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Eight Smart Ways To Cut Costs from Your Supply Chain

David Markowitz, Product Marketing Director

Published Date
March 14, 2024



Managing your supply chain cost-effectively can make or break a business.  Every operation wants to save money and reduce its operating costs.  But how can you ensure you can do that with your operation?

If your business can find cost saving measures within its supply chain, those savings can compound and significantly impact bottom line results.

In this post, Stord’s team of supply chain experts shares the best practices and lessons learned they have leveraged to reduce the operational costs of high volume e-commerce, DTC and B2B brands.

From parcel and inventory optimization, to order management tech and simplified packouts - the opportunities to find intelligent solutions both big and small are everywhere – if you know where to look.

What's the easiest way for e-commerce/DTC & B2B companies to save money and reduce spend in their supply chain / logistics operations?

(And how to make your finance team very happy)

Understanding Fully Delivered Costs

One way to reduce spend is by understanding the fully delivered cost of your B2B and DTC orders. From port-to-porch, simplifying technology integrations and vendor partnerships can improve administrative efficiency, reduce G&A costs, and deepen partnerships with a partner invested in the success of a brand's product flow.

Brian Lemerise, Vice President of Fulfillment

Don’t Delay On Crucial Software Solutions

Investing in a modern Order Management System (OMS) earlier in your growth journey is a key element of saving logistics spend. An OMS implementation doesn't need to be a nine month / million dollar investment. Brands don't need to wait till they get to enterprise scale to take advantage of intelligent orchestration and cost saving capabilities. 

For example, Stord's OMS is built by teams who deeply understand fulfillment challenges and the need to be flexible and self-service. Our OMS allows companies to focus on their consumers and brand, while automating order routing, customer service, and rate shopping decisions. And importantly, as a modern platform, Stord's OMS can be deployed in weeks vs months.

Sarang Damle, Director of Adoption and Growth

Partners Directly Impact Your Costs

Partner with a warehouse provider that consistently re-invests in its business for continuous improvements. Build a relationship with that provider and share your brand's growth plans so you can partner on strategic initiatives together (such as automation, regional carriers, etc.). If you are a brand that prefers to keep operations in-house, partner with a WMS technology provider that is constantly improving its software to support your own growth and business needs - one that listens and acts on your feedback and feature requests.

Josh Monski, Solutions Architect, OMS & WMS

Scale, Optimization and Visibility

Partner with an organization that allows for scalability through its physical network, parcel optimization to maximize transit time vs. cost, and one that provides a platform that unlocks true visibility with actionable insights.

Allan Simmons, Senior Account Executive

Get a logistics partner to help you sell more, save money and eliminate headaches.

3PL with both Technology and Physical Capabilities

Partner with a 3PL that has both the technology (automating workflows; real-time visibility, etc.), as well as the physical network (fulfillment + final mile) to achieve greater efficiencies. 

Brad Disher, Senior Account Executive

Accurate Inventory to Accurate Delivery Dates

Improve inventory control and hold optimized inventory levels. Promise accurate dates and showcase dates to customers, and ensure delivery to those timelines. 

Ajit Sreenivasan, Senior Product Manager, Billing

Balance Inventory with Demand

The easiest way for companies to save money and reduce spend in their supply chain and logistics operations is by optimizing inventory management. Implementing efficient inventory practices, such as demand forecasting and just-in-time inventory strategies, can help minimize holding costs, prevent overstock or stockouts, and improve overall supply chain efficiency. This approach allows companies to align their inventory levels more closely with actual demand, reducing unnecessary expenses and enhancing cost-effectiveness in the supply chain.

Tony Scharff, WMS Super User

Simplify Inventory, SKUs and Packout

Get closer to the customer with regional inventory distribution. Rationalize SKU set to reduce storage of dead or underperforming SKUs. Simplify the packout process (e.g., use generic packaging, eliminate packing slips, reduce shipped air with packaging that is too large).

Steve Swan, Chief Operating Officer

Brands can reduce supply chain costs through many different ways. These include parcel optimization, robust software solutions, smart inventory practices, SKU simplicity, and ultimately the right partner selection. 

Partners are key; focus on long-term partnerships, communicate with your partners, and ensure you are working with a partner aligned with your goals and vision. 

Still not sure how to save money? Make sure you’re partnering with leader like Stord that can provide you DTC & B2B fulfillment, transportation and integrated technology solutions that're built for scaling, high growth, multichannel brands.

If you're serious about removing costs from your supply chain, let's talk.

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