How to reduce your logistics costs

As a South African importer or exporter, it is always important to look for ways to reduce your import or export costs to be aware of hidden and unexpected costs and to be able to increase your efficiency. This is especially true when it comes to total logistics cost, as the cost of importing and exporting goods can be a significant expense for any business.

If your company operates in South Africa, you may be looking for ways to cut your logistics costs and streamline your entire supply chain. Here are a few tips to help you do just that:

1. Choosing the right logistics partner is essential, don’t just believe what you are told because partnering with a reliable and experienced logistics provider can help you get the very best rates and services for your import and export needs. Look for a partner that has a strong presence in South Africa and a proven track record overseas, not all companies have representation overseas, so make sure they partner with the right partners to ensure total success. TOP TIP: Make sure that they are digitally connected, it’s the manual processes that are where the problems arise.

2. You have the right to negotiate all terms, mainly your payment terms, where your cargo is sent if stopped by SAPS, SARS or Border Police:

3. Don’t be afraid to negotiate with your service provider, agent, transporter and shipping line to get the best rates and most importantly the best terms possible, when this happens. You can also ask for a discount for volume-based cargo or long-term contracts.

4. Always check that you are using the best routing when booking your cargo, I know that you hire people to do this but ask for a choice because if the cargo is not super urgent, you may allow for transhipments, and this will cost less, always know your shipping routes: Carefully consider the ways you use to shipping route to your best advantage to get your goods in and out of South Africa.

5. Look for opportunities to use multiple modes of transportation, such as air, sea, and land, to find the most cost-effective solution, sometimes you think it is the “quickest” but it may not always be the most cost-effective.

6. Finally, do not be scared to use technology to your best advantage: Leverage technology, such as track and trace, event alerts, pre and post-cost analysis transportation management, and platforms that give you the ability to see what is happening with your cargo, you also need to be aware of a problem when it happens and not after the event, digital logistics systems can enhance your visibility, to help you optimize your logistics processes and reduce costs.

By following these tips, you can effectively cut your logistics costs of importing and exporting out of South Africa and improve the efficiency of your supply chain.