In a context of economic pressure, rising costs and high customer expectations, supply chain departments must act with method. Reducing logistics costs is no longer a one-off objective, but a daily management challenge. Here are five key levers to sustainably improve performance.
1. Transport: optimize routes and use simulation to support decision
Transport represents a significant share of the logistics budget. Several levers can be activated to reduce its cost:
- Group collections (multi-pick) or deliveries (multi-drop) to maximize load factors.
- Consolidate flows with other sites or partners (pooling) on regular lanes.
- Simulate different transport plans to arbitrate between cost, lead time and service level.
Click&track tms makes it possible to manage multiple routes, identify consolidation opportunities and monitor performance indicators. These practices are widely used in the food industry and mass retail to control costs while maintaining service quality.
2. Supplier governance: strengthen relationships to negotiate more effectively
The relationship with carriers should not be limited to rate negotiations. To better control costs, it is useful to:
- Regularly monitor performance indicators (on-time delivery, disputes, penalties).
- Update contracts in line with changes in volumes and expected service levels.
- Identify and reduce hidden costs (waiting times, demurrage, handling fees).
Interlog Group ‘s consulting team supports manufacturers in this approach by carrying out transport audits and structuring more effective governance with service providers.
3. Inventory and forecasting: better anticipation to limit excess
Inventory comes at a cost: storage, obsolescence and emergency replenishment. Excess stock often results from poor demand forecasting or insufficient coordination with customers.
To keep inventories under control, companies need to:
- Integrate market signals (history, promotions, seasonality).
- Share data with distributors through collaborative approaches (VMI, CMI).
- Monitor simple but effective indicators (turnover, coverage, stockouts).
OCS mvi helps streamline exchanges between suppliers and distributors by adjusting replenishment in real time based on actual demand.
4. Digitalization: automate tasks to gain efficiency
Every manual re-entry or incorrectly completed document costs time and money. Digitalization makes it possible to:
- Automate repetitive operations (label generation, carrier selection, tracking).
- Improve flow traceability and data reliability.
- Reduce errors, particularly in international or customs flows.
Transware optimizes shipment management, while Cosmos secures the processing of customs formalities. These tools reduce lead times and improve service quality.
5. Analytical steering: use data to support decisions
To reduce costs, companies must clearly understand where they originate. Effective steering relies on:
- A clear view of costs by customer, channel or product family.
- The identification of unprofitable or suboptimal areas.
- Analytical tools to simulate logistics scenarios (new network design, alternative carriers, reshoring).
Interlog Solutions’ software, combined with studies conducted by Interlog Group, helps structure these analyses and support informed decision-making.
Conclusion on logistics costs
Reducing logistics costs requires a structured, continuous and collaborative approach. Transport, inventory, suppliers, digitalization and data: every lever matters.
For more than 20 years, Interlog has been supporting manufacturers and distributors in improving logistics performance. Its solutions and expertise help companies manage their transport budgets and control their operations. Interlog Group has made Freight Spend Management a key pillar of its mission, with a comprehensive approach combining tools, consulting and personalized support.
Sources :
- The Hackett Group, “The Supply Chain Agenda 2024 – Key Issues“, avril 2024.
- Q4 2023 European Road Freight Rate Development Benchmark, Transport Intelligence, février 2024.
- “Impact of digital transformation on logistics performance“, Journal of International Logistics and Trade, décembre 2024.