Reducing logistics costs while maintaining service levels requires logistics leaders to take a careful look within their organizations, according to data from global research and advisory firm Gartner Inc. released this week and due for further analysis at the group's Supply Chain Planning Summit next month.
Gartner's report, "5 Actions to Optimize Logistics Costs from Within the Organization," explains why logistics professionals should place less emphasis on negotiations with outside carriers and providers and instead examine internal practices that can help optimize their companies' logistics costs.
"Logistics costs are on the rise in many regions—the result of tariffs, rapid e-commerce growth, and a tight labor market," Farrah Salim, senior principal analyst with the Gartner Supply Chain Practice, said in a statement. "When logistics leaders are asked to reduce costs, they usually aim to negotiate better prices with their carriers and logistics providers. Those negotiations can be difficult, and success is not guaranteed. What is often overlooked is that there are plenty of actions logistics leaders can take to optimize costs from within their organization."
Gartner's five actions for optimizing logistics costs are:
Stamford, Conn.-based Gartner will host its Supply Chain Planning Summit November 4-5 in Denver.