Reducing Supply Chain Costs is Easier Than You Think

Companies in the consumer packaged goods (CPGs) industry are always eager for ways to make their supply chain as efficient and cost effective as possible. As a contract manufacturer for the CPG industry, PacMoore is no different. We do everything we can to pass on our savings to our customers while delivering the highest quality services; including consumer packaging, extrusion, spray drying, blending, and more. Apart from negotiating lower shipping costs, what can you do on your end? Sometimes the cost-savings are lurking right in front of you in the day-to-day routine of shipping logistics. So, if you’re looking for ways save money in your supply chain, you ought to put the following ideas on your list!

1. Check with your Industry Organization or Association

Associations can bring you shipping benefits that leverage the scale of the association – providing discounts and savings to its members. For example, we are a member of the Association for Contract Packagers and Manufacturers (CPA) which offers membership in a freight association and many other benefits too!

2. Complete your Bills of Lading Correctly

This may sound like a no-brainer, but always complete the shipping forms accurately and fully! Many shipping delays and extra charges can be traced back to an inaccurate or incomplete Bill of Lading. Pay special attention to your shipment’s freight class. If you class it too high, you’re paying more than necessary.

supply chain shipping and logistics pacmoore contract manufacturing3. Pay Attention to the Label

Along those same lines, you should always label your shipment properly to ensure that nothing gets interpreted incorrectly at its destination. The corresponding paperwork for international shipments also should be filled out fully and carefully.

4. Time is Money: Overnight Shipping Will Cost You!

It’s amazing how often shipments are fulfilled overnight when they don’t need to be. Always communicate with your receiver to understand exactly when it needs to be there and ship based upon that schedule.

5. Communication

Everyone involved should be informed of what is happening and when. When you’re proactive about sharing information ASAP, mistakes can be corrected quickly or avoided altogether. Some shipment services have proactive notification abilities, which may cost money, but could cost you less than it would if a delivery has to be rescheduled.

6. Packaging

Proper palletization can dramatically reduce the likelihood that you will be spending an inordinate amount of money on damaged goods. Accidents happen but if you package, stack, and seal a pallet properly, you can reduce delays in fulfillment and claims costs – not to mention administrative costs.  And all of those things usually translate into happier customers.

There are of course many more ways to reduce supply chain costs, and solutions vary per industry – but don’t overlook shipping as a way to save money!

For more ideas, check out our inspiration: this article by the CPA and one of our previous blogs which can be found here.

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