Warning: U.S. shoe industry logistics costs account for 41% of total debt

U.S. shoe giant Shoes for Crews filed for bankruptcy protection on April 1, drawing attention to logistics cost management. According to the creditor list, the company's freight and logistics expenses accounted for 41% of the total debt, amounting to nearly $10 million. This high proportion of logistics debt highlights the importance of logistics chains in the current business environment.

Reasons why US shoe giant Shoes for Crews went bankrupt

Macro trend changes

The capital structure is less leveraged and competition with larger online retailers is increasing.

Impact of the epidemic

The epidemic has changed the consumption behavior of consumers and businesses, causing serious impact on the catering and other industries.

inflationary pressure

Goods and labor costs rise.

What are the strategies and methods to reduce logistics expenses?

Optimize supply chain management

By integrating the supply chain, logistics integration is achieved to maximize the benefits of the entire supply chain and optimize logistics resources, thereby effectively reducing logistics costs.

Improve logistics efficiency

Reduce the number of transportation times, shorten the supply chain time, and reduce logistics losses. Improve the loading rate and rationally arrange the vehicle distribution plan, and choose the best transportation method.

Optimize transportation strategy

Properly plan transportation routes to avoid unnecessary detours and congested road sections, and reduce transportation time and costs. Choose a cost-effective transportation method, such as choosing the best solution among road, rail, waterway or air transportation based on the nature, quantity, transportation distance and other factors of the goods.

At the same time, you can also consider using multimodal transportation to combine the advantages of different transportation methods to maximize transportation efficiency.

Logistics outsourcing

Cooperating with professional third-party logistics companies and outsourcing logistics services can reduce investment costs, shorten the time of goods in transit, and reduce costs and losses in the commodity turnover process.

Optimize packaging

Choose appropriate packaging materials to reduce packaging costs. Optimize packaging design, reduce packaging space occupation, and reduce transportation costs.

Utilize modern information systems

The use of information systems can enable various logistics operations or business processes to be carried out accurately and quickly, conduct predictive analysis through data aggregation, and control the possibility of logistics costs.

Improve loading efficiency

Use advanced loading technology, such as containers, pallets, etc., to improve the loading rate and space utilization of goods. Reasonably arrange the stacking and arrangement of goods to reduce damage and loss of goods.

Choose the right logistics service provider

Evaluate the service quality, price and efficiency of different logistics service providers and choose the logistics service provider that best suits your company. Establish long-term cooperative relationships with logistics service providers to achieve win-win results.

Implement green logistics

Use environmentally friendly packaging materials and transportation methods to reduce the impact of logistics activities on the environment. Reduce logistics costs through resource recovery and recycling.

Improve employees’ awareness of cost management

Carry out logistics cost management from the entire life cycle of product development, production and sales, and cultivate employees' cost awareness for long-term development.

Negotiate shipping costs

Negotiate competitive rates with carriers and freight forwarders, especially for high-volume shipments. Consider a long-term contract or partnership with your preferred carrier to secure lower rates.

It is crucial to choose a professional, efficient and cost-optimized logistics service provider. Based on such demand, we strongly recommend Chindivision logistics service provider to enterprises and merchants.

Chindivision logistics service provider stands out in the industry for its excellent service quality and efficient logistics solutions. Committed to providing a series of innovative logistics solutions to help enterprises achieve effective control of logistics costs.

Chindivision has strong transportation capabilities, an extensive transportation network, and can flexibly respond to various logistics needs.

Utilize advanced logistics technology and information systems to monitor the transportation status of goods in real time and provide accurate logistics information. Through refined management and data analysis, bottlenecks and problems in the logistics process can be discovered, and adjustments and optimizations can be made in a timely manner, thereby improving logistics efficiency and reducing logistics costs.

Chindivision focuses on customer experience and has a professional customer service team that can respond to customer needs in a timely manner and provide personalized logistics solutions. Whether it is order processing, cargo tracking or after-sales service, they can provide timely and professional support to ensure customer satisfaction.

If you are looking for a reliable logistics service provider, you may wish to consider Chindivision, I believe they can provide satisfactory solutions to your logistics needs.