In today’s economic climate, every company is looking to be “thin to win”—searching for savings anywhere they can find them, with the ultimate goal of improving the bottom line. When it comes to your logistics, however, it’s important to remember that both “hard” and “soft” dollar savings can have a significant impact on your margins.
Hard savings represent cost-cutting that directly shows up on the ledger, like negotiating lower rates with carriers. These are hugely important, but so are soft savings, which could include anything from leveraging a new tool to automate processes to utilizing managed services to increase efficiency and cut down on labor costs.
Fortunately, MCG’s unique solutions can help you save both hard and soft dollars simultaenously—here’s how.
Saving Hard Dollars
Financial executives are looking to cut costs wherever they can afford to, largely because they understand the importance of injecting extra money straight into the bottom line. In fact, few areas of your operation offer more opportunities for “hard” dollar savings than your logistics, warehouse, and supply chain, where even the most powerful companies routinely overpay for essential services.
As a prime example, consider your most recent contract negotiations with carriers: Even after that process was completed, did it seem that your rates escalated for yet another year?
It’s a common problem, and one that’s exacerbated by a lack of transparency, visibility, and market intelligence. However, there are solutions available to this frustrating problem. At MCG, for example, we provide our clients with the intelligence and data they need to take control of contract negotiations and harness rate savings of anywhere from 10 to 35% annually.
The result? Contract optimization that saves your business on hard dollars and directly boosts your bottom line.
Saving Soft Dollars
We all know the old adage that time is money. Of course, when you’re looking to make your business “thin to win,” that saying is more than a cliché—it’s an essential truth. Hard dollar savings are great—but to truly save money and unlock a competitive advantage, your business should look to combine them with soft savings, including labor and technology costs.
Fortunately, solutions like managed services allow you to accomplish both at the same time. With MCG’s managed services, we leverage our best-in-class resources, personnel, and technology to deliver full outsourcing of transportation management.
You’ll still control key relationships with customers, but we’ll manage everyday tasks, ensuring efficiency of both personnel and tools. From monitoring shipments to meeting regulatory requirements to post-shipment reporting, we’ll handle it all—and your business will save on labor costs, freight costs, and time.
Putting It All Together
Every company knows it must find ways to increase ROI and efficiency in order to survive. At MCG Logistics, we help our customers realize savings in multiple ways in order to develop into lean, successful operations.
With offerings like managed services, your company could combine hard dollar savings, including better rates with carriers, with soft savings, like time and labor costs—ultimately shifting your business into the next gear for years to come.
Looking to become “thin to win” by combining hard and soft savings with help from MCG Logistics? Don’t hesitate any longer—contact us today!