Top 5 Logistics and Supply Chain Hacks for Your Small Business

Top 5 Logistics and Supply Chain Hacks for Your Small Business | Zmodal

Freight spend has risen substantially over the last few years for small businesses. Navigating the constantly changing freight and logistics market can be quite intimidating as well as more expensive than you might think. But it doesn't have to be. Here are several steps that any small business should take to make sure they are fostering the most efficient supply and logistics chain possible.

Technology Adoption

Technology is important to be able to review and improve your supply chain. If you are not using some form of transportation and shipping software to track freight spend, shipment timing, and warehouse inventory, then this needs to be an immediate priority. Without strong data analytics, it is very hard to create process improvements in your supply chain.

Shipment tracking is also critical to your logistics plan because it allows you to quickly and easily let a customer know when an outbound load will arrive as well as let your warehouse and dock team know when to expect an inbound shipment.

Supply-Side Spend

Supply-side spend can add up. Many times, companies let their suppliers handle the inbound freight, and the cost of shipping is considered part of the purchase price of what they are providing. This does simplify the process, however, it leaves opportunities on the table for improved efficiency at your own freight docks and in the amount you spend on inbound freight.

Start talking with suppliers and your logistics providers about the costs involved with routing your own inbound freight. If there are substantial cost savings present, start a trial moving some of your inbound freight, and then slowly expand this as your inbound freight processes solidify.

Warehouse Inventory Levels

Inventory holding costs can add up substantially, as can the amount of capital that is tied up in inventory. Technology again can be an immense help. Take a look at the various warehouse and inventory management software tools available. Implementing warehouse management software will provide you with the data you need to make appropriate changes.

As you analyze data, you might realize it is more efficient and cost-effective to house inventory in smaller quantities at several warehouses instead of keeping it all in one central location.

A Balance of Modes

It is easy to get in the habit of using one mode of transportation for your freight, but this would be overlooking the efficiencies of alternative modes. While many small businesses rely heavily on over-the-road trucking, intermodal is another option that most small businesses do not consider.

Intermodal is the process of using a container moved by trucks for the first and last mile, then translating that container onto a railroad for the long haul portion of the trip.

When the shipments are longer than five to eight hundred miles depending on the lane and distance, and are not highly expedited in nature, intermodal shipping will have a 10 to 20 cost reduction over long-haul trucking.

Another advantage to moving a portion of your freight via intermodal is guaranteed capacity. A robust supply chain is built on a diverse group of services and carriers, so if there is an issue in one lane or mode, your business is still able to function.

Robust Processes

Small businesses don't always emphasize the use and development of processes throughout their business. Process development, particularly with logistics, can be critical though when the inevitable issue arises. The most basic way to build a logistics process is to simply document each step you take for both inbound and outbound logistics. Periodically review these processes with the data you collect from step one. Doing so will enable you to continually improve your supply chain and freight movements.

Implementing these five top logistics hacks for small businesses and let us know how it goes. Look for more videos and updates coming from Zmodal very soon.

Keywords

Freight Spend
Logistics Market
Supply Chain
Transportation and Shipping Software
Shipment Tracking
Inbound Freight
Warehouse Inventory
Inventory Management
Transportation Modes
Over-the-Road Trucking
Intermodal Shipping
Process Development

FAQ

Q: Why is technology adoption crucial for small businesses in logistics? A: Technology enables businesses to review and improve their supply chain, track freight spend, shipment timing, and warehouse inventory efficiently using data analytics.

Q: How can small businesses reduce their supply-side spend? A: By routing their own inbound freight instead of letting suppliers handle it, businesses can find significant cost savings and improve efficiency.

Q: What are the advantages of using intermodal shipping for small businesses? A: Intermodal shipping can provide cost reductions of 10-20% over long-haul trucking for shipments longer than 500-800 miles. It also offers guaranteed capacity.

Q: How can warehouse inventory levels be managed effectively? A: Implement warehouse management software to get the necessary data for making appropriate changes. It might be more efficient to house inventory in smaller quantities across multiple locations.

Q: What should small businesses do to improve their logistics processes? A: Develop and periodically review documented processes for both inbound and outbound logistics using collected data to continually improve supply chain and freight movements.