3 Ways ANY Business Can Lower Costs!

As the weather slowly and nervously dawns its spring demeanor and shakes off the lingering effects of winter, so does the economy cautiously continue on.  Growth is positive, but low.  Employment numbers are positive, but also low.  So how does a business properly react to a withered public confidence still defrosting?  Keeping logistics costs low is the only safe bet to counter unsure sales forecasts and sometimes unsteady growth.

1.  Maintain an Efficient Workforce

Carrier and logistics rates around the country are set to skyrocket, according to the latest studies.  One of the most important reasons?  Driver pay.

With the average age of drivers in the US at 55 and a changing driver culture, there is less and less incentive for new workers to enter the field.  The result?  Driver shortages are forcing up driver pay from the current $45,000 a year to an estimated average of $80,000.  This will be disastrous for any company attempting to control logistics costs in the 21st century.  And the only way to prepare for this is to move your labor to places where the labor is cheap.

Recent regional case studies have shown the North Eastern PA has the benefit of among the least expensive labor force in the United States.  With a resilient work ethic and unbelievably low costs, don’t be surprised when in 10 years, the only companies without rising logistics costs are those shipping and storing out of North Eastern Pennsylvania.

2.  Outsource to Specialists

Companies sometimes prefer to keep logistics in-house– which often turns out to be an expensive error in the long run.  Instead, companies with long term growth prospects succeed by providing the best value they can offer to their customers.  Rather than focusing on in-house logistics, a company who utilizes a 3rd Party Logistics provider leaves shipping and storing to experts devoted to the art of ultra-efficient logistics.  It is truly a shame to see how many businesses suffer or go under – not because their service is lacking- but because they refuse to consider the advantages that low cost 3rd party logistics companies can offer.

3.  Stay Alert to Technological and Societal Changes in Logistics and Consumption

This is a somewhat abstract topic and as a result nearly all businesses will overlook this vital aspect.  Every day, we hear about how technology is making big changes to formerly static fields of business.  Online sales grow exponentially, sending shock waves and massive restructuring throughout the US.  So is this an opportunity or a threat to your company?  And how can an astute organization possibly sift through the many thousands of claims of technological breakthroughs?

Only a 3rd Party Logistics company can keep your business on the forefront of this is unpredictable wave.  3rd Party logistics companies such as Valley Distribution are efficient and forward thinking by design; after all, it’s our business.  Successful long term companies like IBM or General Motors stay relevant by doing what they do best – and leaving the rapidly changing field of logistics to 3rd party providers.