the time, to deal with companies who have been around for a long time because they are more experienced and can provide you with better services. But knowing the people behind a company can also help. New companies with experts who already had prior experience are also a good indication that you will be given the best services.

The third reason why you should consider the reputation of a company when choosing your logistics partner is that it will help you to save money on taxes and on shipping fees as well. When you choose a good service provider, then these issues become irrelevant, because they will make sure that everything goes according to plan without any hassles or delays.

When you’re a business owner, it’s easy to get wrapped up in the day-to-day operations of your company. But when it comes time to choose a logistics partner, it’s important to consider more than just price and service.

Customer Service

According to a survey of 2,000 consumers, “customer service” was one of the most important aspects of a company. In fact, it was ranked as the second most important aspect of any company behind “pricing.”

With that in mind, when you’re choosing a logistics partner, it’s important to make sure they have an excellent reputation for customer service. If you have any issues with your current provider or if something goes wrong with your order and you need help resolving it, having a good relationship with your provider will help ensure that they are able to fix the issue quickly so that you can get back on track with your business. A company’s customer service reputation is determined by how well they handle issues that arise during the process of delivering its cargo. If you have any problems with your shipment, then it’s important that you can contact them easily and quickly. This means that they should be able to provide support in a timely manner and when needed.

When choosing a logistics partner, you also want to find one that has the experience and expertise to handle large volumes of cargo. You may check with your prospects about the different clients that they have served in the past and check with those companies if how were their relationships.

One more reason why you need to choose a company that offers excellent customer service if you want to stand out from your competitors is online shopping. With the increasing popularity of e-commerce, more and more people are looking to purchase products online. This means that the logistics industry has become very competitive. You could not afford to lose your customers just because your logistics partner could not resolve your delivery issues promptly.

Lastly, it’s also important to make sure they are familiar with your industry and what types of products you sell or distribute. This way, they can provide accurate information regarding how much time it will take them to deliver your shipments as well as any other details relating to their services.

Type of Services Offered

A big part of choosing a logistics partner is knowing what they offer and what they don’t. What services do they provide? Do they only handle one type of service or several types? How many people are employed by their company? These questions all play into deciding which company is right for you and your business needs.

You need to make sure that you are going with a company that will check all the boxes when it comes to the list of services that you need. Your business needs to be operated as fast as possible and going to a single provider will ultimately improve your experience.

Area of Operation

The area of operation of your logistics partner is important because it determines the level of service that they can provide. In other words, a company that operates in one specific area will have better access to local suppliers and be able to offer better quality products than a company that operates in multiple areas.

Another reason why the area of operation of a logistics company is so important is that it allows you to accommodate customers from far locations. For example, if you are looking for a long-distance shipping service but your partner only operates within the same city where you live then it will be difficult for you to get their services.

A good logistics partner should also have an excellent reputation among customers who use them regularly. This means that if you are thinking about using them for your next shipment then other people have used their services before and had positive experiences with them.

Choosing a logistics partner is an important decision. You want to make sure you are getting the best of the best, and that they are the right fit for you and your business. We hope this guide was helpful in making sure that the choice that you will make in this important decision will be beneficial to your business.

The logistics industry is one of the fastest-growing service-oriented industries in the world. As more people are relying on online shopping to get almost everything that they needed, the demand for moving goods everywhere will only continue to skyrocket. Here we will discuss about all the latest technologies in logistics.

But logistics is an ancient business, even the Romans already established an early form of this industry. In the 21st century, what are the latest technologies in logistics that are able to help organizations around the world to operate worldwide with hundreds of thousands of customers without any major issues?

Transportation Management Systems

A transportation management system (TMS) is a software system that can be used to monitor, manage and control the movement of goods. TMS helps in providing real-time information about the location and status of vehicles, freight containers, and goods. It also provides information about drivers, their hours on duty, and their performance. It also has the ability to integrate with other systems in order to provide data analytics. When used properly, TMS can help improve productivity, efficiency, and safety. In short, it helps in making sure that the goods are transported from origin to destination on time and in good condition.

