Will a low cost model, cost you more in the long term?

Pricing is one of those difficult things in business. Especially in warehousing. Its ridiculously expensive to run plant and equipment for a Cold Store. With that in mind, there isn’t many providers that offer a boutique service like we provide to our clients. We aim to save money, by having exceptional care for clients products, and communicating clearly, to ensure they save time. Obviously this means our pricing structure is slightly different to some. And over the last few weeks, with COVID-19 raging through the world, and the global economy declining, everyone is looking for savings. But will savings in raw cost of products actually cost you more in the long run. There is a saying that cheap now, is expensive later holds true to me on so many levels. And most would agree. The difficulty is when clients are simply struggling to get through the now, they are not worried about the long term.

So where does that leave a Cold Storage and Logistics company that is focussed on service, and through that exceptional service, the client gains savings, whether its through reduced oversight requirements on their logistics or a reduction in shrinkage. Often these areas provide long term savings, and are often sunk costs already. So in a time when people are caring all about the “all mighty dollar” where do we fit in?

One of our multinational clients expressed it well this week. They fulfil FMCG across the country to fast food outlets. And their model is JIT (Just in time) however delays across wharfs meant that they would miss their supply deadline, which would incur significant fees. APF Cold Storage and Logistics was able to synchronise all parties involved to unload and dispatch to the supplier within hours of availability at the dock.

This is because to us, every client here is important. If we can do something, we always will. We strive to make it work for our clients, and we will never say never to any suggestion.

I stand by our service as the best in Adelaide, if not Australia, and eagerly watch about how the every industry will adapt to the downwards pressure on pricing, and how that will affects everyones service.


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