Buried treasure- Hidden Logistics Cost
- Topics:
- Analysis
- Tags:
- Business Operations,
- Logistics,
- Supply Chain
- Source:
- frontlinetoday.com
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Overview: A very imporatnt question which arises is that can already reduced logistics budgets be cut even further-by 5% or more-without adversely affecting customer services or productivity? A lot depends on a company's willingness to take the time to find the hidden costs in its logistics network and to understand what constitutes its total cost of logistics. Logistics [costs] become hidden because companies quit looking at them. It is very common for companies to set up processes and add new procedures over the years, but fail to review them to make sure they [are] cost effective." One of the first things companies can do is do a better job of understanding their total logistics spend, because that is going to give them a better scope of problems or opportunities.Sometimes hidden costs stem from data that isn't as good or consistent as it needs to be. Centralizing the data, allowes to uncover opportunities to reduce cost through continuous moves, load consolidation and back hauling freight.
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Format: HTML | Date: Aug 2003 | Pages: 1
