How distributors can reduce logistics cost

How distributors can

reduce logistics cost?

by William King Whenever wholesalers source products from anywhere, along with the good quality they mainly focus on logistics costs. All kinds of activities included in acquiring goods such as procurement, transportation, shipment and supplying products to the storage area involve cost and logistics management. High logistics prices can also increase the landed cost of products and so is the final price. It is quite important for distributors or suppliers to control logistics cost to provide products to the wholesalers at low prices. （每当批发商来源从任何地方,以及产品以其优良的品质,他们主要集中在物流成本。各种各样的活动,包括在获取货物,如采购、运输、运输和供货,包括成本和存储区域物流的管理。高价格也会增加了物流成本的产品和着陆是最终的价格。它是相当重要的,为经销商或供应商控制物流成本的为客户提供产品的批发商价格低廉。） Distributors are working to develop strategies and cost-effective processes to let their customers get the wholesale products at nominal rates. They consider that increasing logistics costs should not

over-shadow the prices of wholesale products. Logistics industry is quite dynamic and prices fluctuate on almost weekly basis due to fuel prices, delays in delivery time and various export & import duties. One time increase in fuel prices doubles the logistics cost. Therefore, it is necessary for wholesale distributors to find out ways to reduce logistics cost. （经销商都在努力开发策略,并具成本效益的过程能够让他们的客户得到批发产品名义利率。他们认为,提高物流成本的价格不应该over-shadow 批发产品。物流产业是相当活跃和物价波动几乎每周由于燃料价格,延迟交货时间及各

种进出口关税。有一段时间价格上调双打物流成本。因此,有必要对批发经销商来找出方法来降低物流成本。）

Distributors must constantly check the market rates, for example, calculate freight, import & export duties, inventory costs and different logistics carriers to choose the best practice out of all. Once you have calculated all the costs, you may set up the landed price of products for different distribution regions. You may also decide whether to go for the international distribution or limit yourself to the local markets only. （分销商必须经常检查市场汇率,例如,计算运费、进出口关税、库存成本和不同的物流运输工具来选择最佳实践脱离一切。一旦你已经计算出所有的费用,你可以建立到岸价格的产品供不同分布地区。你也可以决定去参加国际分销或限制自己只当地的市场。

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Consider different services and their different charges and decide how much you can afford to pay and through which medium. Undoubtedly, faster products delivery mode is by air, but it is quite expensive and at the same time, shipment through sea is quite nominal with different size containers suitable for different needs.

You should patch up with various other distributors to consolidate their products into one shipment. It can reduce the individual burden of logistics costs on each distributor. For longer route, the consolidation can result into a more cost-effective shipment mode.

Keep your customers informed about the varying logistics and freight costs for different wholesale products so they can make well-informed decisions about the final inventory costs. It is necessary to communicate the varying costs to wholesalers to share logistics cost with them or to let them choose the less expensive option (local suppliers).

A distributor must check different insurance companies which cover shipment of wholesale products in which you are dealing. It is important because if you choose the carriers' insurance it will be costly and if your company is self-insured it will reduce your extra cost that you will have to pay to your carrier to share his insurance cost. （经销商必须检查不同保险公司批发产品包括装运在你正在处理。它是很重要的,因为如果你选择运营商的保险将是耗资巨大,如果您的公司正在self-insured因为这样会降低你的额外的费用,你将不得不支付到你的载体来分享他的保费。）

Automate your supply chain system to enhance the trade compliance and speed up the delivery system. The companies which have implemented software solutions overcome the additional costs of document preparation, manual tasks, related

delays & errors, negligence of real statistical data and customer satisfaction. Internet tools always help in reducing cost. Doing all this distributors can reduce the logistics cost efficiently.

William King is the director of Wholesale Distributors, Wholesalers and UK Distributors. He has 18 years of experience in the marketing and trading industries and has been helping retailers, entrepreneurs and startups with their product sourcing, promotion, marketing and supply chain requirements.（威廉王主任批发分销商、批发商和英国分销商。他有18年的经验,在营销和贸易行业和一直在帮助零售商、企业家和启动他们的产品和服务的采购、推广、营销和供应链的要求。）