Hardware Marketing Strategy: Controlling Logistics Costs

Editor's Note: Festival marketing has always been one of the effective means for the service industry to launch market brands and increase sales. For the hardware tool industry, due to the special attributes of hardware products, it is determined that companies do not follow the mid-autumn festivals and national holidays. Promotions. At the same time, the busy season for the development of the hardware tool industry does not follow the festive changes, but changes according to the market demand for various types of products. Therefore, the hardware tool industry is not completely unified and has a fixed off season and high season. After the end of another National Day holiday, all industries have taken stock of holiday promotions. We discussed the hardware tools industry's off-season and peak season marketing strategies.

Hardware companies take into account the input-output ratio of annual expenses. Therefore, they must be skillful in the peak sales season. They must ensure that the profits earned are made while sales are large, and sales and profits will be achieved. The logistics cost occupies a large proportion in the sales cost of many hardware products. Therefore, during the peak sales season, hardware companies must learn to improve logistics efficiency and reduce logistics costs. The methods include the following:

First, customers can be required to order in accordance with the economic volume, reduce the unit logistics costs;

Second, control the cost of transportation. The ideal transportation service system should be to maximize the quantity of goods to be transported under a fixed transportation distance. Combine long-distance, small-batch, multi-variety goods transportation, implement unified dispatching and distribution, and arrange certain cargo distribution centers appropriately in the middle of the transportation process according to the density distribution and time requirements of the goods, in order to concentrate and distribute the freight.捡, combination. The joint transport mode of combining small batches, close-distance transportation and large-scale and long-distance trunk line transportation is adopted. Also note that line optimization and effective stowage can effectively reduce transportation costs.

The optimization of the transportation line is also not to be underestimated and the cost control is indispensable. In the process of transportation, it should try to avoid the occurrence of convection, which is the back and forth of the same material on the same route. At the same time, we must prevent the occurrence of devious transport.

In addition, empty return should be avoided as much as possible. In long-distance transportation, return loading can greatly reduce transportation costs. If the long-distance freight transportation backhaul achieves effective stowage, the transportation distance of the unit goods will be reduced from one round trip to one trip. The distance is reduced by half and the cost is reduced to 50%.

Third, control inventory costs. Inventory cost is another relatively large source of costs in the logistics field. A reasonable inventory time and structure will save the company more than the storage costs, while reducing the capital occupation. Before the arrival of new products, we must ensure the normal supply of goods during this period. Reasonable inventory must be premised on ensuring the normal circulation of goods.

While determining the quantity of reasonable stocks, it is also necessary to consider the reasonable proportion of different commodities and their varieties and specifications in storage and the changes in the market in order to determine the correct storage structure.

The realization of the control of commodity inventory cost by distribution center mainly depends on the close-range rapid response capability of the distribution center to the purchaser and the balanced forecast of the demand of multiple purchasers.

Fourth, the use of modern information management systems to control and reduce logistics costs. Under the traditional manual management mode, the hardware company's cost control is affected by many factors, and it is often difficult and impossible to achieve optimal control of each link. The adoption of information systems by enterprises can, on the one hand, enable various logistics operations or business processes to be carried out accurately and quickly. On the other hand, through the data collection of information systems and predictive analysis, the possibility of increased logistics costs can be controlled.

V. Strengthen the sense of cost management for employees of enterprises. The cost reduction work has been expanded from the logistics management department to various departments of the company, and logistics cost management has been carried out throughout the product development, production, and sales life cycle, so that the hardware company employees have a "strategic cost awareness" for long-term development.

6. Implement supply chain management throughout the entire process of commodity circulation. The supply chain formed by metal production companies, third-party logistics companies, sales companies, and consumers will form a whole and a system to achieve the integration of logistics, so that the interests of the entire supply chain can be maximized, thereby effectively reducing the hardware company's logistics costs.

VII. Use outsourcing to reduce logistics costs

If the hardware company does not occupy an absolute advantage in logistics, the final method is to outsource logistics projects to contract with professional companies. Logistics outsourcing is to use the company's external distribution companies, transport companies, warehouses, or third-party cargo transporters to implement the logistics of the company. All or part of the management or product distribution functions. A logistics outsourcing service provider can enable a company to achieve economies of scale, more from door-to-door transportation, and save transportation costs. It also demonstrates the advantages of using these outsourced professionals and technologies.

On the other hand, because of the large scale of the total shipments in the peak season and the scale effect, it is possible to negotiate with the logistics companies and reduce the unit distribution costs, so as to achieve the purpose of saving logistics costs and increasing profits.