How to Control Logistics Cost?
How to Control Logistics Cost? The cost reduction process is only possible by dividing the total cost into two main categories which are Variable cost and Fixed Cost.
Fixed Cost includes Electricity, management overheads, rent of warehouse & vehicle, inventory carrying cost, handling cost, etc.
Variable Cost includes labor pay, transportation cost, material movement cost, packaging cost, labor overtime, the maintenance cost of vehicle and warehouse, etc.
The main factor to control the logistics and warehouse is to control your overheads of variable and fixed which organizations can do for cost reduction strategy to sustain their cash flow by considering the following areas:
• Labor
• Loss of stock
• Distribution cost
• Material Packaging
• Utility cost
To work on a cost control strategy, you must have 1–3 years of month-wise data ideally to get the proper working of cost calculation.
To study further about this article please visit https://businessquora.com/how-to-control-logistics-cost/
