Manufacturers and shippers often feel pressured to make quick decisions about their supply chains in response to disruptions or sudden changes in volume. In their attempt to avoid cost overruns and service failures, they sometimes fall short because they haven’t taken the time to consider the total landed cost of goods and balance cost with service and delivery times. Shippers should consider all costs, especially transportation and warehousing, rather than focusing solely on one aspect. Here are some key reasons why:
Holistic View
Total landed cost provides a complete picture of all expenses involved in getting a product to its final destination. By considering all costs, shippers can identify hidden expenses that might not be apparent when only looking through the warehousing or transportation lens. For example, employing a 3PL very close to the port might save drayage costs from the port to the transload or distribution facility, but real estate costs are often substantially higher near the port resulting in increased storage costs. Therefore, if a shipper focuses only on the cost of drayage, they might not realize that their total landed costs could be lower by paying more for drayage to a facility a bit further from the port.
Improved Decision Making
Understanding the total landed costs helps in making better decisions about where to source products and how to distribute them. This can lead to a more efficient and cost-effective supply chain configuration. Taking the time to perform a comprehensive cost analysis allows shippers to mitigate risks and find the best partners for service and value.
Customer Satisfaction
Service and delivery times are crucial factors when evaluating network optimization decisions. Shippers must balance decisions about service quality and total costs to make the best choices for efficiency, risk mitigation, cost control, and overall supply chain performance.
Coastal Logistics Group
CLG offers economical storage rates at our 200,000 sf facility in Summerville, SC about 20 miles from the Port of Charleston. Combined with drayage from the port, CLG Charleston offers customers unmatched value. With two facilities totaling 585,000 sf less than 5 miles from the Port of Savannah, drayage to our facilities on Sonny Perdue Drive in Garden City, GA is quick and affordable. Despite rents typically higher closer to the port, CLG has negotiated competitive leases for the Savannah market enabling superior savings on total landed cost for transportation and warehousing. In addition, we provide elevated value and service in our 122,000 sf Norfolk, VA facility.
We have the expertise and resources to help you look at the big picture of your total landed costs and service metrics when evaluating your supply chain needs. As a port-centric 3PL, we are equipped to provide you with the best overall value and solution for your drayage and transload needs. Additionally, we can handle your inland distribution needs, including transportation of your goods via CLG Truckload Solutions. For bespoke turnkey logistics solutions, CLG is on your side. For more information or to request a quote, contact sales@clg-inc.com.