• 4 Mistakes to Avoid When Reducing Logistics Costs

    One of the biggest mistakes a business can make is focusing too much on quality or cost, instead of focusing on value. Value packs the best of both worlds; it is all about charging the best cost without compromising the quality, and vice versa. Unfortunately, when shipping companies try to cut cost, they tend to do so by cutting corners. They end up in position worst then before.

    Reducing Logistics

    At Nexxio, we serve a clientele that involves big and small businesses. We are lucky enough to have a very close yet unbiased view of what goes right and what needs to be improved. As such, we are aware of many common mistakes they when trying to bring down the cost of logistics. Caution, for these mistakes might make you end up with a higher cost, or will refrain you from making the most out of your shipping software.

    So, let’s clear the mist over the mystery, and discuss four mistakes you shouldn’t be making.

    1. DIY Decisions

    The first thing on any kind of business mistakes list is DIY. Businesses tend to ruin it all when they try to do it all. You might think that in-house logistics will save you from the heavy fee you pay to logistics companies, but think again. Not only are you investing in full time resources, managing the logistics department might be robbing you from the precious time that can otherwise be invested on improving core functions.

    2. Procurement Errors

    Procurement errors lead to returns and refunds, which is a great blow to the bank if too frequent. These errors show lack of care in terms of inspection, packaging, and documentation. If you are shipping the wrong size, color, or product, or a product with missing parts, you will have to repeat the whole process, resulting in doubling the cost.

    3. Overlooking Custom Standards

    Similarly, lack of attentiveness during the classification of the product on the invoice, you might end up paying higher than necessary taxes and duties. Try to be more vary of the custom standards related to the kinds of goods you are dealing in. While the difference won’t be much noticeable for smaller shipment, larger shipments might save you a considerable amount.

    4. Primitive Technology

    Any technology that doesn’t offer you complete automation and seamless integration is primitive and it might be hurting your account more than you realize. Manual work doesn’t just take more time, it opens more room for mistakes and errors. It is also one of the key reasons behind delays. Also, without a fully integrated system, you may be putting your data at risk.

    So, are you making any of these mistakes? It’s never too late to rectify the wrong. Nexxio is committed to helping its client optimize their process and power their business with the most state of art technology. We offer a number of solutions including ecommerce shipping software that allows for absolute automation. Get in touch to find out how we can help you bring down the logistics cost.


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