When we launched our series a couple of weeks ago on how companies can reduce their supply chain and logistics costs by 10-15%, we got some interesting questions. One CEO asked: “Is it really possible to achieve that level of savings?” The answer to that question is simply yes because we've partnered with companies and seen this happen.
Last week, we had to take a brief hiatus from this series to highlight a new webinar about tariffs and de minimis on September 23 at 11am Central that we’re hosting with our friends from the National Industrial Transportation League (NITL) and CSCMP. Our expert resources will share updates along with tangible steps your company can take to manage the impact of tariffs, plus strategies for near shoring or reshoring. We know many people have packed schedules, so we'll send a recording to everyone that registers.
This week, we’re back to our series on how your company can reduce its logistics and supply chain costs by 10-15%.
In part one we talked about how companies that want to produce these kinds of savings need to focus on strategic changes and not tactical ones. Focusing on tactics often leads to looking outside the organization for lower costs. But after your suppliers and carriers give you their lowest possible costs, where do you find further savings? Companies that think strategically know that by focusing on improving internal practices and processes that they can influence, there is a wellspring of savings that can grow over time.
In part two we talked about the advantages of a TMS, such as how they automate processes with carriers and suppliers, and gather crucial data to make better business decisions.
That brings us to part 3: Don’t be shy in asking for help that can unlock valuable experience and expertise.
Can I ask a blunt question: “Is your company insular and committed to only using internal resources to manage complex logistics and supply chain challenges?” For example, when a newer customer shared that TranzAct is giving them data that is light years better than what they had gotten from their previous freight audit and payment provider, he asked: How can we use this data that is more accurate to achieve savings and improve profitability?
That’s not an easy question to answer since there are a ton of possibilities! Fortunately, TranzAct has a team of experts with a wealth of experience and expertise that can work with this company and yours to illustrate how this data can identify options and possibilities that will lead to a better supply chain and lower costs.
On another recent call, after hearing a CEO share that his company is having big issues with tariffs, I asked: “What kind of expertise do you have internally?” They responded that they didn’t have anyone that really knows about tariffs, foreign trade, incoterms or other concerns. They reached out to the right company, because TranzAct has people with this expertise.
Years ago, when I was resisting bringing in an expert to help us address an important issue, a mentor gave me a guiding principle: "If you want to go fast, go alone. If you want to go far, take someone with you."
When companies are serious about reducing their costs, outside resources can help them go further and deliver savings to their bottom lines. TranzAct has a proven methodology that can unlock those savings for companies that are willing to improve their supply chain practices and processes.
If that is your company, let’s have a discussion about how we can find 10-15% savings in your supply chain and logistics costs. To connect give me a call at 630-833-0890 Ext 190, send me an email or schedule a meeting with Calendly.
BY MIKE REGAN, CO-FOUNDER OF TRANZACT
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