3 Ways it costs more to spend less

Nov 10, 2020

Any company that ships internationally or works in the world of transport logistics knows that costs add up quickly on projects. So, working hard to cut costs and spend less in certain areas is not only an appealing venture, but a responsible one regarding the health of the company.

Nordic Maritime Solutions believes that companies should do everything they can to save money and minimize waste in spending. However, there certain things companies do spend less and cut costs that eventually end up costing the company way more during the project.

The truth is, sometimes it ends up costing companies more to spend less.

With over 100 years of combined experience, we’ve seen these 3 major ways it can cost companies more to try and spend less.

  1. Spend less on the planning stage

Developing the proper lifting plans, securing plans, stability for transport, stowage plans, and road surveys can take a lot of time. And to do it right, it needs multiple points of verification and approval, which costs money.

For many companies, this seems like an easy place to spend less and cut some corners. But as we’ve seen over and over and again, making adjustments in the field or making corrections during transport always costs more than doing the hard and diligent work of properly planning before the project begins.

There will always be a temptation to save money in the planning stage by either not taking the time to fully vet every aspect or not bringing the right third party into the process. But this is one of the biggest ways it costs companies more to spend less.

  1. Spend less on safety measures

One of the biggest things that drive up cost during the course of transport is damage to people, equipment, or cargo. On rare occasions, damage can occur regardless of the oversight and planning. But often times, damage to worker, equipment or cargo is the result of trying to save money and work around protocols and regulations during the course of shipping.

Companies lose millions of dollars each year due to damages and accidents. Damage drives up insurance cost, often causes delays, and can result in the need to replace pieces of equipment. If injury or death occurs, not only is the company responsible for the human cost, but can incur millions of dollars in claims and damages. On top of that, the damage to a company’s reputation can result in loss of future contracts, and could potentially disqualify a company for bidding if there is a poor enough safety record.

Spending less on safety is an easy way to cost your company more money with damages and accidents.

  1. Spend less on surveyors

Not only are independent surveyors helpful with planning and overseeing the safety of transport, they are often times required by insurance companies when shipping heavy cargo. However, not all third-party surveyors are the same and often times if they are significantly cheaper than their competitors, there is a good reason for it.

Survey companies should have people all over the globe, they should be able to show that every surveyor is either a Naval Architect, Captain, or an Engineer, they should have 24/7 back office support, and they should be insistent on being a part of every stage of the project, from planning to final delivery.

In order to provide the level of oversight necessary to mitigate planning errors and on-site damages, survey companies have to cover the costs of what goes into that. If you try and just find the cheapest solution, there is a good chance the surveyor does not meet the above criteria and therefore not as well suited to help with planning and safety during the course of your transport.

Don’t spend less when it will cost you more

Doing it the right way takes more time, more personnel, and more money up front. It is understandable for a company to want to save money by spending less and cutting corners, but too often it backfires, costing more money, time, and resources.

Nordic Maritime Solutions works alongside companies and freight forwarders to ensure cargo is transported at the highest safety and operational standards, working door-to-door, from planning to delivery. To learn more about how we can truly help your company save time and money, check out our Door-to-Door Cargo Surveys and call us today.