{"id":6912,"date":"2025-08-01T00:17:04","date_gmt":"2025-07-31T16:17:04","guid":{"rendered":"https:\/\/about.thelorry.com\/my\/my\/?p=6912"},"modified":"2025-08-04T12:36:54","modified_gmt":"2025-08-04T04:36:54","slug":"6-tips-on-how-to-save-logistics-costs","status":"publish","type":"post","link":"https:\/\/thelorry.com\/my\/blog\/6-tips-on-how-to-save-logistics-costs\/","title":{"rendered":"6 Tips On How To Save Logistics Costs"},"content":{"rendered":"\r\n
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by TheLorry<\/strong> <\/a>on 1 August 2025.<\/p>\r\n

The transportation needs of any business must be managed strategically to clearly save logistics costs<\/strong> and improve profitability. How do you control every variable? Start by working with bottom\u2011line numbers on shipment volume, route, delivery speed, and handling. This article uncovers 6 actionable tips\u2014each backed by real benefits and examples\u2014to help you drive down overall logistics costs while maintaining service quality.<\/p>\r\n\r\n\r\n\r\n

1. Freight Network<\/a><\/strong><\/h4>\r\n\r\n\r\n\r\n

The best logistics manager\/team will understand the industry. They will know the\u00a0best way to manipulate and oversee the flow of transportation to optimize timely delivery<\/em>. Managing the freight network is the most important job of shipping goods and a business may handle internally or use a third party.<\/p>\r\n\r\n\r\n\r\n

Just as an internal shipping manager would be, the third party logistics provider (3PL) is responsible for taking goods from Point A to Point B in the most cost efficient and timely manner.<\/p>\r\n\r\n\r\n\r\n

Hiring a 3PL may be preferable if your business is looking to scale fast<\/em>\u00a0\u2013 as it would allow\u00a0you to\u00a0utilise\u00a0their\u00a0existing assets (warehouse, lorries), networks,\u00a0relationships and industry expertise.\u00a0As some 3PLs have agreements to carry massive volumes, they may be able to offer your business\u00a0competitive rates.<\/p>\r\n\r\n\r\n\r\n

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2. Consolidation<\/strong><\/h4>\r\n\r\n\r\n\r\n

Imagine you have only a few cartons\u00a0of goods to be delivered from Kuala Lumpur to Penang. Chartering a full 1 tonne lorry (which may cost you RM500-600) may not be cost effective. Courier may\u00a0not be an option as their rates can be expensive.<\/p>\r\n\r\n\r\n\r\n

One of the ways you could save cost is through\u00a0consolidation<\/em>. A consolidator will pick up your shipment\u00a0and consolidate them with other shipments and build up a full load.<\/p>\r\n\r\n\r\n\r\n

To illustrate, say you have 3 cartons of goods and based on cost considerations you are willing to pay up to RM100. Another customer would have another 5 cartons of goods and willing to pay RM150. The consolidator\u2019s job is to maximise capacity by filling up his lorry with as many goods as possible.<\/p>\r\n\r\n\r\n\r\n

Some consolidators can provide fast delivery (next day) but some may only be able to deliver after 2-3 days. It is important for you take this into account when deciding on which service to engage.<\/p>\r\n\r\n\r\n\r\n

3. Purchasing Insurance<\/strong><\/h4>\r\n\r\n\r\n\r\n

The worst thing that could happen is when you customers receive items that are damaged. Worst yet, items could go missing en route.<\/p>\r\n\r\n\r\n\r\n

It\u2019s best to purchase cargo insurance as well as goods-in-transit insurance so that you are well-protected in any eventuality. Some\u00a0transporters\/3PLs would offer GIT insurance which covers any lost\/damage cases due to the negligence of the driver during transit. It is an additional cost but it would give your business a piece of mind.<\/p>\r\n\r\n\r\n\r\n

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4. Software Solutions<\/strong><\/h4>\r\n\r\n\r\n\r\n

With modern technology<\/a>, many processes may be automated and save a business much time. Software solutions exist that can provide fast preparation of shipping documents which often eliminates careless errors. Delivery time may be improved by automated procedures because important processes can be handled without errors or delays.<\/p>\r\n\r\n\r\n\r\n

This ultimately results in optimum customer satisfaction<\/a>.<\/p>\r\n\r\n\r\n\r\n

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5.\u00a0Supply chain issues<\/strong><\/h4>\r\n\r\n\r\n\r\n

Your business might face supply chain problems that may result in costly remedies. For instance, if there is a delay in delivery of a full shipment, you might feel the need to send goods at an express rate to appease customers.<\/p>\r\n\r\n\r\n\r\n

When such a situation occur, you may find benefit in splitting a shipment so that only the quantity needed to be expedited will go on express delivery while the balance can go at a more affordable rate with a standard service.<\/p>\r\n\r\n\r\n\r\n

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6. Types of Transportation<\/strong><\/h4>\r\n\r\n\r\n\r\n

If you have an export business (say a electronics business that ships to Thailand), a judgment call has to be made as to whether you\u2019d like to send items via air, sea or road and decide on the most cost effective option<\/a>.<\/p>\r\n\r\n\r\n\r\n

Sending items via road will be cheaper but will take longer but it will be cheaper than air or sea.<\/p>\r\n\r\n\r\n\r\n

As a rule of thumb, you could perhaps sort your shipments into Urgent and Non-Urgent. For Urgent shipments, it makes sense to send via air \u2013 although it will cost you an arm and a leg. For Non-Urgent it will be more cost effective to send via sea or road, depending on the quantity and location of delivery.<\/p>\r\n\r\n\r\n\r\n

A 3PL would be able to advise you on all these options. It is wise to get at least 3 quotations from different carriers to understand the market rates.<\/p>\r\n

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Frequently Asked Questions (FAQ)<\/strong><\/h2>\r\n\r\n

What is freight consolidation?<\/h4><\/summary>
Freight consolidation means combining multiple small shipments into one full load to cut cost and improve efficiency.<\/div><\/div><\/section>

How does using a 3PL help save logistics costs?<\/h4><\/summary>
3PLs provide scalable networks, bulk rates, and low capital commitment to reduce your transport expenses.<\/div><\/div><\/section>

Why purchase cargo or goods\u2011in\u2011transit insurance?<\/h4><\/summary>
Insurance protects against loss or damage during transit, giving peace of mind despite added cost.<\/div><\/div><\/section>

What software solutions reduce logistics costs?<\/h4><\/summary>
Shipping and TMS software automate documentation, route planning, and tracking to avoid errors and delays.<\/div><\/div><\/section>

How can splitting a shipment lower costs?<\/h4><\/summary>
Splitting lets you send urgent items by express and non\u2011urgent via standard, saving on premium rates.<\/div><\/div><\/section>

Which transport mode is most cost\u2011effective?<\/h4><\/summary>
For non\u2011urgent deliveries, road or sea is more affordable than air freight, depending on volume and distance.<\/div><\/div><\/section>","protected":false},"excerpt":{"rendered":"

by TheLorry on 1 August 2025. The transportation needs of any business must be managed strategically to clearly save logistics costs and improve profitability. 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