In our last blog, we talked about how hidden costs can disguise what your logistics functions are really costing you. Today, we want to talk about how you can best minimize these costs by making your primary logistics provider part of your team.

Obviously, you need to be working with a company that knows and practices the most modern supply chain and logistics concepts and who has modern state-of-the-art technology to make it work best. It’s also a good idea to work primarily with one company that gets to know and understand your needs as well (or even better) than you do. The more they work with you, the more they understand and can help you save money and be more efficient.

Your logistics provider should be working very closely with your upper management people who are involved with these functions. You should ask your logistics provider to consult with you and share ideas that have worked well for other companies with needs similar to yours. Learn the best practices they have seen and incorporate them into your systems. They can tell you where you are doing things that make it more expensive for you and for them. Remember, when you make something more expensive for them, you will ultimately make it more expensive for your company as well.

The primary executive in charge of logistics in your company should be working closely with a primary representative of your logistics partners so they develop a close relationship. Such relationships result in better practices for all involved and, ultimately for maximize efficiency and value for the money spent.