For foreign trade enterprises and cross-border e-commerce enterprises, the high cost of international logistics has greatly compressed the profit margin of enterprises. So international logistics cost control is a compulsory course.
Logistics costs are divided into transportation costs, warehousing costs and management costs.
Transportation costs and warehousing costs account for a large proportion of the total cost, the optimization of logistics costs for these two aspects is the best way to improve the economic efficiency of enterprises.
international logistics cost control
International transportation is a common form of transportation that can cross borders and customs. The logistics costs incurred are not particularly high, but there are just a few factors that can sway the price point, so what are the main factors that influence the price of this type of transportation activity?
Here is also an article on how to save transportation costs from China to the United States, which will help you gain a more comprehensive understanding of international logistics cost control:
Factors affecting international logistics cost
Choice of Transportation Methods
Sea, air and land transport are the most common modes of transportation, with sea transport being less expensive but more time-consuming, air transport being more expensive but faster, and land transport being somewhere in between.
Therefore, when choosing the mode of transportation, it is necessary to weigh factors such as the timeliness requirements, weight and volume of the goods.
The destination is equally
Factors such as tariffs, freight rates and local market demand in different countries or regions all play a role in logistics costs.
For example, the transportation of goods to certain countries may need to go through multiple transit points, which will increase freight and time costs. Therefore, when choosing a destination, it is necessary to fully understand the policy, geographic and economic environment of the destination.
Types of cargo
Different kinds of goods need to be transported by different modes and equipment, such as dangerous goods, bulk goods and light bubble goods, which have relatively high transportation costs.
Therefore, when choosing transportation goods, it is necessary to understand the characteristics of various kinds of goods and make reasonable allocation and packaging according to the actual demand.
Supply chain synergy
Supply chain synergy includes the synergy of suppliers, producers, logistics enterprises and sellers. Efficient supply chain coordination can reduce inventory, improve transportation efficiency and reduce logistics costs.
For example, real-time inventory management and accurate production planning can reduce inventory costs and delivery lead times, thereby reducing international logistics costs.
If you want to know more details about international logistics cost control, you need to konw how to calculate the shipping cost, click on this article:
If you don’t want to just read these text interpretations, you can click on the video below to help you understand more quickly about international logistics cost control：
Key elements of international logistics cost control
Choose the best logistics channel
Different channels will have different international logistics cost, and by comparing and choosing a suitable logistics channel, the channel cost can be greatly reduced.
Reasonable choice of transportation mode
The common modes of transportation are sea transport, air transport and railroad land transport. Enterprises should consider the cost of transport vehicles, transport speed, nature of transport and other aspects, combined with the quality and characteristics of the goods and other factors, and reasonably select a single or multimodal five-level logistics solutions to achieve logistics cost control.
Control of packaging costs
For Amazon sellers, if you are selling winter jackets, the volumetric weight of the product will exceed the actual weight. So, in order to make the headway and FBA more convenient for transportation, we have standardized the package size of the goods.
In addition, because FBA charges different fees for different sizes of goods, we have adopted three-dimensional packaging to maximize the control of the packaging size of the goods to reduce the delivery costs and storage capacity, so that both the number of goods that can be shipped in the future or the cost will have some savings.
international logistics cost control
As the U.S. station began to calculate the volume weight this year, the impact on small products is relatively large, such as swimsuits or yoga pants.
For these sellers, this seller suggests not to use plastic bags to pack, because these packages will make it more volumetric weight, may be the light FBA delivery fee will be charged about 2 dollars more. Operate like this, you are saving money on every order, and this part can actually be operated by sellers.
Choose a strong freight forwarder
Generally stronger freight forwarders will have in-depth cooperation with ship transportation companies and airlines, which is more advantageous in terms of price.
At the same time, the freight forwarder is more professional for booking, delivery, customs clearance, commodity inspection, warehousing, packaging and other cumbersome work, and has more efficient solutions.
In addition to the above methods of cost control, internal cost cutting is also a good choice for the flow of goods within the enterprise, there can also be efficient and low-cost way.
international logistics cost control
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