A lean business has optimised processes, such as sourcing, accounting, manufacturing, and freight forwarding. A supply chain manager will understand how to efficiently use these processes, and many choose to use a freight forwarder in Australia to provide valuable assistance. They can use cost reduction programs to add extra value that they can pass on to their clients. In this article, we will look at three ways that a good freight forwarder can help you to run a lean business.

1. Eliminating Extra Costs and Overheads

Analysing the costs of your supply chain is simple. If you notice that your products costs are comparatively higher despite low manufacturing costs your current freight handler is not operating effectively. Extra costs and overheads, such as custom penalties, losses due to damage in transit, bunker surcharges, demurrage, detention and port congestion charges, can all have a devastating effect on your budget. The extra costs incurred will increase the landed cost of your products, this will have an impact on your profit margin, and it could make your goods less competitive. A great freight forwarder can eliminate these extra costs and overheads that arise from poor management of processes and the subsequent waste that inevitably follows.

2. Using Technology to Support Processes

A lean business will consume far fewer resources and generate greater outcomes. Reducing glitches in your supply chain will help you to achieve minimum cost and time outcomes and the best technology will support the processes necessary to reach that goal. However, investing in this technology may not be the best investment to deliver a sound return for many supply chain managers. But, a freight handler has an association with a large number of companies and investing in this technology is necessary. They can use this technology to monitor, improve and manage your supply chain processes to reduce errors and eliminate waste. Ask you freight handler how the use technology, such as cloud data management, RFIDs and Electronic Data Interchange, can be used to improve the supply chain for lean business managers.

3. A Proactive Approach

It’s important to implement a proactive approach in you want to reduce your delivery lead times. In any supply chain, the management of time is vital and every minute expended will cost more money. A delay due to incorrect documentation, unnecessary overtime cost to process a shipment or trucks hanging around to load and unload, are all factors that will have a negative impact on your delivery schedules. Costs will increase, and you may experience a decrease in customer satisfaction due to missed deadlines. A good freight handler will be able to achieve shorter time frames to put you closer to your customer's demands. Adopting lean business principles, increasing flexibility and reducing oversupply waste will ensure that your turnaround time is optimised.

If you’re looking for a professional and reliable freight forwarding service, get in touch with AFI Logistics for expert help and advice.

Recommended Reading:

https://www.afilogistics.com.au/news/3-ways-an-air-freight-forwarder-in-australia-can-assist-you-in-delivering-products-faster