There are several reasons why TMS should be used for the more efficient management of freight vehicles. First, it can help in reducing costs by preventing the overloading of trucks with too much cargo. Second, it can help in reducing accidents by providing real-time information about drivers’ performance so that corrective action can be taken immediately if required. Third, it can help in ensuring high-quality transportation by providing timely feedback to drivers about any issues related to the movement of goods that might affect their quality or delay their delivery at the destination point.

Although most companies have already invested in TMS, many still don’t know how it can be used effectively to improve their operations. Here are some ways you can use TMS for more efficient management of your freight vehicles:

Track all your vehicles – This is the first step in managing your fleet. You will need to track all your vehicles to ensure that they are moving as expected and that there are no issues with their operation or maintenance. You should also be able to identify any potential problems with each vehicle before they become major issues that require repair or replacement.

Optimize routes – When you are tracking all your vehicles, you will want to optimize the route that they take between origin and destination so that they arrive at their destination on time and without incident. You can do this by using routing software that provides you with an optimal route based on current traffic conditions as well as road conditions such as weather conditions and traffic congestion.

Artificial Intelligence and Machine Learning

The logistics industry is undergoing a renaissance. With the advent of autonomous vehicles, it’s not just about creating new supply chains; it’s also about creating new ways to manage them. Artificial intelligence (AI) and machine learning are helping companies transform the way they do business.

AI is already being used by shipping companies to improve visibility in their supply chains, reduce costs and increase efficiency. AI is also helping retailers track their shipping activities from multiple angles, allowing them to discover issues before they get worse.

A growing number of companies are using artificial intelligence and machine learning to revolutionize the way they do business. These technologies are being used in many industries, including logistics, where they can help companies become more efficient and competitive. While some companies have already started to adapt to this new concept, there are still some issues that they are constantly facing. Here are some of the challenges:

Transparency – The data that drives AI applications (e.g., images, videos) often require more human effort than traditional data sets (e.g., email addresses or transactional histories). As a result, businesses must invest in training their data scientists if they want to use AI solutions effectively.

Security – Data security is extremely important when it comes to any kind of sensitive information — including personal health records or financial details — that could be used for nefarious purposes if stolen or leaked

However, despite the risk that goes with any type of new technology, the main purpose of incorporating AI into businesses is inevitable. We have to adapt to these changes because we could not stop the future from happening. With that said, here are some of the reasons why using artificial intelligence is going to be a game-changer in the logistics industry.

• Improve customer service by identifying common questions and issues before they arise by using chatbots
• Increase productivity by using self-driving trucks or drones to deliver packages at faster speeds than human drivers
• Decrease costs by automating manual tasks such as managing inventory or processing payments

Automation

Automation is being used in the logistics industry to make operations more efficient. Automation is a major component of modern logistics, but it can also be applied to non-logistics areas such as manufacturing and retail.

The use of automation in logistics has grown significantly over the last decade due to a number of factors:

• Rapidly improving technology that makes it easier for companies to automate processes on their own premises
• The rise of cloud computing, allows companies to outsource some of their IT functions to third parties
• The growing popularity of e-commerce and digital marketing has made it easier for companies to sell products online without having physical stores

Automation and technology are becoming increasingly important in the logistics industry. The use of robotics, drones and artificial intelligence (AI) is becoming more prevalent as companies look to optimize their processes. Automated transportation systems are being used to reduce costs and improve efficiency while improving the quality of service for customers. Drones can be used for everything from package delivery to inspections of goods in transit.

Automation technology has already changed the way many companies operate their supply chains. Here are some of the latest innovations:

Autonomous vehicles – Self-driving cars are one of the most talked-about trends in transportation. The first driverless cars that are semi-autonomous were introduced onpublic roads just a few years ago, with several major automakers rolling out new models this year.

Robotic pallets – The use of robotic pallets continues to grow as manufacturers look for ways to boost productivity while reducing costs and improving safety conditions. The machines can perform tasks such as loading or unloading containers or stacking materials with high accuracy and speed while eliminating human error altogether — perfect for today’s shipping needs!

