Five places Thai businesses quietly lose logistics cost

When cost reduction comes up, most organisations look at freight rates first. That is not wrong, but it is rarely the fastest return. In our experience the leaks hide in five places.

First, fill rate. Many companies pay for a full truck and use sixty percent of the space. Re-cutting delivery rounds and consolidating orders often removes trips immediately.

Second, travel distance inside the warehouse. When stock is placed without regard to pick frequency, staff walk further than necessary every single day. Zoning by velocity cuts pick time significantly.

Third, duplicated paperwork. The same data gets rekeyed into several systems. Beyond the lost time, it is a reliable source of error.

Fourth, non-moving inventory. Storage space costs money, and stock that does not turn is capital sitting still.

Fifth, undocumented workarounds. Without a standard, the method differs by shift and by person, and the output becomes unpredictable.

The best place to start is a clear baseline measurement, because what cannot be measured cannot be improved.