5 Tips for Reducing Supply Chain Costs

In a world where globalisation is something even small businesses can do and there are a whole range of routes that can be taken to get products to consumers, supply chains are a complex part of a business’s operations. They can represent large amounts of expenditure but are an essential cost to sell products. Any business can optimise their supply chain to reduce costs; they don’t have to be corporate giants. Here at Dennison Stretch Film, we’ve learned a couple of things from helping our customers get their products through the supply chain and we’ll happily share a few of these tips with you so that your supply chain can cost as little as possible while still serving you well.



Most carriers will offer insurance to businesses when they are shipping goods to cover the shipment should anything happen to it in transit. Although this may seem like a good idea that will help you avoid any losses in the case of a mishap, it may turn out that you don’t need the insurance at all.

Some business’s own insurance policies actually cover goods in transit anyway, meaning that the carrier’s insurance is completely redundant. Check over your business’s insurance policy to check whether goods in transit are covered or not before you take up any carrier insurance.

Best Most of Transport

There are a lot of options that you have when transporting goods, even if it’s just domestically. There’s road, rail, air and sea to choose from, and plenty of more options even within these modes of transport.

Before you send your goods anywhere, you should take a look at all of your options to find the best one for the situation. Even after choosing the medium, you should make sure to get at least three quotes to be able to choose the cheapest option.

Set up KPIs

Knowing exactly what is going on in your supply chain will allow you to make more informed decisions, which means that less unexpected costs need to be paid and money-saving initiatives can easier be implemented. Having a range of effective KPIs (key performance indicators) set up will give you this insight into your supply chain.

Different KPIs work better in different businesses and what works brilliantly for one may have no use at all in another. The best way to find out which will work in your business is going through your objectives and identifying which KPIs will give you the best insights into the success of these.

Outsource Smartly

In a time when outsourcing is fairly big in business, it’s no surprise to know that over 85% of businesses outsource some part of their supply chain. Although it’s mostly transporting and warehouses that are outsourced, any operation in a supply chain can be outsourced.

Outsourcing can save businesses money, but unexpected costs can quickly bump up the supply chain expenditure. These costs tend to come from poor choices of service provider who don’t deliver the expected service.

Having some part of your supply chain outsourced will be beneficial, but you must take care in choosing the provider, making sure that they are capable and willing to deliver the service you want.


Supply Chain Network Design

Your supply chain network is every point between you and your consumer that your product travels along. They can be long, with many points between you and the consumer, and wide with many possible routes. Generally speaking, a shorter supply chain will be more reliable because stock doesn’t need to be stored by as many agents along the way.

There is no “perfect” supply chain network, as each will work differently for different businesses and consumer groups. Finding the perfect supply chain is not an easy task and involves a lot of trial-and-error before you find one that will get your product as quickly as possible, to as many consumers as possible, with the least amount of wasted money.



Hopefully after reading this article you’ll hopefully have a few ideas on how to reduce the cost of your supply chain. Here at Dennison Stretch Film, we supply a whole range of materials to help you ship your products, including high-quality shrink wrap and pallets. If you would like some more information about what we can do for you, don’t hesitate to contact us on 01612 421 275 and a member of our team will be happy to help.

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