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Transportation charges can't be reviewed for the changes . In this case what are the other way to reduce or cut cost in opertion
1. You need to list down tasks & assign the task with timely manner which will utilize all your logistic equipment or vehicles and it will reduce the excess numbers.
2. Provide job card to operators and ask them to get approval from customers which will get exact time of working schedules. Once you have that you will avoid idle time by operators.
3. Motivate Multiskilling operators to avoid hiring each individuals against requirements.
4. Motivate Drivers with bonuses for their fuel logs against KM running, safety drive & efficient work.
To make effective cost control,Transportation plays a huge role as its directly related to our cost and should be included in logistic operations.
No, as its obvious that transportation charges are principal to logistic operation, these charges can be tightened or controlled with effective management but canot be excluded from logistic operatio for effective cost control
yes of course Transportation plays a huge role as its directly related to our cost. We should ensure that each time our vehicle go in area, it should cover all other tasks. Which can be pre planned.
reduce the time and motion
Transport cost is total cost incurred while dispating the goods, The Total transport cost mus not more that 1.5 %of total sales turnover.
Labor costs should be split into direct (hourly staff who do the work) and indirect (hourly supervisory staff or salaried management). Further, the cost of direct hourly staff should be broken down into employed staff and temporary (contract) staff.
Transportation is just part of the loggistic operation process. So, by reviewing each one part into the all process could be meked some cost control.
For efective cost control of logistic always include transportation charges for proper control the costing.
Yes this is possible by the Improvment in the packing and Value added activity
