What are hidden shipping costs?

Hidden transportation costs refer to various indirect costs that do not directly appear in the freight transportation costs in logistics and supply chains, but have an impact on enterprises.

How does JERA LINE reduce these hidden transportation costs?

1. Deliver more products, not more empty air volume in your order in Jera Line. Our customers can order more products in one container, compared to others. In same container or pallet you can transport more products. Jera Line unifies the product size, carton size, and pallet, to make the importation for you more effective and cut the logistics costs.

2. Packing data estimation before order placing. We consider logistics and the delivery of product as a part of production process where you can receive our products with less costs related. So our sales team will recommend you what item to add to maximize the loading capacity.

3. Pallet of bulk cartons. Jera Line gives you recommendation per the situation related.

4. Product Management: Ensure effective product management to prevent additional transportation costs arising from product quality issues.

5. Warehouse and Documentation Staff Training: Train warehouse and documentation personnel to ensure smooth shipment processes. If the problem accrued – we will inform you.

What causes hidden shipping costs?

1. Inventory Costs: Due to logistics delays or inaccurate inventory management, businesses need to maintain higher inventory levels, resulting in increased inventory costs. This includes warehouse rent, insurance, capital holding costs, and expired or damaged inventory.

2. Production Downtime Costs: Logistics issues can lead to production line interruptions, causing production delays and order backlogs.

3. Quality Costs: Damages, losses, or delays in logistics processes may result in decreased product quality.

4. Environmental Costs: Logistics activities impact the environment, including emissions, energy consumption, and noise.

5. Customer Dissatisfaction: Logistics problems can lead to customer dissatisfaction, affecting a company’s reputation.

6. Maintaining Customer Satisfaction: Ensuring customer satisfaction requires additional resources, such as customer service and post-sales support.

JERA LINE adopts modern production cost control concepts and strengthens control of processing costs and sales costs, allowing our factories to effectively reduce hidden transportation costs and improve efficiency and competitiveness.