Cost Cutting – Part 2: Ways to Achieve Greater Productivity and Cut Costs

Companies must focus on three essential questions when thinking about productivity and cost savings.  “How can we get more out of our existing employees?”  “How do we come up with a strategy that involves hiring lower cost, high-quality labor?” and, “How can we apply technology to minimize the need for labor?”  

Improving Efficiency is not necessarily the same as reducing costs. Sometimes you have to invest in your business to make it more efficient.  

Joel McGinley, Hubtek/TranStrategy Partners Managing Director

Hubtek approaches this issue using our four-step proprietary model.  The first step is the completion of a company assessment.  Next is helping you see and define clear objectives.  Then, working with you to develop an action plan with associated expectations.  Finally, helping you incorporate accountability and appreciation programs that assist people in “doing it”.  This model is effective in guiding companies to their goal of cost savings. 

For over 17 years we have been helping businesses in the Logistics Industry lower costs and increase productivity.  What we have found is that if employees are trained and coached property, this can lead to 30% more productivity on the part of the current staff.  But it’s not only training and coaching that are important aspects of achieving this goal.  Companies also need to have access to high-quality labor at a lower cost.  That’s why our labor strategy includes co-managed employees who operate out of our nearshore operating center based in Medellin, Colombia.  The structure of South American economies allows us to provide high-quality, educated labor at a fraction of the cost.  Hubtek uses Latin American resources who are bilingual and college-educated, and you can outsource with a nearshore model that Hubtek helps you to develop. 

Another critical part of increasing productivity is the use of technology.  Efficiency through technology enables employees to do more work without having to add labor.  With the right technology, companies can expand while maintaining their current labor force.  Logistics companies must invest in, and have a partner in, technology that understands their business processes.  Our technology strategy centers around automation by first identifying processes to optimize. For example, some of the labor processes that can be automated are carrier sourcing, TMS order entry, and freight quoting.  All these processes are time-consuming and repetitive tasks, and if you can free up your current labor force to do more revenue-producing activities, they become much more productive in the areas that count the most.  All logistics companies should be working towards employing automation in these areas. 

Hubtek is a Labor and Workforce Automation company that can help you lower costs by first taking your existing team and helping them become more productive through our strategy, training, and coaching programs, utilizing our proprietary program to help get to the core of your inefficiencies and quickly correct them.  We can also optimize your current processes and show you how we can apply technology to minimize the need for more labor.  The real savings comes by using the technology of our Tabi automation program, which genuinely delivers total efficiency, speed, and excellence.  And if additional employees are needed, we have a staffing program that provides you with co-managed Talent who are fully invested in the performance and productivity of your business.   

We invite you to watch our LIVE Webinar “Grow Your 3PL Business in 4 Steps”.

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Grow Your 3PL Business in 4 Steps

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