In 2018 apparel sales increased 14.7% to over $103 billion. It was largest single e-commerce product category, making up 19.7% of total retail e-commerce sales. And although revenue across apparel categories is only expected to rise in the future, consumer demand and increased competition is making it more challenging to increase profit margins.
The main reason for these new obstacles is the explosion of e-commerce platforms. A major element of the supply chain that can address budget strains and streamline costs is transportation. Here are three tips for managing truckload transportation costs.
Consider All Transportation Variables
Everything that comes through the distribution center and the way things are handled impact your transportation costs. Customer requirements and the actual transit logistics need to be negotiated to create a streamlined transportation operation. Optimizing these variables, at least the controllable ones, will go a long way in trimming costs and expanding your existing resources.
Identify and Isolate Transportation Costs
As fulfillment processes become more complex, the actual cost of transportation can be difficult to identify. Shippers are often forced to revisit contract terms and look for cost-effective solutions. Looking across all of your transportation partners and options and how they fit with your overall strategy can reveal different advantages that can positively impact your business.
Technology is making things faster and easier than ever before. For transportation this comes in the form of the TMS, or transportation management system. Cloud technology is making TMS software more advanced and affordable. Updates and maintenance are no longer a burden, while visibility across the entire transportation operation is better than ever.
These are only a few areas where apparel truckload transportation can be enhanced, it is important to realize that the opportunity is there to make improvements. As consumers continue to have more options and the ability to make orders from anywhere to anywhere, supply chains will face new challenges. To meet these challenges, Barrett Distribution Centers creates customized supply chain and transportation strategies to meet the needs of apparel manufacturers.