Strategies to reduce distribution costs

Strategies to reduce distribution costs 2021-06-20 12:11:27 Reducing logistics and distribution costs is an important and arduous task for distribution centers. It is not only related to the economic benefits of the distribution center, but also related to the customers of the distribution center The service level directly affects the market competitiveness of the distribution center. Therefore, it is one of the goals pursued by the distribution center to keep the level of customer service from falling, while being able to continuously reduce the cost of distribution. To achieve this goal, a variety of strategies can be adopted, including differentiation strategy, hybrid strategy, merger strategy, delay strategy and standardization strategy. 1. Differentiation strategy The basic idea of u200bu200bthe differentiation strategy is to adopt different service levels for different products. The implementation goal of the differentiation strategy is to achieve a higher level of service at a lower cost. There are many varieties of products in the distribution center. If all the crystals are distributed according to a uniform service level, the company will bear huge distribution costs. If different distribution methods are set according to the sales characteristics of the product, the distribution cost can be greatly reduced. For example, the distribution center can set different distribution methods according to the sales volume of various products. Products with larger sales volume can be delivered within 24 hours, products with general sales volume can be delivered within 48 hours, and products with small sales volume can be delivered within 48 hours. The product takes to be delivered within 72 hours. This approach not only greatly reduces the inventory of products with small sales volume in the distribution center, but also effectively reduces the difficulty of arranging transportation capacity, and the distribution cost has been significantly reduced. 2. Hybrid strategy The basic idea of u200bu200bhybrid strategy is: part of the distribution business is completed by oneself, and the other part is outsourced to a third-party logistics company. Due to the variety of products distributed by the distribution center, different specifications, and the limited resources of the enterprise itself, it is easy to produce uneconomical distribution. Using a hybrid strategy, part of the business depends on its own distribution force to complete, and the other part of the business is outsourced to a third party. It can not only make full use of external resources to make up for the shortage of its own resources, but also can rationally arrange its own resources to complete the distribution business, so that Its own distribution activities have become more economical and reasonable. This approach can effectively reduce the investment of the distribution center in the distribution vehicle, so that the distribution cost can be reduced. 3. Consolidation strategy Consolidation strategy includes distribution consolidation and joint distribution. Distribution consolidation means that when the distribution center arranges vehicles to complete the distribution task, the goods of multiple customers are combined and loaded into one vehicle. Guangzhou logistics company uses light weight matching and size matching to achieve full load and full load, which not only makes full use of the vehicle's The load capacity also makes full use of the volume capacity of the vehicle, thereby increasing the utilization rate of the vehicle and reducing the distribution cost. Co-distribution refers to multiple companies jointly using the same distribution facility to carry out distribution. Multiple distribution entities jointly use a distribution center in the form of cooperation, and jointly complete one or several distribution services through coordinated operation. The use of this method not only improves the utilization of distribution resources, but also reduces the distribution costs of multiple distribution entities at the same time. 4. Delay strategy The basic idea of u200bu200bdelay strategy is: the arrangement of distribution activities should be postponed as far as possible until after receiving customer orders. In the distribution plan arrangement, most distribution activities are arranged after a certain number of orders are received. The advantage of this is that it can realize large-scale operation. If you receive an order and arrange the delivery activities of this order, it will increase the cost of delivery. The processing of a batch of orders can be carried out by batch picking, which not only speeds up the processing speed of orders, but also reduces the workload of picking, thereby reducing distribution costs. 5. Standardization strategy The basic idea of u200bu200bthe standardization strategy is: try to reduce the additional distribution costs caused by the variety of varieties, and use standardized equipment and methods as much as possible. For example, the distribution center packs and distributes the sporadic goods required by the customer according to the uniform specification of the turnover box, which not only facilitates the transportation and loading and unloading of the vehicle, but also avoids the waste of packaging materials, and can effectively protect the business crystal: prevent the goods from being scattered And damage, thereby reducing distribution costs.