How to Reduce Supply Chain Costs?

One of the best ways to reasonably control company expenditures is to reduce supply chain costs. Fortunately, this goal can be achieved in some simple ways.

However, what you need to understand when you start with this part is where the key points are because the correct reduction with a clear understanding will bring the greatest return in the future.

Next, this article will make some suggestions for reducing supply chain costs and increasing profits.

Reduce-Supply-Chain-Costs丨TASK丨ChinaDivision
Reduce-Supply-Chain-Costs丨TASK丨ChinaDivision

1. Cut unnecessary space costs

Making full use of the space you have will save you money every day. As we all know, renting a warehouse to store materials requires daily rent, which will be a lot of money for a long time. Evaluate the utilization rate of your current warehouse space and find a warehouse that is more in line with actual needs that can save some money.

2. Process automation

Warehouse automation is not only a fashion trend, but it can also help you achieve the purpose of reducing supply chain costs. Ask professionals to provide assessment and advice on how to implement automation.

3. Make timely adjustments to customer needs

One of the ways to reduce supply chain costs is to make timely adjustments to customer needs. As the season changes, you will find that customer needs are constantly changing. You can follow these changes to make more accurate sales policies.

4. Minimize product damage rate

The improvement of the product packaging level will help reduce the probability of damage to the product during transportation. Make sure that the staff responsible for this area pack your products correctly to minimize breakage rates.

How to Get The Cheapest International Shipping When Sourcing Products From China

Many businesses order need the Cheapest international shipping, China shipping company, shipping from China when ordering products from suppliers in China. In some cases shipping is the most expensive part of their orders so getting a great price is essential to maximizing profit. If you use the tactics listed below then you are one step ahead when it comes to getting the best shipping rates. There are many things buyers should be aware of when ordering products from China to get the best shipping rates.

Cheapest International Shipping
Cheapest International Shipping

Negotiating With Different Shipping Companies

When getting quotes from suppliers they can ship your items from a variety of carriers. The more expensive carriers like DHL, FedEx International, and EMS offer the fastest shipping times (usually 2-4 business days). The more cost effective carriers like post and others are very slow sometimes even 15 days to one month to deliver your products based on your location. It’s essential to make sure you know when you need your product so that you can use the best shipping company for your situation.

Order Quantities and Shipping Price

It is a common saying that when the quantity ordered increases then the price should decrease. This is also true when ordering products from China. There are shipping fixed costs and then a variable cost of the weight of the items. So when you calculate a rate with a shipping company they are plugging this information into their system to give you a price. (This method will depend on your item’s size but works better for small to medium items) If you are ordering a product like coffee mugs then trying to order just one mug will be expensive but when you order 50 mugs the shipping will be cheaper per unit. It’s all about saving you money on shipping from China because you also have to ship the item to your customer once you receive it.

Online Shipping Calculators

If you believe that your supplier is not being truthful about the shipping cost for your shipment then check the price for yourself on a shipping calculator. You will need to know which carrier you want to use and the dimensions of the packages you are shipping but this is a great way to do-it-yourself or just check a supplier’s pricing to make sure you are not getting screwed over. Sometimes suppliers over inflate the price of shipping to make some extra profit from buyers so beware of this scheme.

International freight forwarders
cheapest shipping rates

Buyers who use these tactics listed above are set to make more profit on their purchases from Chinese suppliers. Once you know how the shipping game works then you can begin to use it to your advantage and make your suppliers work in your best interest. The only problem is that this process is sometimes confusing and it is time consuming. At ChinaDivision we manage the shipping process for your business so that you can focus on what you do best. We can streamline your inventory management and deal with suppliers to help your business work smarter not harder. Contact us today for Cheapest international shipping,China shipping company,shipping from China. We are your one stop shop for all things shipping, logistics, and customer satisfaction.