Benefits of creating efficiencies through consolidation

David Weakly

By David Weakly Business Development at King Solutions

In the logistics industry, efficiency is the key to success. Streamlining operational processes can help shippers save time and money, all the while allowing them to better serve their customers, no matter where they are located.

Saving time, reducing costs and providing better service is a trifecta that can cause any company to surge ahead of the competition.

How can shippers create efficiencies?
Much like implementing a lean warehouse culture using Six Sigma, Kanban or a variety of other techniques, the same can be done for virtually any process in the logistics supply chain. Shippers can consolidate LTL shipments to reduce the number of shipments they send out, use wearable technology to automate warehouse operations and even implement a TMS to streamline data collection and more.

The benefits
Why would any company want to take these steps? Because doing so grants the following benefits:

Cost reduction
When departments, processes and other activities are consolidated, businesses are able to eliminate redundancies that often create additional costs that are not necessary to have. Just because a process exists, and always has, doesn’t mean that it is an integral part of the supply chain.

Businesses should always seek to eliminate redundancies in their supply chain, thus reducing the costs associated with getting their products into the hands of their customers.

Scalable operations and growth
Growth isn’t always a good thing for companies if they cannot keep up with the demand of the work. A company whose resources are stretched far too thin runs the risk of being unable to service its customers, thus losing out on the quality of service that was a part of what made them successful.

Creating efficiencies allows for far more scalability in a company’s processes because the time, money and resources needed to complete a certain task are all reduced. This allows for healthy, stable growth that remains within the means of the company’s current supply chain operations.

Partnership can create better processes
Creating efficiencies doesn’t always mean taking something out of the equation. Sometimes adding another layer to the supply chain is just what a company needs to become more efficient.

Nothing does this more than partnering with the right third party logistics provider. A good 3PL can works with shippers to streamline their supply chains, making them more efficient than ever. This includes managing a TMS, finding the right carriers, optimizing routes, consolidating truckloads and so much more.

Efficiency in the supply chain creates more savings, more business and more growth. Isn’t it time you streamlined your logistics processes? Contact King Solutions today to find out how we can help you create a more efficient supply chain.