Whitepaper Excerpt: Lower Your Fixed Costs
The following is an excerpt from the CoLoadX Whitepaper, “Logistics as a Service: How it Will Transform Your Ocean Freight Business”. Download your free copy here to learn more about how LaaS can help your ocean freight business grow.
Freight forwarding revenue comes from buying and selling cargo in the form of ocean containers, air & truck capacity. Too often, we believe that we need to hire more people to gain market share and to service the transactions.
But in many cases, digital business eliminates the need to hire more people or open more offices. With technology, you can win and serve more business on the same overhead cost: That’s called “economy of scale”.
Let’s Get Specific
Freight forwarders who sell to large retailers often send daily tracking reports on incoming cargo. They might have an employee making $35k/year dedicated to this role. His or her function could easily be automated and enhanced with online reporting. Now imagine if that high-skilled person could be redeployed to a more valuable role, further helping your business.
The jargon for this phenomenon is lowering Fixed Cost per Container/Cubic Meter/Kilogram Sold. But in plain English, it’s just shorthand for lower fixed costs and higher profits. Remember, every dollar saved goes straight to your bottom line.
Read how LaaS can lower your fixed costs, reduce procurement expenses, keep your partners and vendors honest, and equip your company with the data it needs (plus much more) in your free copy of the CoLoadX whitepaper.
By: CoLoadX on July 27, 2017, 12:05 p.m.