Reducing Supply Chain Costs in 2019

Reducing Supply Chain Costs in 2019

Saving money is an important topic for any industry. Every industry is focused on their bottom line. Over the past 5 years, many businesses have started to really look over their supply chain as a way to reduce their costs. Some of the large players such as Amazon are putting pressure on the rest of the market to not only lower costs, but also deliver service levels that are faster and of higher quality. There are several areas to reducing supply chain costs in 2019. Some of these areas are more obvious than others.

Reducing Supply Chain Costs in 2019

Retail Space to Reducing Supply Chain Costs in 2019

One of the biggest investments a company makes is in the real estate that they purchase. However, when real estate is properly handled and managed it can also save money. One of the ways that a company can reduce their costs in terms of real estate is to create multi-client facilities. Many companies have steered away from multi-client facilities in order to avoid competitors. However, sharing a space with other types of business means that the costs will be spread out amongst all of the customers of the facility. This can result in a large amount of savings.

Labor

Cutting the cost of labor does not necessarily mean that you need to reduce the number of workers that you have on staff. Smart management of your current employees can greatly reduce the cost of labor without losing any workers. Proper management of your employees can lead to a lower turnover rate. This translates into a more experienced team that can reduce missing shipping deadlines and other types of things that can affect your costs.

Visibility

When it comes to supply chains, it is important to remember that they are not linear any longer. There are numerous touch points, which increases the need for visibility. It is important to invest in forecasting software and also have a very thorough understanding of your company in order to foresee any changes and seasonal peaks in your shipping demands. This can help to avoid transportation and inventory cost issues.

Technology

One other way that a company can reduce supply chain costs is to implement new technologies. These new technologies may have a higher upfront cost, but the return for the investment is typically high, which can end up saving a company thousands of dollars.

Christopher Morgan Fulfillment

Christopher Morgan Fulfillment has access to more than 600,000 square feet of professionally managed, secure, dry storage space, warehousing & distribution in Milwaukee and in all regions of the United States.

Our facilities are located in:

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