People. Process. Systems.

Ryan Feely
18th December 2020

If you want to improve your company’s bottom line, then looking at your supply chain can be the answer. Due to the complexity of supply chain, it is possible to find several different options that can help to reduce supply chain costs.


Using good supply chain management to reduce costs is not an easy task, but the benefits can really improve your company’s bottom line. Here are 6 important ways that supply chain management can reduce costs.


1. Look for Inefficiencies

One of the most valuable things a company can do is look at their fulfilment workflow from start to finish. The key thing to look for is manual tasks that can be automated or bottlenecks that are slowing down the process. This is the perfect time to speak to employees and get their insight into how things are working and what problems exist.


2. Better Utilisation of Available Space

Warehousing is often a large investment and competition is only increasing these costs each year. Therefore, ensure the space you are in is fit for purpose and that you are utilising the available space as best as possible. Should you find that better management of the area requires less space, then you can save longer term by downsizing where you store goods.


3. Use Quality Packaging to Reduce Supply Chain Cost

Moving finished products are the country, or the world, can be a potentially damaging task as several people handle and move the product. Good quality packaging can lower the chance that your product is damaged in transit, helping to save money on returns as well as improving the end customers experience.


4. Look at the End-to-End Picture

At least once per year you should ensure that your company is taking the time to look at the full end-to-end picture of their supply chain. The purpose of this is to question each stage of the chain and see where improvement opportunities lie. This could include eliminating parts, improving areas or general efficiency improvements.


5. Improve Labour Management

To reduce supply chain costs, it is often prevalent to look at your labour costs. This does not have to be cutting team members, rather it is about looking for ways to manage teams more effectively. This can reduce turnover rates and create more diligent teams that work with improved efficiency.


6. Use Robust Sales Planning

While it is impossible to predict the future, robust sales planning will look at things such as previous sales trends, marketing pushes, or external factors that could impact on demand for your product. When done well, this helps to ensure you do not experience a shortage of product or end up with a costly overstock of supplies.



Now you have six different ways to reduce supply chain costs it is time to start looking at how they could benefit your business. Make sure you take the time to consider your options and remember that optimising your supply chain is an ongoing process, not a once and done are.


If you would like to find out how our supply chain experts can help your company reduce supply chain costs, then get in touch with us.

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