How to maximize profit?
What is profit maximization? One way to determine how to generate lager profit is to minimize operating costs.
Besides savings on logistics management and international trade operations, our company will provide a comprehensive assessment of expenses on logistics and foreign economic activities.
It often happens that in the same organization, the tasks and targets of various departments contradict each other. Such operational “dis-synergies” cost a lot of money to an organization resulting in loss of revenue – the expense that could have been avoided.
Example from Experience:
A major company has a network of hotels and department stores.
It organizes its own construction of buildings, material handling, renovations, exterior and interior designs of new stores.
Company’s business processes are structured and set for a long term business plan.
The company handles large volumes of orders. The deliveries of supplies, materials and accessories mostly come from abroad.
Ordering is implemented by each department specific to its business tasks, targets, and deadlines.
The task of logistics department is to deliver the necessary shipment by a certain date with no cost consideration.
Everything is always urgent!
Ordering Departments are not concerned with the Logistics Department shipping expenses of goods.
Since the company manages such material handling and delivery practices for a long time, nobody is surprised about the excessive spendings as they become a customary business expense.
As a result of analysis conducted by Sekom Logistics, our Client was presented with a range of possible solutions to reduce material handling, shipping and delivery costs.
Sekom Logistics recommended an order distribution scheme with consolidation of goods at European and US warehouses – either to assemble the shipments to the full-load capacity such as trailers or containers, or to combine several different shipments in one delivery and to extend the delivery time deadline.
The necessity of a combined complex planning and integration of synergies, and consolidation of operations among various departments that would lead to cost savings was discussed with Company Management.