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The important components of total logistics cost are transportationcost, warehousing costs, inventory carrying cost and order entry/customer service cost.
Total logistics costs consider the whole range of costs associated with logistics, which includes transport and warehousing costs, but also inventory carrying, administration and order processing costs. Administration and order processing costs are relative to the total volume being handled. However, for the same volume being handled transport and warehousing costs will vary according to the distribution strategies being adopted
logistics charges or costs are the charges occured for transportation of goods or the material either by any mode of transportation to the shipped destination from one destination to the next destination. it has many types in the scenario of logistics. but the main explanation in simple is the above as explained in simple terms.
Companies need to manage their logistics with a balance between cost and performance, since the lowest-cost transportation path is not necessarily the fastest. Logistics costs relate to the charges for various transportation methods, including train travel, trucks, air travel and ocean transport. Additional logistics costs include fuel, warehousing space, packaging, security, materials handling, tariffs and duties.
55% included inbound transportation costs, while45% did not.29% included reverse logistics/returns costs, and perhaps surprisingly , only32% of respondents included inventory carrying costs as part of total logistics costs.21% included customer service costs, which are generally included when various pundits look at total logistics costs. There was a slight vertical orientation here, with customer service more likely to be included in the consumer packaged goods, food/beverage,3PL and chemical segments, and uncommon in retail (as makes sense), wholesale distribution, and tech, to cite a few.
