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Can I improve our net profit?

Can I improve our net profit?

When one evaluates business operations, we attempt to find ways to increase our company's operating income. One thing we try to do is to reduce the Cost of Goods Sold by reviewing all relative expenses.

We review the cost of the supplies necessary for the manufacturing process or the direct purchase price of our inventory. We research other suppliers or explore other contract options with our current supplier to reduce initial expenses. We identify more efficient manufacturing methods to reduce the salaries associated with our manufacturing operations.

But do we review our incoming and outgoing transport and shipping costs?

Like most of us at home or at business we tend to stay with a supplier because of a ‘comfort factor’. But once we shop around we realise our comfort factor is not the best way forward. Obtaining regular quotations for your transport and shipping not only keeps your existing supplier on their toes but throws up savings that can be made by changing suppliers. Adding another supplier for specific shipments may be a way forward.

Keeping your transport and shipping costs down can reduce the value of your inventory, the manufacturing cost of your products and their selling price. Doesn’t this mean that you can be more competitive or increase your profit margin?

There may be ways we can help improve your freight arrangements, efficiency and/or cost. So please, have the person responsible for your imports and exports complete our contact form with their phone number and we will call them to discuss possible improvements your company can make.


Please use this form to contact us, we would love to hear from you.

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