Logistics Cost Reduction Strategies Training Course

Participants can calculate cost-to-serve by customer, channel, product and delivery profile.

• Cost-to-serve analysis by customer, channel, order profile and geography
• Activity-based costing for picking, packing, loading and delivery activities
• Allocate transport costs using weight, volume, distance and drop factors
• Identify loss-making service patterns hidden within average cost reports
• Customer profitability bridges linking revenue, discounts, service and logistics costs
• Use contribution analysis to assess delivery policy exceptions

Participants can prepare logistics spend data for reliable cost analysis and savings decisions.

• Clean freight invoice data using supplier, lane and shipment fields
• Classify spend by mode, carrier, customer, site and charge type
• Pareto analysis of high-value lanes, suppliers and accessorial charges
• Reconcile invoice totals against transport management system shipment records
• Detect duplicate charges, minimum charges and unexplained rate movements
• Build a savings opportunity register from validated spend findings

Participants can diagnose the principal operational causes of transport cost variation.

• Freight cost components including linehaul, fuel, accessorials and detention
• Analyse cost per kilometre, tonne, pallet, stop and shipment
• Vehicle utilisation measures for weight, cube, time and kilometres
• Empty running analysis using backhaul availability and network imbalance
• Delivery density effects on route cost and driver productivity
• Minimum order quantities linked to delivery cost economics

Participants can identify route, schedule and load-consolidation actions that reduce transport cost.

• Route optimisation constraints covering delivery windows, capacity and driver hours
• Consolidate orders using cut-off times and dispatch frequency rules
• Build milk-run routes for predictable multi-stop collection or delivery
• Assess direct shipment versus hub-and-spoke distribution cost trade-offs
• Load planning methods for pallet, carton, weight and cube utilisation
• Sequence delivery stops using distance, service priority and unloading time

Participants can source transport services using clear specifications, should-cost logic and scorecards.

• Transport tender packs defining lanes, volumes, service and equipment requirements
• Should-cost models using distance, fuel, labour, equipment and overheads
• Compare carrier bids beyond headline rates and fuel surcharges
• Rate-card governance for minimums, accessorials, escalation and exceptions
• Carrier scorecards combining cost, service, claims and capacity indicators
• Negotiation preparation using BATNA, target rates and concession limits

Participants can assess fleet operating costs and select practical improvement actions.

• Fleet cost model covering ownership, leasing, fuel, maintenance and drivers
• Total cost of ownership for vehicle acquisition and replacement decisions
• Fuel efficiency analysis using consumption, idling, route and driving data
• Preventive maintenance planning to reduce breakdowns and repair costs
• Right-size vehicle classes against route, load and access constraints
• Make-or-buy analysis for private fleet and contracted transport options

Participants can establish a warehouse cost baseline linked to workload and service outputs.

• Warehouse cost structure covering labour, space, equipment and consumables
• Define workload measures for receipts, lines, units, pallets and orders
• Calculate cost per order, line, unit and pallet handled
• Separate productive, indirect, waiting and rework labour time
• Labour standards for receiving, put-away, picking, packing and loading
• Baseline overtime, temporary labour and absenteeism cost patterns

Participants can identify warehouse productivity losses and select improvement methods.

• Process mapping from inbound receipt through dispatch confirmation
• Time-and-motion study methods for repetitive warehouse activities
• Slotting analysis using velocity, cube, handling and replenishment frequency
• Reduce travel time through pick-path and location design
• Visual management for workload, queue, accuracy and equipment status
• Standard work instructions for high-volume warehouse processes

Participants can reduce storage and material-handling costs without compromising flow or safety.

• Storage utilisation measured by pallet positions, cube and occupancy
• Calculate space cost by zone, product family and storage medium
• Racking, shelving and floor-stack options compared through handling economics
• Material-handling equipment utilisation, availability and maintenance cost measures
• Cross-docking criteria based on flow, demand and handling avoidance
• Safety stock placement effects on space, travel and replenishment cost

Participants can balance inventory holding cost, availability and replenishment decisions.

