Door-to-Door Service: Efficient and Reliable Way to Transport Your Cargo

Transportation is an essential component of the supply chain, and every industry participant strives to receive the most modern transport services at reduced prices. Transport logistics costs are skyrocketing these days for a variety of reasons. Inadequate planning, lack of transparency, and poor decision-making can lead to higher prices, missed deliveries, unhappy customers, and loss of business.

Listed below are 6 proper ways to decrease your logistics costs.

1. Consolidation of supplies

The company's delivery rates are determined depending on weight, distance, and other factors. Consolidation of shipments is one of the strategies suppliers use to make fewer trips and profit from lower rates on bulk orders.

2. Decentralized warehouse services

Another way to reduce transport costs is to use multiple decentralized warehouses. Having goods in decentralized warehouses ensures that they are already in proximity to the customer, allowing greater flexibility and shorter delivery times. Professional inventory management and communication are essential to plan optimal transport routes and save costs by knowing exactly how much and what types of goods are in stock.

3. Automatic container loading system

When handling bulky and heavy goods, loading and unloading containers is a critical part of the workflow. Using an automatic container loading system is a great way to reduce transport and labor costs, avoid product damage, and increase productivity by being able to load or unload all goods at once.

4. Use of technology

The COVID-19 pandemic has shown unequivocally that documenting processes on paper is no longer relevant. There are enterprises for which the digitalization of processes may seem like a significant change in material terms. However, in this case, the benefits outweigh the costs. Digital records give logistics managers a better understanding of the entire supply chain. Computerized record-keeping allows companies to find and correct shortcomings that are costing them money.

5. Reduce the size of your vehicle fleet

Finding effective solutions for fleet cost management can be quite a challenge. It is possible to cover more territory in less time by effectively distributing orders between available vehicles. When fewer trips are required to accommodate more deliveries, it is possible to decommission vehicle assets, further reducing costs.

6. Regular vehicle maintenance

Preventive maintenance can help you avoid breakdowns and keep your vehicle in top condition. With the right regular vehicle maintenance program, you can keep track of how far you've driven, how many times you've stopped, and how much fuel you've used. Good service helps keep vehicles running, resulting in lower fuel consumption and energy wastage, reducing transport costs.

Taking into account the results of the case and guided by Articles 3 and 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities” and the “Rules for the consideration of cases of violation of antimonopoly legislation,” approved by Resolution of the Cabinet of Ministers No. 10.120 dated May 29, 1998, the Commission

DECIDED:

1. In connection with the monopolization of the industry by Azerbaijan Railways CJSC and the unreasonable restriction of the independence of business entities (limitation of competition by refusal to agree on the “mesplans” of Alliance Logistics LLC in November 2023), which violates paragraph 4 of Article 6 of the Law of the Republic of Azerbaijan “On Antimonopoly Activities,” illegally acquired income in the amount of XXXXX is subject to payment to the state budget in accordance with paragraph 2 of part 1 of Article 17 of the same law.

2. The creation by Azerbaijan Railways CJSC of conditions for dumping in relation to its subordinate economic entities in order to limit or eliminate competition by establishing an industry monopoly (limitation of competition in the transportation of uranium concentrate by ADY Container LLC in November-December 2023) is a violation of the requirements of paragraph 11 of Article 6 of the Law of the Azerbaijan Republic “On Antimonopoly Activities,” as a result of which, in accordance with paragraph 2 of part 1 of Article 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities,” XXXXXX income must be paid to the state budget as illegally obtained profit.

3. Creation by Azerbaijan Railways CJSC of conditions for dumping in relation to its subordinate economic entities to limit or eliminate competition by establishing an industry monopoly (order No. 5-10275/2023 dated May 19, 2023, related to the provision of special benefits to LLC "ADY Konteyner" and led to a restriction of competition concerning prices for services provided at the Hovsan station) contradicts the requirements of paragraph 6 of Article 11 of the Law of the Azerbaijan Republic "On Antimonopoly Activities". Income received in violation of this law is subject to payment to the state budget as illegally obtained profit in accordance with paragraph 2 of part 1 of Article 17 of the Law of the Azerbaijan Republic “On Antimonopoly Activities.”

Based on the results of the consideration of the case against Azerbaijan Railways CJSC, to eliminate violations of paragraphs 4 and 11 of Article 6 of the Law of the Republic of Azerbaijan “On Antimonopoly Activities,” the following instructions were issued:

- Payment of illegally obtained profits to the state budget, termination of refusals for subjective reasons when approving “mesplans” with orders from forwarders working in this area, with a clear indication of the reasons for refusal to approve “mesplans”;

- Payment of illegally obtained profits to the state budget, provision of benefits not to entities but to transported goods, and ensuring that benefits apply to all business entities while observing the principles of competition between freight forwarders operating in this area, as well as timely notification of all freight forwarders;

- Payment of illegally obtained profits in the amount of XXXXXX to the state budget, ensuring the formation of equal, transparent, and fair conditions for competition between forwarders operating in this area, as well as preventing bias in relations between the subsidiaries of Azerbaijan Railways CJSC and private forwarders.

On June 24, 2024, the State Service for Antimonopoly Control and Supervision over the Consumer Market imposed a financial sanction in the amount of 246,241 manats on Azerbaijan Railways CJSC for violating the Law of the Republic of Azerbaijan “On Antimonopoly Activities.” To eliminate instances of industry monopoly in the relevant market, a number of mandatory instructions were issued.

* As you can see, there is no court decision that would refute or exclude the above, and the indicated violations are not similar to previously adopted decisions. For these reasons, all measures provided for by law are taken in relation to Azerbaijan Railways CJSC to ensure the economic and legal interests of business entities. Instead of evading responsibility, ADY CJSC is recommended to bring its activities into compliance with legal requirements.

Transporting goods across borders involves global competition and multiple levels of requirements. Optimal solutions, staying up to date with strategies and rules, and using the latest technology are essential for international market success.

According to analysts and experts in this field, the most important points are the following:

Requirements and procedures in this area are constantly changing, and it is necessary to know about changes in international norms and rules firsthand in order to avoid delays in both production and sale of goods. Regular review of these rules will reduce their impact on exports to zero.

Don't forget that all documents must be in order, always! Echoing the previous principle, the paperwork required for global delivery can become an obstacle if you do not have up-to-date knowledge of international legal norms. Incorrect or incomplete documents tend to delay shipment and implementation, creating the risk of cancellation and damage to the company's reputation.

Using free trade zones while adhering to the standards and guidelines of international trade agreements, both in the production and distribution of goods, helps to achieve a regional advantage for your business.

In the international trade system, innovative technologies open up new opportunities, and this is an indisputable fact. Through the use of technology, some costs are reduced, which, in turn, stimulates the growth of commercial activity. Here we are talking about transport costs, logistics costs, costs for port services and customs clearance, for obtaining the necessary information, and transaction costs. A striking example is artificial intelligence and self-driving cars, which help reduce transportation costs.

Of course, the important point is not so much the choice of the market for offering products, as the adaptation to it. You will need to analyze it, make sure it fits your business, determine how easy it is to reach it and determine whether it is worth it.

International trade is a complex activity, so it is important for exporting companies to keep these best practices in mind as well as take advantage of reduced logistics costs to increase market share and succeed in new ones.