What is the significance of reducing logistics costs?

Reduce logistics costs and improve efficiency and income. For an enterprise, controlling the logistics cost is not only a matter for the enterprise, that is, pursuing the logistics efficiency of the enterprise, but also considering the logistics cost efficiency of the whole circulation process from product manufacturing to end users, that is, whether the logistics facilities are put into use or expanded depends on the development and requirements of the whole circulation channel.

For example, some manufacturers directly face the operation of wholesalers, so many logistics centers are in line with the logistics centers of wholesalers and engaged in the transportation of bulk commodities. However, with the rapid development of convenience stores and discount stores in the retail industry, customers require manufacturers to adapt to the new retail format and carry out logistics activities directly facing retail stores.

So in this case, the original investment may be precipitated, and at the same time, it is required to establish a new logistics center or automation equipment that meets the requirements of modern logistics development. Obviously, although these investments increase the logistics cost from the perspective of enterprises, they greatly improve the logistics performance from the perspective of the whole circulation process.

Extended data:

Ways to reduce logistics cost:

1, through the realization of supply chain management, improve the management of customer logistics services to reduce costs.

2. Reduce logistics costs with the help of modern information systems.

3. Strengthen logistics cost management from the perspective of the whole circulation process.

4. Reduce costs through effective distribution.

5. Reduce logistics costs by reducing returns.

Baidu Encyclopedia-Logistics Cost

Baidu Encyclopedia-Logistics Cost Control