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logistics ROI

Top 10 Ways Logistics Companies Can Reduce Delivery Cost & See High ROI

Increasing transportation logistics costs go hand in hand with the companies for which shipping freight plays a huge role. Besides the usual price hike for fuel and equipment, shipping companies face extra cost-related pressures from several different directions.

Here are some factors that can affect logistics costs:

Increased customer expectations

The global competition

Increase demand for transportation logistics

Fewer drivers

Lots of paperwork

Cost reduction is always the key focus for logistic businesses. But the speed of the cost hike for shippers can put up the competitive challenges.

How to Improve Return on Investment?

We know that every business is unique and has a level of managing investments in terms of processes and technology. With the right management of logistics, you can increase your profitability and ensure your business’s booming growth.

There are some crucial factors that you need to consider in order to generate a more significant ROI and reduce delivery costs.

When you focus on the right area, you can dramatically improve your company’s operations, which will help you deliver your customers’ preferred results.

1. Data Accuracy

Data accuracy is the foundation for any logistics optimization effort. You must deliver all the comprehensive data points on time so you can use updated information to make informed decisions.

For several companies, implementing a delivery management system can automate most of the business data tasks, such as tracking inventory levels or order status.

It can also eradicate the risk of human errors corresponding to manual data input. Automating your primary responsibilities, while altogether getting notified with vital information, will help you in easy decision-making and company growth.

2. Full ROI Analysis

Whether you have started to search for a DMS or to begin its implementation, do a full analysis of ROI. It’s suggested that you calculate all the potential costs linked to the system and consider those against your predicted savings. When you have this data in hand, you will know when to rethink your investments.

3. Eyes on the End Goal

Everyone in your business must share a common perspective for success. Always focus on your mission and the objectives. If reducing freight costs is your prior goal, make sure to communicate that to everybody.

4. Define your Clear Action Plan

Define roles and milestones for implementing your projects. Hold meetings regularly to discuss your developments, challenges, and the path you’ll choose. With a proper plan, you can ensure the accountability of all the related people and avoid possible hazards along the way.

5. Employee Training

At first, training your employees may not feel like an essential part of optimizing your logistics business. In actual fact, it can significantly affect your capability to utilize data-based insights and turn them into chances to enhance your ROI.

Whoever is involved in logistics can influence your business’s potential growth, from your inventory manager to the delivery person.

So, employee training should be your crucial focus while optimizing your logistics efforts. When they are trained for new skills and techniques, they can perform more efficiently. Moreover, they will know when and what to react in particular situations.

6. Ready for the Change

Change is inevitable, and you should never overlook it while implementing your system. When it’s done well, it can make a huge difference in your business.

Communicate with your team members about what’s happening and when. Always make sure that they understand how your Delivery management system will impact their everyday tasks. It will simplify concerns and fortify adoption.

7. Real-time Process Evaluation

If you are using a DMS, but it’s outdated, it may hamper your ability to bring out the value of the technology. Look for ways to evaluate your current processes and make the most of your DMS.

8. Measure Every Success

Once you have implemented the system, track each success you get. In case you see savings on the freight costs, keep them documented and communicate it to your team and business partners.

Once the breakeven point on the ROI cost is achieved, keep your executive informed about the same. It will let you build your case for future investments.

9. Route Optimization

It’s a value-addition to enhance your logistics ROI. You can find ways to optimize routes for both your orders and customer deliveries.

With the proper technology tools to find the fastest and safest routes can help you attain quick deliveries for your customers, that will significantly increase customer satisfaction.

Besides, your suppliers’ delivery schedule and route optimization will ensure that you have all the critical items in your inventory. The process can save your overall delivery costs.

10. Choose Cloud Technology

A cloud-based delivery management system enables rapid implementation, from weeks to just some months. You can access it by multiple groups in different locations, and it offers the benefits of automated feature upgrades without affecting your workflow.


In the end, each implementation is different, and you need to focus on what matters the most for your logistics business and freight operations. With an ideal Delivery Management system, you can effectively reduce delivery costs and boost your ROI.

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