Strategies for Driving Down Costs in Logistics and Distribution

The logistics and distribution sector has experienced a spell of unprecedented growth during the past few years, partly driven by the global economy finally emerging from its post-financial crash slumbers and partly by the expansion of the electronic commerce sector. Market commentators predict that pattern is set to continue for the months and years to come and that the biggest threat to the prosperity and sustainability of logistics and distribution is the sector’s ongoing difficulty in containing its costs. In this short piece, we set out three proven strategies to help drive down expenses.

Logistics and Distribution

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1. Think About Unit Load Design

With pallets being the most important units in the distribution chain, there is the understandable temptation to think in terms of modifying the design of the pallet to improve efficiency and cut costs. Experts, however, say that refining unit load design may be a more effective strategy. Dr Mark White,a leading global expert on costs and efficiencies in supply chain management, agrees and urges businesses to keep up to date with the latest scholarship on this, since there are real opportunities for savings.

2. Downsize Your Pallets

There is growing demand in both Europe and the United States for half- and quarter-size pallets because they help minimise the warehouse space used for storage, are lighter and are ideally suited to smaller loads and to the diverse specialised loads which increasingly characterise distribution centres such as warehouses. Much depends on the loads being processed, of course, but many businesses could profit from using fewer full-size pallets and more of the smaller units.

3. Racking and Pallet Wrapping Machines

Investing in good-quality pallet racking is an often overlooked way of maximising the safety and efficiency of various types of storage facilities. Racking helps to control inventory, reduces the space needed for storage and is generally safer for staff than other storage solutions. On a related note, consideration of pallet wrapping methods is important. Businesses can profitably investigate the various pallet wrapping machines, such as those available at www.packaging-machines.co.uk, to determine whether there are more suitable solutions for your enterprise.

These are exciting times for the logistics and distribution sector. You can ensure the sustainability and health of your business, say market commentators, by implementing some of these key strategies for driving down costs.

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