Are you able to recognise the Total Logistics Cost in your business?

You may only account for one logistics cost being transport, however Total Logistics Costs defines all costs associated with transportation, materials handling & warehousing, inventory, stock outs, order processing and return goods handling.

Each of these cost components can become a cost risk if not recognised and captured.

Every business needs to be able to define its optimum logistics cost position, which is to find the balance between each of these cost components. When considering transport and warehousing it is possible to achieve a balance between transport costs and warehouse or inventory carrying costs by having an understanding of the optimal shipment size or number of warehouses for a specific freight distribution system.

Whether you outsource or manage in house, cost is important - but should customer service be considered as a cost or a benefit?

The challenge is to find the lowest cost optimum dependent upon product type, transit time and market demand.

Modal Logistics has the tools to deliver supply chain optimisation for your business when considering all of these components. To find out how this can help your business, contact us using the form on our contact page.