Category Archives: Logistics cost

Logistics services are very critical for any business involved in the transportation of goods from one place to another. Managing the entire set of operations on your own can be too complicated and taxing, especially if you have other pressing matters on hand. As the costs of transportation-related to logistics increases every year, it is only fair to think of outsourcing your logistics service requirements to a reliable company, reducing costs significantly.

Outsourcing your logistics services requirements to a Third-Party Logistics (3PL) company can prove to be a wise decision in the long run. Logistics service providers mainly deal with services such as transportation, warehousing, delivery, and other related operations.

1. Focus on Core Business

Having a dedicated logistics division might initially be a sound concept, but this would also mean that you would have to create additional tasks and jobs that might take away valuable time and resources from your core functions. Outsourcing your logistics to a trusted company will not only make transporting products and goods proceed more efficiently, but it also helps companies concentrate on their core business activities and functions.

2. Receive Industry Expertise

Outsourcing your logistics not only means that you have a logistics partner that will provide the best transportation solutions. They will also be able to provide industry expertise and guidelines regarding the best ways to have your products & goods transported.

3. Access to Technology

Today’s logistics companies provide and use the latest in security and transportation technology. This technology is also beneficial for your customers, as they could track the progress of each of their deliveries. They will check to see if their package reaches its destination safely and on time.

4. Reduce Costs

Transporting products and goods across vast distances means using a significant number of resources and modes of transportation. This makes logistics outsourcing a much more cost-effective option, as their extensive knowledge of routes helps ensure you could save time and money. Outsourcing also removes the need to add more jobs and commit to more resources that can be used in crucial parts of your business.

5. Improve Customer Satisfaction

Customer satisfaction will always play an enormous factor for any business that sells products. Ideally, they want their orders to be delivered on time with no issues. By outsourcing your logistics, you will provide your customers with the best express delivery solution that will surely keep them happy.

6. Reduce Risk Management

Transporting products and goods will always have their risks. Outsourcing your logistics functions will give you to reduce the amount of risk management assessment that you need to do. Your logistics company could do this for you and give you a more detailed report that would allow you to see all the potential risks, and how they can be corrected along the way.

Outsourcing the logistics services of your company to a professional 3PL will bring more advantages. Write to us at info@dexters.co.in or visit Dexters Logistics and know how we can help you achieve a great return on your investment.

Ecommerce businesses are life-changing, but they can also carve a hole in your pocket. There should be a way to avoid that and make your investments worth the money. Reducing these costs will not only give you the benefit of profitability, but it will also help you remain in healthy competition. It is important to cut costs that will help your e-commerce business flourish. 

To save those extra bucks, here are a few simple ways to reduce e-commerce costs for your businesses!

Dexters Logistics will help you have a healthy running business. You should have someone right to rely on to cut down your shipping and packaging costs. The supply chain costs, if handled well, can help you reduce eCommerce costs by a significant margin. This process can become a lot easier if you trust the right people with it–like our Dexters team.

• A Good Deal With the suppliers

Buying in bulk can increase your chances of getting more discounts as you continue your business with those suppliers. It also shows that you are committed and you are not playing around. You can secure an “early bird” discount ranging from 2 to 5 percent, which can very well increase if you continue business with those suppliers in the long run. This type of foresight can help you cut down on a lot of unnecessary e-commerce costs and save you some of that extra cash!

• Reducing Return

Reducing product returns can resolve a lot of issues for your business and it can decrease your costs! You need to let your customers know what they’re buying, so you don’t risk getting more returns as it will raise your shipping costs. You will lose your customers. If you increase the return period to 30 or more days, it gives time to the customer to “own” the product and they may end up not returning it at the end. If the same type of product is being returned, it is good to be cautious and recheck or replace your products.

• Managing Inventory 

Inventory Management can also be beneficial in the long term. By monitoring sales and understanding which products appeal to your target audience and which ones are unlikely to gain much traction, your platforms can make profitable decisions. It allows you to gain clarity and confidence about which products you can manufacture knowing that you will sell them. Observing the movement of inventory encourages e-commerce companies to take notice of developing trends besides declining ones. 

• Optimizing Shipping Methods

Consumers are more likely to purchase a product if they are granted delivery free of cost. One way to minimize this is through negotiating with your suppliers and carriers. Where you have already built a tight relationship with these firms, there is a greater chance of receiving payment or prepayment discounts. Now, if your supplier/carrier is firm about fixed prices, you can opt for purchasing or distributing your products in bulk.Crackeado This would reduce the cost of paying for individual shipments of products. To maximize customer satisfaction, once the aforementioned venues have been explored, you can look towards offering free shipping on festivals (like Diwali or Christmas!) or limited occasions such as when purchases above a certain price are made or if consumers are a part of a membership program.

• Make use of automation

Time is a valuable asset in all organizations and we are pretty sure it is valuable to you, too. Time is money, after all! With advancements in technologies and the availability of software through which business and marketing operations can be executed, we can help you make important decisions on business too! It allows you to prioritize which operations need special attention, and which one’s need to be executed flawlessly. The shift towards online leads to less time being spent on menial tasks and hence employees can spend more time on crucial decision-making. It also helps to increase your productivity and subsequently your profit margins in the long run. 

