Logistics Field Audit (tm)

   |   Search   |   
Enter the system
(for registered users)

LFA / Technology / Logistics costs
Logistics costs

Logistics costs

For most manufacturers, distributors, and retailers, logistics comprise a major proportion of total overhead costs.

The Research conducted by Herbert W. Davis and presented at the annual conference of the Council of Logistics Management in 2001 showed that logistics-related costs make up 7-16 % of a company's total revenue, or up to 45 % of total sales, general and administrative expenses.

graffic T3

The proportion of logistics expenses continues to rise as a result of growing supply chain complexity, changing client `order` profiles, and customer service requirements.

As noted in a presentation at the Council of Logistics Management conference: "The cost of logistics is usually much larger than both upper management and operations people expect. When results are presented, the first reaction is skepticism, the second reaction is wonder and review, the third reaction is concern and interest".

 The percent distribution into logistics costs components in the USA as related to sales (2002)

graffic T4
Source: Herbert W. Davis Logistics Cost and Service 2002

Our mailing

Subscribe   |    Unsubscribe

LFA News

The International conference " the Warehouse real estate of Russia " last days spring took place
Chairman of the international conference was Andrey Hlus, operating partner Logistics Field Audit, Inc.

Business News

RZD technologies are necessary to the Europe
RZD will accept active participation in realization of infrastructural projects in the Europe.

The Ulyanovsk area is measured to create transport-logistical klaster
the Ulyanovsk area for 5 years plans to realize the project " the Volga transit ", assuming creation transport-logistical klaster

Deutsche Bank and AIG will buy three logistical parks
Deutsche Bank and American International Group (AIG) can become co-owners of three logistical parks in Moscow suburbs.

The fund will borrow in hotels and warehouses
Andrey Yakunin, the son of the president of Open Society "RZD" Vladimir Yakunin, has founded fund for investments into the commercial real estate of Petersburg.

Milk without the competitor
"Vimm-Bill-Dann" has redeemed a share "Unimilk" in Obninsk milk plant