How to Save Cost for Lorry Companies in Malaysia
In 2019, quite a number of LTL, truckload, and lorry rental service in Malaysia were forced to go out of business due to the capacity crunch and the increasing need for carriers to reinvent themselves and focus on new ideas by which they can remain competitive. Industry experts have predicted that the start of a new decade will continue much in the same vein as the last one ended ─ which saw a steady increase in the rates of LTL carriers.
This has been pinned down majorly to the stability of the economy. As a result, most logistics companies in Malaysia will no longer be able to rely on price cuts and discounts to get business or remain competitive in the delivery truck hire industry. In other words, it has become imperative that the logistics company in Malaysia discover new and improved methods to stay competitive in the Malaysian carrier market.
Below we highlight some crucial areas where LTL freight shipping companies in Malaysia can focus on to be competitive in the market, reduce costs to the barest minimum, and become more efficient in their service delivery.
The use of Just–in–Time inventory management
The just–in–time inventory system is an efficient management system that places or links raw material orders from the supplier directly with a company's production schedule. Many organizations use this inventory method to boost efficiency and minimize waste by receiving goods in batches – that is, only as they need them for the process of production, thereby reducing inventory cost.
JIT has become a way for many lorry delivery service in Malaysia to remain competitive in today's market as it helps to lower inventory holding cost, improves cash flow, and also prevents the occurrence of dead stock.
More efficient routes
It has become essential that the logistics company find more efficient routes to aid fast and more comfortable delivery of materials to clients, as this builds the trust and reliability of customers on their business. With the use of JIT, companies are now warehousing their products closer to the points where they have their customers. This has dramatically affected the travelling distance of goods before they reach their final destination.
Additionally, shorter distance means that shipments can stay with the same carrier, thereby reducing the risk of transferring cargo at hubs.
Increase in delivery reliability
For JIT to be efficient, shipping companies need to make sure that there is no disruption in the supply chain. In the past, many shippers were apprehensive about making use of LTL shipments because they were somewhat unpredictable most of the time, it is not clear how many stops they would be making before your delivery is finally made.
Today, the situation is different as the best truck rental Malaysia has to offer, make use of technologies that allow them to share real─time updates with their clients, and so, clients can now predict when their goods would be reaching them. Transparency is the keyword here!
Improved affordability
LTL is the most economical shipping method that is available to customers, that is after rail. What places LTL above rail in Malaysia is the fact that some lorry rental with driver service allows clients to be able to receive goods at their doorstep, which is a feature that is not available when you make use of rail transport. For greater competitiveness, truck delivery service in Malaysia can focus on providing cheaper door─to─door services that allow clients to receive their orders in the comfort of their homes.
Increased demand for accessory services
Focusing on providing added accessory services such as liftgates, inside pickup/delivery, and notification option will make lorry delivery service more attractive for clients across Malaysia.
Takeaways
Today, most of the delivery truck rental companies are beginning to focus on transparency and innovative technology to boost their market base. By creating their transportation management system and integrating technology that allows lorry transport companies in Malaysia to provide real─time business intelligence and updates to its clients, more LTL shippers will be able to stay competitive going into the new decade. After all, the most transparency is the demand of most shippers in Malaysia today.