Logistics industry like many others is going through a major testing time, where uncertainty is highly affecting and raising questions about maintainability of business operations and their constant logistic costs to operate while facing stiff survival challenges.
Logistics account for nearly 14% of India’s GDP and 70% of it comes from road transportation. The exports have taken a hit, logistics and air/ship cargo is on its lowest sentiments. The entire global and Indian year of 2020 is proving to be a year of challenges and constant disruptions in business movement and market sentiments on a dull slope where recovery is the only thing to hope for business managers.
With this constant challenge is there anything businesses can do to reduce their overheads and costs through performance strategies in logistic dependent industries? Read more to know how business heads are reducing their recurring large scale logistic cost including transportation and freight through high-performance metcrate pallets(engineered metal pallets).
Different benefits of using performance logistic pallets in warehouses and exports as pallets:
1 Enhances your business’s responsibility and perception towards Recycling and Sustainability. Saves the business with carbon footprint liability and helps switch to an environment-friendly pallet usage. Many brands are quickly changing their logistic process to switch to metal-based packaging and pallets. Brands are becoming more responsible and want to reach their aggressive zero carbon footprint.
2 Direct Cost reduction compared to current wood or plastic pallets. As the metcrate pallet is proven to be cheaper than wood and plastic, the overall ownership cost turns out to be lower with additional benefits and functions which only metal pallets can provide. Cost reduction on pallets could be your important logistic cost-cutting strategy.
3 metalogi’s metal pallets are lighter in weight compared to wood and plastic pallets, thereby decreases the overall freight cost for businesses.
4 Indirect cost saving by the elimination of losses through damage/breakage saves the cost of manufactured products. Metcase(engineered metal light cases) are strong in structure to absorb any transportation shocks and loads.
5 Indirect Cost reduction by reducing the risk of safety of workers while handling packages, plastic and wood can break or tear apart when put with excessive load or due to load shocks. It is stable in structure and cannot be toppled.
6 Indirect Cost reduction of operation as it lowers resource cost in terms of time taken to handle materials.
7 Long Operating life saves regular maintenance costs, reusable even after one shipment in case needed. Export pallets reusable in many cases.
8 Earns direct scrapping cost after end of life of the pallet, brings the total cost of ownership low as the scrap cost is 30 per cent of the pallet cost. This is not possible in case of wood and plastic, an additional fee is charged in those cases which adds to the cost of logistic handling. This feasibility makes it more cost-effective.
9 Saves the direct cost of Fumigation as it needs no fumigation at customs entry (woods needs additional fumigation cost due to its absorbing surface and nature).
But, Why adopt performance logistics pallets for reasons apart from reducing associated logistic costs?
How can warehouses and export related businesses look at a new future with more savings, performance logistics and using more intelligent engineering technology to scale and be more effective at their warehouse? Leading to multifold benefits and leaps of innovation for progressing in warehouse business with a future-forward approach and logical business sense. As the future is changing fast, non-adoption of new agile methods slows the business responsiveness, weakens the delivery of promise, reduces competitive strengths and many business inconsistencies. Switch to a new performance-oriented future and create new innovation pathways for your business through engineered logistics pallets.
Current mid-term hike in Logistic Service Costs
Cost hike due to unavailability of truck drivers, higher maintenance & resource cost and current COVID affected emergency situation for logistic service providers, there are more hassles for operators to operate in the current situation. With delays and facing huge functioning issues on a daily basis by all stakeholders in the supply chain, hence making it expensive. This hike in costs is going to stay in the medium term till the time there is more than 50 per cent of customer side business activities are back in operation with earlier revenues.
The good news in the near future for the logistics ecosystem
A positive development is the formulation of our Government’s National Logistics Policy which will help Indian logistics ecosystem be cost-controlled & productive, seamless & scalable for Indian products to be more competitive in the export markets. This will change the entire landscape with consistent pricing and well-structured cost cappings. Hoping to see it being implemented in the year 2020.
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