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Transportation cost reduction

With the right methods, transportation costs can be reduced by up to 20%. Even performance can be improved by optimizing shipments. 

In many businesses today, expenditures for inbound and outbound shipments account for more than half of all supply chain costs. The reason is often a lack of transparency in transportation networks that have developed over time without being thoroughly optimized in past years.

In the future, transportation costs will continue to rise, due to the increasing complexity of global supply chains and rising fuel costs. Transportation costs will also be influenced by large increases in volume, new locations, and new products.

For businesses, this results in outdated transportation rates, poorly utilized trucks, the use of incorrect equipment and modes of transportation, and less than optimal networks.

Benefits of transportation cost reduction

Methods from 4flow consulting for transportation optimization (examples)
Methods from 4flow consulting for transportation optimization (examples)

4flow consulting supports businesses with the reduction of transportation costs and the concrete implementation of actions for improvement.

For businesses in the manufacturing sectors, such as the vehicle and machinery manufacturing industries, our experience has shown that potential transportation cost reductions of 12% to 18% are achievable. For consumer goods and retail businesses, savings of 4% to 8% of transportation costs are possible based on our experience.

Some of the immediate results we get for our clients include:

For sustainable results, 4flow recommends continuous transportation management using the following solutions:

Solutions from 4flow

The experts from 4flow consulting have extensive experience in transportation cost reduction concepts and implementation.

The proven 4flow approach provides the following benefits:

  • Creating transparency and analyses of transportation structures (e. g., using 4flow vista®)
  • Examining the transportation strategy and management processes
  • Evaluating and benchmarking the transportation costs
  • Identifying and coordinating possible fields of action
  • Defining actions
  • Implementing actions

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