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Reduce international logistics costs by adjusting supply chain structure and selecting logistics suppliers

Firstly, it is necessary to achieve a reasonable reduction in transportation costs. What is a reasonable situation? It is necessary to ensure that procurement, production, and sales are in a low-risk, normal, and stable state. Due to the complexity of quantitative data analysis methods involving supply chain management, they are not suitable for general trade customers. Interested friends can understand for themselves. The following are three aspects of how to reduce logistics transportation costs in the context of rising international logistics prices: adjusting the supply chain structure, re selecting logistics suppliers, and long-term cooperation with logistics suppliers.

Adjust the supply chain structure. In the existing supply chain structure, analyze the proportion of internal international logistics costs, determine the trend of external logistics markets, and analyze based on short-term and long-term situations. If the international logistics market experiences short-term price fluctuations due to small probability events, there is no need to change the mature and complete supply chain structure.

If the international logistics market experiences permanent changes in logistics prices due to high probability events, it is inevitable to adjust the supply chain structure. For example, the global COVID-19 occurred. For large core manufacturing industries, suppliers can adopt a tracking strategy and establish factories in the customer's location for supply; For small and medium-sized manufacturing industries, they can only passively choose some raw material suppliers with small logistics radii, and do not cross borders. The risks of restructuring the supply chain structure include raw material quality, production capacity, and accounting cycles. The stability of the supply chain before the adjustment needs to be measured, compared, and ultimately selected with the new structure that reduces international logistics costs after the adjustment.

Re select logistics suppliers. When a company chooses to adjust its supply chain structure strategy, the result will inevitably change the original supply path of materials, components, and products. It is necessary to re plan logistics plans, select logistics suppliers, adjust transportation methods, transportation timeliness, and storage structure. Before selecting, all collectable storage logistics data must be sorted and analyzed to determine the cost-efficiency ratio of new and old suppliers, To form visual data, one is to reduce adjustment risks, and the other is to use the data to reduce differences and decide whether to meet expectations. If not, continue adjusting until the scheduled plan is completed.

Long term cooperation with international logistics suppliers. After selecting a reasonable supply chain structure and adjusting logistics suppliers, maintaining a long-term and stable cooperative relationship with logistics suppliers is aimed at accumulating credit. For example, new cooperative suppliers will not provide accounts for new customers without reason, but after long-term cooperation, both parties will provide long-term account support based on mutual trust. The secondary purpose is that long-term cooperation can sign long-term price agreements, and even lock in transportation costs, Reduce international logistics price fluctuations and ultimately ensure the long-term stability of the supply chain.




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