Four Strategic Levers for Transportation Cost Savings PPT
This PPT slide, part of the 25-slide Supply Chain Cost Reduction: Transportation PowerPoint presentation, outlines 4 key levers for cost reduction in transportation, aimed at addressing real-world challenges that lead to increased costs. Each lever is accompanied by a rationale, providing insights into how they can help organizations achieve significant savings.
The first lever, "Compliance with Contracted Price," emphasizes the importance of adhering to agreed payment terms. It highlights the need to ensure that there are no hidden charges, which can lead to unexpected costs. This lever suggests that a thorough review of contracts can reveal potential savings.
The second lever, "Negotiated Price," focuses on understanding the lowest possible costs available. It encourages benchmarking against various suppliers to identify the best pricing for similar services. This approach can lead to substantial savings, particularly if companies are not aware of the market rates.
The third lever, "Contract Terms," stresses the need for better payment terms and the linkage of rates to external indices, such as fuel prices. This can help organizations avoid unnecessary expenses when fuel prices fluctuate, ensuring that they are not overpaying during periods of high fuel costs.
The final lever, "Customer Breakpoints and Behavioral Changes," addresses how customer ordering habits can impact transportation costs. It points out that unnecessary early deliveries can incur additional costs. By understanding these behaviors, companies can adjust their logistics strategies to optimize delivery schedules and reduce expenses.
Overall, the slide presents a structured approach to identifying opportunities for cost savings in transportation, suggesting that companies can achieve up to 40% in savings by implementing these strategies.
This slide is part of the Supply Chain Cost Reduction: Transportation PowerPoint presentation.
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Supply Chain Analysis Transportation Supply Chain Cost Reduction Benchmarking Logistics Compliance
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