How to Save Money on the Cost of Logistics


Businesses who have a lot of products to send out to their clients will have one big expense – logistics. Arranging the packaging of their goods, sending them out to individual addresses and paying for the transportation costs all need to be taken into account. Are there any ways in which these costs can be cut down to size?


With a little shopping around and careful planning, it is possible for businesses to reduce their logistical expenses, all without impacting on the quality of their delivery services. We list a few areas where money can be saved with very little effort needed.


Efficient Packaging


More businesses are consciously reducing the amount of packaging they use for products. The recent trend of “shrinkflation” for sweets and chocolate in the UK is a prime example. Custom shipping boxes are can be made to specific dimensions to avoid unneeded bulk. Where products are being kept in smaller and less bulky packages. If you are delivering products via a courier, you will need to know the following:


  • How big are the products you need to ship
  • How much packaging you actually need


Buying your cardboard boxes or wraps in bulk is a no-brainer, but there is something else you need to take into account – security. Your packages need to have some form of protection, be it bubble wrap, shredded scrap paper or styrofoam. Delicate items like electronics and jewellery need this. The cheapest option is shredded scrap paper; all you need is scrap paper and a shredder.


Logistic Partner


Whilst managing the delivery of all your products gives you control of how you do it, there is another way. A delivery partner will help you by taking care of all the logistical tasks. Taking the packages from A to B, supplying their own transport and even their own drivers – this will save your business a potential headache.


Shopping around for the best logistic partner is a must for saving money. Look at what each supplier offers and compare them against one another before making an informed decision. Some of them will offer additional services such as deliveries abroad Those companies tend to offer the best value for money.


Use of drop-off points will save a lot of money on fuel. Parcel2Go, for example, have access to over 2,500 of them. These points are there for customers to pick up their parcels as and when they need to, often located in post offices, convenience stores and petrol or gas stations.


One Trip, Multiple Deliveries


In isolation, the amount of money spent on fuelling a car or delivery van might not seem like a lot. However, with fuel costs standing at £1.16 a litre in the UK, the amount spent on fuelling a 70-litre tank comes to £81.20.


For three trips a day in a seven-day week using a full tank, that’s £1,705.2 or £88,670.4 for a year. With that amount of money, you could hire four full-time employees or put that money towards another part of the business, such as moving to a larger premises.


Fitting in several deliveries over the course of one trip will save plenty of money in the long run. It will also have the added benefit of familiarising new drivers with regular routes for any regular clients, aiding a reliable service in the process.


Efficient Order Processing


Another way of cutting down costs is to have an order processing system in place. For repeat customers, this would save time and money on printing labels for packages. It could be as simple as setting up a spreadsheet and recording sales for an individual client.


For delivery labels, have a template ready. Then, buy some label paper and make sure you have the appropriate printer. Doing it yourself will save your business the trouble of paying someone else to do it.