Strategy Of Reducing Freight Cost

blend

The hybrid strategy is to refer to

Differentiation strategy

The guiding principle of differentiation strategy is that product characteristics are different and customer service level is different.

When an enterprise has multiple product lines, it can not distribute all products according to the same standard of customer service level. Instead, different inventory, different pportation modes and different storage locations should be set according to the characteristics and sales level of the products. Ignoring the difference of products will increase unnecessary distribution costs.

For example, a company that manufactures chemical additives classifies the products according to the sales volume of various products: Sales of class a products account for more than 70% of total sales, B products account for 20%, and C products are about 10%.

For class a products, the company has stock in all sales outlets. B products are stocked only in the regional distribution center and are not stocked at all sales outlets. C products even have no stock in the regional distribution center, only in the warehouse of the factory.

After a period of operation, it proved that this method was successful, and the total delivery cost of the enterprise dropped by 20%.

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Consolidation strategy

The merger strategy consists of two levels: one is the merger of distribution methods; the other is joint distribution.

Consolidation of distribution methods.

When arranging the vehicle to complete the distribution task, making full use of the volume and load capacity of the vehicle is an important way to reduce the cost.

Because of the wide variety of products, not only the packaging form, storage and pportation performance are different, but also in bulk density.

If only a large volume of cargo is loaded on a vehicle, it often reaches the carrying capacity, but it has a lot of spare capacity. On the contrary, the goods with small bulk density do not seem to have reached the vehicle load.

These two situations actually result in waste.

Carrying out reasonable loading and unloading of goods with different weight and different sizes can not only achieve full load in loading capacity, but also make full use of the effective volume of vehicles to achieve the best results.

It is best to use computer to calculate the optimal solution of goods distribution.

Joint distribution.

Joint distribution is a kind of sharing at the level of property rights, also known as centralized cooperative distribution.

It is a mode of distribution that a large number of enterprises use jointly to make use of the same distribution facilities. The standard operation mode is that under the unified command and dispatch of the central organization, the main body of the distribution will jointly operate with business activities (or assets as ties) and coordinate operations in a larger area to provide a series of distribution services for one or a few customers.

There are two cases in this distribution: one is the joint distribution between small and medium production and retail enterprises, that is, the joint distribution is carried out in the same industry or the small and medium sized production and retail enterprises in the same area, which can not only reduce the pportation cost and low efficiency, but also can reduce the cost of the distribution of the enterprises, the ability of distribution can be complemented, and it is beneficial to ease the urban traffic congestion and improve the utilization rate of the distribution vehicles; the second kind is the combination of several small and medium distribution centers.

Postponement strategy

In the traditional distribution plan, most stocks are set according to the forecast amount of future market demand, so there is a prediction risk. When the pre measurement is not in line with the actual demand, there will be too much or too little inventory, which will increase the distribution cost.

The basic idea of postponement strategy is to postpone the appearance, shape, production, assembly and distribution of the product as far as possible until the customer orders have been received.

Once the order is received, it is necessary to react quickly. Therefore, the basic premise of adopting the postponement strategy is that the information pmission is very fast.

Generally speaking, enterprises implementing the postponement strategy should have the following basic conditions: (1) product characteristics: high degree of modularity, high product density, specific shape, easy representation of product characteristics, and change of product volume or weight after customization; 2. Production technology features: modular product design, high degree of intellectualization of equipment, and little difference between customization process and basic process; 3. Market characteristics: short life cycle, large sales fluctuation, fierce price competition, large market changes, short lead time of products.

There are two ways to implement postponement strategies: production delay (or formation delay) and logistics delay (or time delay), and there are often processing activities in distribution. Therefore, the implementation of delivery postponement strategy can not only adopt a delay mode, but also adopt a time delay formula.

Specific operations often occur in areas such as labeling (formation delay), packaging (formation delay), assembly (formation delay) and pmission (time delay).

An American company that produces tuna can reduce the inventory level by adopting a delayed strategy to change the delivery mode.

Historically, the company has designed several labels for different markets in order to increase market share. After the products are produced, they are pported to distribution warehouses around the country to store them.

Because of different customers' preferences, several brands of the same product often sell a certain brand and are out of stock, while others sell poorly.

In order to understand this problem, the enterprise changed its past practice. When the product was not labelled, it was pported to the distribution centers for storage. When the specific order requirements of the sales outlets were received, the corresponding labels were placed according to the brand labels designated by the outlets, thus effectively resolving the contradiction between the shortage and the inflation, thus reducing the inventory.