• Inventory carrying cost including capital, storage, obsolescence and insurance
• ABC analysis linking control effort to annual consumption value
• XYZ demand classification using variability and forecastability measures
• Economic order quantity assumptions, limits and operating applications
• Safety stock calculations based on demand variability and lead time
• Slow-moving stock review using ageing, disposition and replenishment controls

Participants can evaluate service commitments against their logistics cost consequences.

• Order cut-off policies and their effect on transport consolidation
• Delivery frequency analysis by customer demand and route economics
• Minimum order value rules supported by cost-to-serve evidence
• Premium freight approval controls for urgent customer requirements
• Service segmentation using customer value, urgency and delivery complexity
• Returns policies assessed for transport, handling and disposal cost

Participants can compare logistics network options using cost, service and risk criteria.

• Network cost components for facilities, transport, inventory and administration
• Centre-of-gravity method for preliminary distribution centre location analysis
• Compare centralised and regional stocking using service-cost scenarios
• Facility sizing based on throughput, storage profile and peak demand
• Outsource warehouse operations using volume, control and capability criteria
• Network sensitivity analysis for fuel, demand, lead time and capacity

Participants can assess packaging decisions through total logistics cost and damage prevention.

• Packaging cost analysis including materials, labour, cube and damage
• Right-size packaging to improve vehicle fill and storage density
• Returnable transit packaging evaluated through cycle time and loss rates
• Damage-cost analysis covering claims, rework, replacement and customer impact
• Unit-load design using pallet patterns, stability and handling requirements
• Packaging specifications aligned with carrier handling and warehouse processes

Participants can assess technology investments using quantified operational and financial assumptions.

• Warehouse management system benefits linked to accuracy and labour savings
• Transport management system value from planning, tendering and audit controls
• Barcode scanning cases measured through error reduction and throughput
• Automation business cases using volume, labour, maintenance and utilisation assumptions
• Build versus buy decisions for logistics software and support services
• Technology benefit tracking after implementation against approved business case

Participants can reduce logistics losses through structured analysis and preventive controls.

• Claims analysis by carrier, cause, product and shipment type
• Root cause analysis using five whys and fishbone diagrams
• Damage prevention controls at packing, loading and handover points
• Proof-of-delivery processes for dispute prevention and invoice validation
• Shrinkage controls across receiving, storage, picking and dispatch activities
• Corrective action registers with owners, due dates and verification evidence

Participants can build a prioritised pipeline of credible logistics cost-reduction initiatives.

• Generate savings ideas from cost drivers and process observations
• Quantify savings using baseline, change assumption and benefit formula
• Distinguish hard savings, cost avoidance, productivity and working-capital benefits
• Prioritise initiatives using impact-effort matrices and dependency mapping
• Risk assessment covering service, safety, supplier and implementation effects
• Assign initiative owners, sponsors, milestones and decision gates

Participants can govern cost-reduction initiatives and validate realised financial benefits.

• Savings tracking rules defining baseline, timing, ownership and evidence
• Finance validation for realised savings and avoided future costs
• Control charts for monitoring cost, service and productivity performance
• Monthly review packs covering actions, benefits, risks and decisions
• Change control procedures for scope, assumptions and target revisions
• Escalation criteria for initiatives missing savings or service targets

Participants can secure operational and commercial support for logistics savings initiatives.

• Stakeholder mapping for operations, procurement, finance, sales and suppliers
• Communicate service-cost trade-offs using concise decision-ready evidence
• Supplier improvement meetings structured around scorecards and corrective actions
• Objection handling for delivery policy, frequency and minimum-order changes
• RACI matrices assigning accountability for savings implementation activities
• Change communication plans for affected warehouse and transport teams

Participants can build, review and present a complete logistics cost-reduction business case with quantified initiatives, implementation controls and performance measures.

• Consolidate baseline costs, service measures and opportunity analysis findings
• Select initiatives using value, feasibility, risk and dependency criteria
• Prepare quantified savings calculations with stated assumptions and evidence
• Develop implementation roadmap with owners, milestones and governance reviews
• Define KPI dashboard for cost, service, productivity and benefit realisation
• Present business case recommendations and respond to stakeholder challenge