2022: Record inflation due to continuously rising fuel prices! Is there a right move for companies' logistics departments?

5 Advices That Could Save Your Company's Logistics from Rampant Inflation and Ever-Rising Transport Costs.

It is a basic business truth that more than 50% of the price of a product is formed by transport costs or supply chain costs. The EU is currently in the midst of the biggest economic crisis to hit it since its foundation. Record prices for natural gas and oil, as well as for raw materials, have led to unprecedented inflation. Life has become dramatically more expensive. Ever-increasing transport costs have made logistics extremely difficult for producing companies. Some of them have been forced to stop production...

This article aims to provide some guidance to logistics managers and departments of companies on how to reduce their costs in an environment of unprecedented inflation.

5 Advices That Could Save Your Company's Logistics from Rampant Inflation and Ever-Rising Transport Costs

1. Re-evaluate all logistics practices. Focus on proven effective practices, such as the FIFO method (First In, First Out asset-management).

2. Full pooling inventory. Orient to the use of reusable carriers. Terminate non-recurring costs for disposable packaging. With an offer like this: https://zamko.eu/projects-and-solutions/how-this-pallet-box-offer-can-change-your-competitive-power/ - you could quickly and cheaply switch to returnable packaging. Collapsible pallet boxes will save you a lot of money on return transportation.They will also ensure greater security for teams and more flexibility in controlling space in your warehouse. Add folding racks into the equation.

3. Cut costs, not labor. The Covid-19 pandemic has led to a massive shortage of skilled labor in, basically, every business. Ensure the loyalty and dedication of your employees by providing some security in this severe economic crisis.

4. Create a safety stock (https://zamko.eu/projects-and-solutions/what-are-the-top-3-reasons-companies-hold-buffer-safety-stock/).

5. Create a crisis logistics unit to respond promptly to any supply chain issue. This will make it more resilient and flexible.