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4 ways to abate transportation costs as supply chains revive post COVID19

4 ways to abate transportation costs as supply chains revive post COVID19

transportation cost

As the toll on human health from the spread of the deadly coronavirus mounts, the immediate economic effects of the crisis and the livelihoods at stake are being brought into sharp focus. The turbulent economy has lately made it tough for last mile delivery and transportation, which are the cornerstone of the supply chain to thrive. Similar to other aspects of the economy, COVID-19 has also impacted the supply chain segment.

Under such circumstances, it has become critical to gain an in-depth understanding of the transportation costs and how the rising expenses can be mitigated to improve profit margins. Preparing your supply chain business for recovery with the lockdown being lifted in phases, even as the crisis continues to unfold, shall help you bounce back quickly. Undoubtedly, the actions taken during the recovery period will set the base for sustained, long-term growth.

Below mentioned are some of the ways that can help cut transportation costs and further the supply chain recovery. Have a look:

1) Automate Logistics

Whether you own a warehouse for rent in Delhi or elsewhere, one of the best ways to cut costs is to automate the logistics. Technologies available to 3-PL customers assist in regulating, automating, and optimising the manual logistics processes to a great extent. Automation helps centralise production operations, reduce staff requirements, and makes the shipping process accurate, regardless of the shipment volume. By leveraging artificial intelligence, service failures can be predicted and prevented before they even happen. Prevention of service failure ensures smooth dock operations and reduced costs for carrier detention. 3 PLs also facilitate backend analysis and competitive bids by offering access to professional procurement resources. This enables shippers to realize savings sooner.

2) Sales and Operations Planning:

For a supply chain to function at its maximum capacity, sales and operations planning plays a key role. This ensures efficiency and optimal performance. However, it can be complicated and expensive in the long run. This is where third-party logistics come into the picture. Most of the shippers trust 3 PL to eliminate waste and redundancies. It helps address issues such as obsolete inventory, unrestrained stock-outs, and inaccurate forecasts, etc. Additionally, 3 PLs have relationships with thousands of carriers which the shippers can leverage to secure competitive rates. 3 PLs also assist with freight brokerage services for any ad hoc loads that might concern the shipper.

3) Consolidate Shipments:

When using carriers for deliveries, the rate can be negotiated on the basis of weight, distance, and other such variables. By consolidating shipments, supply chains can ensure large shipments in fewer trips. This means shifting from less than truckload (LTL) shipments to truckload (TL) shipments. This strategy helps reduce costs as larger shipments are mostly available at a discount.

4) Route Automation:

This means providing your drivers with well-optimised routes as unnecessary traffic delays and longer distances can skyrocket fuel usage and expenses. One way to do it is by using a route planner that automates the route planning process, making logistics management seamless, educating and rewarding your field representatives, ensuring regular vehicle maintenance, etc.


Managing a supply chain logistics company isn’t a cakewalk. You have to be extra diligent and make the right move every time to avoid losses and mistakes. At the time of crisis, building a resilient supply chain with the help of robust transportation infrastructure must be your goal. Whether having a fully-operational warehouse for rent in Chennai is your aim or you wish to have your existing warehouse developed in a way that ensures smooth operations and reduced costs, Indospace is there to help you create a better supply chain ecosystem.

With the help of the tips mentioned above, you can effectively reduce transportation costs and grow your business while adjusting to the new normal.

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