Inventory management software – These tools provide real-time visibility into your inventory levels. Including automation functions in this software will eliminate most human errors.

A new era in the logistics industry is starting today. New technologies that we only dreamed of before are starting to make their way into this old but continually evolving industry. We might not know what exactly the future holds for freight companies, but it is an exciting sight to be part of a new technological revolution.

Prices of petroleum products had been steadily rising over the last few months without any sign of slowing down in the near future. Different factors from geopolitical unrest in some regions of the world and unstable supplies are some of the reasons that drove up a major jump in fuel prices recently. Here we have discuss about the Impact of rising oil prices on the Logistics Industry

So how important is fuel for logistics operators and how does it affect the prices of services that they impose on their customers? Rising oil prices add a big burden to carriers all around the world. They are faced with the difficult decision to either operate at a loss or pass on the cost of rising fuel to their customers, either way, is not a pleasant business decision for anyone involved. But, this is something that carriers have to do or else face possible bigger financial issues down the road. With the logistics industry being largely dependent on fuel to operate, what would be the long-term effect of this problem that everyone is facing globally?

Increased cost to consumers

The increased cost of fuel products forced logistics companies to increase their delivery rates to cover fuel costs. As a business operating on service fees paid by its customers and with a large chunk of operating costs going to fuel, carriers are very reliant on the fees that they impose to continue operating. As of this writing, price monitoring sources reported a more than 50% increase in the price of fuel compared to the same time a year ago. This added burden to costs prompted logistics operators and business owners to increase the cost of their goods and services to cope.

To keep supplies of goods moving across the country, many logistics companies are resorting to other solutions such as adjusting their movement schedule to try and minimize the effect of high oil prices.

Product Inflation

Rising oil products cause a domino effect on the whole consumer chain. With prices of oil rising, this will force freight companies to increase the cost of their services. As mentioned earlier, this will also prompt business owners to increase the price of their goods to cover the higher cost that they paid to move their products. Ultimately, it will be the consumer who will absorb the majority of the increase in prices.

If no intervention will be done to cushion the effects of rising oil prices on the consumers, we can expect that prices of basic commodities will also continue to rise.

Fewer competitions

As more logistics companies are suffering from losses on the increased oil prices, many are forced to make hard decisions of pausing, limiting, or totally ceasing operations. This will result in lesser competition in the logistics industry.

If one will look at the scenario, it can be a good thing but too much imbalance in the supply of freight service providers will also cause problems to the already volatile economy. As demands for basic goods are still stable, lesser movement will cause shortages in some areas that are no longer serviced as frequently by carriers.

Some logistics companies are exploring the possibility of using new technology such as alternative fuel to minimize the impact of the rising price of oil on their operations. However, these technologies are still new and not universally available. For small carriers, investing in new technologies are also a big challenge considering the big upfront cost that they have to cover.

Service Reduction

One of the proven solutions that most logistics companies can implement in worst-case scenarios is service reduction. If it is no longer viable to serve long-distance customers, some logistics companies will be forced to let go of these clients either temporarily or permanently depending on the severity of the problems faced.

This means that carriers will have to identify viable service areas that are ideally near the headquarters or distribution centers that they maintain. Doing this optimizes the expenses incurred in moving goods in a specific region while continually serving customers. This will make it possible to still continue operating using the least resources possible. Of course, companies with multiple distribution centers will definitely have more advantages as far as this strategy is concerned. This measure is a last resort for most companies and like all businesses, carriers will also have to consider the viability and survival of their businesses in making major decisions such as this one.

What the future holds

No one is definitely sure what the future holds for the prices of fuel. Different factors are affecting the volatility of fuel prices in the world market and economists are unsure if the rise of prices is going down anytime soon. As more people are dependent on the delivery of goods, it does not seem likely that the logistics industry is going anywhere. But, if uncontrolled, the rising oil prices will relatively affect the price that we pay for all the things that we buy.