Conclusion

These investments are worth it if you have the correct resources. Dexter’s logistics team is here to make sure your work is in the right hands. It is never too late to take one step ahead and figure out the right logistics–Dexters is here to make your investments worth it.

Failing to implement the right inventory system for your warehouse can be a costly mistake. But with some considerations in mind, you should be able to find one that works for your business. Some of these factors include cost, flexibility, support, and more. This article will talk about some of the different inventory systems available for businesses and how you could use them.

To choose the right inventory system for your warehouse, you need to decide which solution will offer the best combination of platform and mobile capabilities, and meet your organization’s requirements. Here are some questions that may help guide this decision:

• What is the budget?
• How long do you have before moving into a new facility or building out an existing one? If it’s going to take years before either of these things happens, then maybe there isn’t much point in making any changes because when they come up, there won’t be time left over for additional projects like adding an inventory system, anyway!

 You need to consider several factors when choosing an inventory system for your warehouse. 

• The first thing you should ask yourself is what I want my warehouse to accomplish. If the answer is to make money or sell products faster, then you’re looking at a point-of-purchase (POS) solution.
• If your goal is to keep track of your inventory levels so that they can be monitored by employees and managers, then an ERP (Enterprise Resource Planning) system may be more appropriate.
• Some companies may have a large inventory of products that need to be inventoried, while others may only have a few key items on hand. If this is the case for your business, then one option could be to install an inventory management system that’s compatible with both online and offline technologies.
•  Another factor worth considering is whether there are any additional requirements associated with each type of device being used within a warehouse space.
• Besides tracking inventory levels, are there other processes you’d like to streamline? Consider implementing tools that can also help with asset management, security, reporting, and maintenance.
• This is how it works in practice: say your warehouse is running out of inventory on certain products. You might implement an automated system that tracks these situations and alerts you if they’re happening too often or not at all (which would suggest a problem). So that the employees can look up any solution.
• Regardless of how much space your company has at its disposal—and whether you’re working with paper or digital records—inventory management is an ongoing process that involves constant monitoring and assessment of all items within the organization’s supply chain.

Conclusion

As you can see, there are a ton of benefits to using a warehouse management system. However, it’s important to remember that not every system is created equally. By taking the time to weigh all of your options before deciding on what inventory system to use, your business will greatly benefit in the long term.

Business owners often overlook moving products from point A to point B. However, all customers demand timely delivery. If your business is not actively searching for the best transportation ways, you are behind the competition.

How to Calculate Shipping Costs

Shipping costs revolve around many factors and vary based on what products you are shipping and the mode of transportation. Of course, the further your goods travel, the more costs will increase. But distance is not the only thing to consider before shipping.

Modes of Transportation

The most popular option for domestic shipping is truck freight. Moderate costs, efficient delivery times, and accessibility make full truckload (FTL) and less-than-truckload (LTL) shipping the go-to option for most businesses.

It is essential to understand the trade-off between speed and price. For example, Air transit is about 4-5 times more expensive than road transit. Yet, it is efficient. Whether you value speed or cost more depends on your business needs and consumer demands.

Product Size and Value

The larger your product is, the more expensive it is to ship. Product length, width, height, and weight contribute to the cost of shipping, but some factors are not as easy to measure as size.

Stackable packages are the least expensive to ship. Goods that can be fitted into standard packaging, moved on pallets, and stacked are the gold standard of shipping. Fragile products such as glass or electronics require special handling, resulting in increased costs. Value is also a contributor to freight costs. High-value products that risk damage or theft will cost more to ship, even if the product is small. Hazardous materials such as chemicals, paint, fuel, and lighters require additional permits and packaging.

Costs of Shipping

Retailers state that shipping costs range from 5 to 20 percent of their total revenue, so any free shipping offer forces them to absorb an extra expense. These costs are harrowing for companies with thin margins or view shipping as a profit center.

Free shipping might cause unexpected costs for shippers. While the cost of delivering a package is the key component associated with free shipping, additional challenges persist. For example, increased labor, customer service, and IT costs should be considered before offering free shipping to customers.

Free Shipping with a Minimum Purchase

Free shipping without a minimum purchase can get expensive for a business. It encourages customers to buy cheap, convenient items online one at a time. Many retailers have found creative ways to offer free shipping. Because most retailers want to drive sales without losing margin, some executives note they found tactics like premium shipping clubs, flat-rate shipping, and incorporating shipping into the cost of the product are effective in balancing free shipping service.

Should my business offer free shipping?

As consumer shipping expectations continue to increase, retailers must pay attention to demand and service. Gauge what is most important to your customers: quick delivery or low costs? Be sure to communicate shipping fees or discounts with your audience. Understand that free shipping is enticing to consumers but may not make sense for your business.

Shippers are always looking for new ways to lower transportation and delivery expenses. Partnering with a leading third-party logistics (3PL) provider like Dexters Logistics can reduce shipping costs while improving productivity. Get a free quote on your freight today with Dexters!