Reviewing logistics costs today is vital for any business because the pandemic is affecting everything from trade, manufacturing, to supply chains. However, reducing logistics costs is only one part of the supply chain. To reduce costs and save money it would be beneficial to review your supply chain and how goods are protected while in transit. Managers need to know if they are using the right shipping materials for safety and protection, such as strapping and metal cages, because less damaged goods mean reduced logistics cost.
What are hidden costs in a supply chain?
Depending on a particular industry, there can be different factors that contribute to hidden costs in the supply chain. Some common factors are:
- Fuel costs.
- Delayed arrivals at ports, leading to higher transportation fees.
- Subsequent delivery delays.
- Damage to products and goods in transit as a result of using inadequate materials.
The first three factors may be hard to influence to reduce costs, but much can be done to prevent damaged shipments.
Damaged Shipments
Damaged or “unsaleable” shipments amount to around US$15 billion annually, worldwide. Shipments get damaged while being transported, whether en route from manufacturer to distributor or site. The leading causes of damaged shipments usually are the use of poor platforms for stacking, improperly loaded pallets, wood pallet breakage, poorly applied single-use shrink or plastic wrap, and shifting of loads in transit due to poor strapping.
This is the part of logistics where you can significantly reduce costs in the long-term. Managers should review the following areas of logistics and see how DAYWALK products can be essential in reducing damage to shipments.
Focus on safety
Strapping
Since goods can be damaged when they shift while being transported, the use of chains, ropes, and metal straps should be replaced with more durable and reliable strapping systems – PET straps (Polythene Terephthalate) and Polywoven straps. These strapping materials are safer and a good investment in the long run in the prevention of damaged goods.
Instead of using flimsy wood pallets that require the use of single-use shrink film or plastic wraps to secure the load, shift to reusable and durable metal cages as a long-term investment. They are reusable over a long period due to their durable galvanised metal finish, metal sheet flooring, and steel mesh sides. The gates and lid are also lockable for added security against theft.
Steel pallets
For equipment heavier than 2000 kg, a timber pallet or crate may not be rated to be compliant for transport. Such equipment must be transported on compliant, engineered transport pallets or the company and managers could be at risk of fines and legal consequences. Engineered steel pallets and modular bolt-down systems give you peace of mind.
Preventative measures
Another cause of damaged goods while in transit – especially with metal-based materials, parts, equipment, etc. – is rust and corrosion. To prevent the causes of rusting, companies can invest in anti-rust products such as VCI (Vapour Corrosion Inhibitor) Emitters, VCI Paper, and VCI Desiccants.
DAYWALK Solutions Reduce Logistics Costs
Strapping, metal cages, steel pallets, and anti-rust products from DAYWALK can help solve your rising logistics costs. Ready to discuss your needs? Talk to any of our friendly representatives by calling us on 1300 662 987, use our Online Chat Support, or send us your enquiries here. We provide systems and solutions to complex storage and transport challenges. We are ready to discuss your latest ideas and challenges in safe storage and transport.