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Net landed cost of goods, the total cost associated with getting goods into customers' hands, consists of cost of distribution (CoD) and cost of manufacturing (CoM). For years, manufacturers and brands have worked to reduce CoM as the means to reducing their net landed cost of goods to compete and succeed in increasingly competitive marketplaces; as this strategy reaches its limits, companies increasingly turn to the often more rewarding yet complex opportunity to reduce CoD.
When a company's CoD represents a significant portion of its net landed cost of goods, opportunity abounds to reduce overall costs and increase margins. Some of the world’s top brands are putting cloud-based automation technologies in place in a matter of days to quickly boost shipping efficiencies. These companies are rapidly achieving as much as 30 percent reductions in net landed cost of goods without renegotiating rates by relying on algorithms that optimize inventory allocation and distribution planning.
Eyefreight, a provider of SaaS TMS technology, has helped numerous brands across the globe optimize their distribution processes. The case studies included in this white paper show Eyefreight's flexibility to adapt to the unique needs of shippers with complex distribution scenarios to reduce their net landed cost of goods and positively impact the bottom line, to the tune of double digit reductions in transport costs, increased perfect customer orders, radical decreases in planning teams' workloads, and significant reductions in CoD, including reductions in transportation costs, distanced traveled and carbon footprint.
Please CLICK HERE to view this whitepaper.
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