ERA Takes Strategic and Holistic Approach to Logistics

There are many components impacting your logistics costs including transportation modes, route optimization, payment terms, packaging impacts, and pricing structures.


Our logistics experience tells us that most companies manage this very important and large dollar spend in a tactical (rather than strategic) manner. An example of this is focusing strictly on tariff discounts while ignoring other areas such as inbound freight. Uncovering the savings potential for inbound freight requires knowledge of what to ask and where to look. It requires time and diligence to uncover the savings opportunities, which are often quite large. In this example, there is much more to the contract than tariffs. Having knowledge of these key drivers of costs are often overlooked for lack of knowledge.


Large sums of money are being transferred to your suppliers. Could your company put these dollars to better use while also meeting internal  customer service and growth objectives? In some cases, improvements at a significantly lower cost are possible.


Different people within the organization often manage logistic elements. Other departments within the organization make decisions that have significant influence over the ultimate cost to ship or receive a package. These decision points are often managed in silos that are not aware of their overall impact on logistics.


The solution is to develop a deep understanding of your shipping profiles and to manage the entire logistics spectrum in a strategic and holistic manner. The best place to begin is to ask and answer the following questions:

•    What are the characteristics of what we ship/receive?

•    Where do we ship/receive it?

•    How do we ship/receive it?

•    Why do we ship/receive it the way we do?


It’s not uncommon to hear “we do what we do because that’s the way we’ve always done it.” Answering these questions, communicating and cooperating across silos that influence freight will uncover many opportunities for significant, quantifiable hard cash savings.


For example, sales or marketing may have no knowledge that a delay of one day for a delivery can save the company a million dollars. They might be simply unaware of this added cost. This  is often the result of not communicating outside of silos. The consequence can be the loss of significant dollars. 


There are many other examples where very large dollars are being spent unnecessarily. How can your company cut cost and implement a holistic logistics program?


Understand how each decision impacts costs and be sure to communicate across your logistic silos. Honestly answer the four questions and you’ll be surprised by what you learn and how much you can save! It’s called Holistic Logistics. 

  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client
  • client