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To optimize outbound logistics, put effort into relationships and negotiations. Use technology to figure out delivery networks, plan routes, organize schedules and, ultimately, keep costs down.

  1. Understand when fast delivery starts.
    To meet carrier requirements for fast shipping, you may need to set up product staging at distribution centers, sort shipments according to distribution center guidelines and tailor packaging to meet their requirements. In some industries, like wholesale food supply, a distribution center may employ a lumper service, which uses third-party workers to load or unload trailers. The aim is to speed up turnaround and let the truck driver rest and depart faster. You need to know whether the distribution center will use lumping so you can account for these extra costs.

  2. Adapt to current inventory strategies.
    Just-in-time (JIT) inventory and other rapid replenishment methods mean that large orders delivered to customers at widely spaced intervals are no longer the norm. Most customers using JIT will not have room to store a lot of excess product, so you need to adapt your outbound logistics to mesh with these inventory trends. You may need to account for more LTL orders.

  3. Build and improve partner relationships.
    Work closely with key partners in outbound logistics, including your customers and freight providers. Depending on your industry, you may sell to major retailers that have deep insights into their complex supply chains. With the right relationship, they may share data on how your product is selling so you can fine-tune your production, order fulfillment and shipping. By working closely with freight carriers, you can learn if dividing your business among just a few shippers gives you more control over price and service level agreements.

  4. Use smart route planning.
    Automated route planning can reduce waiting and travel time for deliveries. The time savings can cut fuel costs and boost customer satisfaction.

  5. Investigate 3PL as an alternative.
    For many companies, the cost and complexity of outbound logistics can make outsourcing to a 3PL a smart move. The size of 3PLs gives them volume discounts and negotiating leverage, which can lead to cost savings for you. 3PLs bring expertise, specialization and the opportunity to quickly scale your operation up or down depending on business needs.