STRATEGIES FOR REDUCING SUPPLY CHAIN AND LOGISTICS COST
| Kuala Lumpur
Supply chain costs often represent a considerable percentage of the sales price of a good or service. Cost savings flow directly to the bottom line. Every company is likely to have a different understanding of what qualifies as a logistics cost. For most intentions and purposes, however, logistics costs include the expenses that are incurred when moving products from sourcing to final delivery. The need to carry out a successful business always requires minimising expenses involving supply chain and logistics. While minimising expenses it is equally important to ensure that the quality of service doesn’t diminish. Cost reduction is a challenging subject in logistics and supply chain. Too often we’ve seen companies try to cut headcount in order to achieve quick cost reduction. This is often completely the wrong strategy. Cost reduction starts with fully understanding all cost - separating them into variable and fixed cost. To reduce the costs of logistics and supply chain it is vital to optimise efficiency in operations.