In his speech at the Global Supply Chain Week on March 7th, Julian Van Erlach, Senior Vice President in charge of supply chain at FabFitFun, posed three questions to help logistics managers leverage their transportation network and reduce costs for customers.
The first question is whether to invest in warehouse space or not.
Mr. Van Erlach proposed that businesses should consider the needs of their customers and their own capabilities, avoiding unnecessary costs by utilizing the 3PL logistics service provider network.
The second question is about what the partnership relationship will look like.
Mr. Van Erlach advises businesses to diversify their logistics services and optimize shipment sizes to reduce the environmental impact of transportation and compete for strong freight rates.
Finally, the third question is how to cut packaging costs.
Mr. Van Erlach explained that meeting the carrier's packaging requirements and negotiating with product suppliers about transportation strategies can help save more costs. Additionally, sharing warehouses can help carriers maximize truck space and save costs for shippers. "This is a combination of strategies that many businesses are seeking. They always ask how to transport more goods while still making more profits. Shared warehouses and trucks are the solution
," said Julian Van Erlach