Logistics includes all the activities put in place to plan, coordinate and optimize supply, production, distribution, after-sales service and return flows.

Good logistics management can allow the company a competitive advantage thanks to a better quality of services and costs. This is why operators are looking for ways to reduce their logistics costs in order to ensure the sustainability of their business.

In this article we are going to discover four ways to reduce a company's logistics costs.

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Optimizing vehicle loading

Optimizing loading is the first factor that the company should focus on.

If the company ensures that all its vehicles are filled to capacity, the company will notice a decrease in the number of trips and therefore in transport costs.

The reduction in the number of trips will also allow the company to reduce its carbon footprint, which will have a direct impact on the company's image.

Indeed, reducing emissions is a new challenge for businesses and their customers.

By taking into account the environment, the company conveys a positive brand image.

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‍Optimizing the itinerary

Optimizing the route — like optimizing freight loads — makes it possible to have a positive impact on the ecological driving of transport companies. Indeed, having a detailed visual and a precise strategy on the routes of carriers will allow the company to save on the fuel consumption of its drivers and therefore limit their CO2 emissions.

Also, as we all know, traffic is very random. Accidents happen, construction, road restrictions etc. These hazards make it difficult for those who need to plan routes because data is not transmitted on time. This is why it is essential to be able to plan the best route with real-time data in order to avoid traffic and hazards and find a quick alternative in case the company faces a risk.

In the end, a better itinerary also means faster shipping to the end customer.

Therefore, optimizing the route will make it possible to increase the productivity of transport companies, and the improvement of customer service - at a lower cost.

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Optimizing the vehicle fleet

Optimizing the vehicle fleet is possible if loads and routes are optimized.

Indeed, real-time monitoring of its vehicles will allow the company to prevent hazards such as accidents, breakdowns etc. in order to have functional vehicles on a daily basis and therefore avoid delays.

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Setting up a TMS (Transport Management System)

Several advantages can emerge from the use of a TMS: optimizing vehicle loading, optimizing the route, optimizing the vehicle fleet. An optimization that consequently allows a reduction in logistics costs.

Indeed, the TMS is an essential tool in order to reduce logistics costs. The TMS will generate the most optimized transport patterns according to the needs of the company. All data will be shared on the same interface allowing collective information to all actors in the Supply Chain. Real-time knowledge of traffic hazards and disturbances will also be possible.

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Chez Everysens we offer the first collaborative, predictive and real-time TMS on the market, designed for shippers and freight forwarders. This platform digitizes a set of transport processes, simplifies exchanges and decision support - thanks to AI technologies. This tool allows the company to control its expenses, and ensures proactive monitoring of flows.

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Are you curious and would be interested in a demo of our platform? Plan a meeting with our team.