What do you think are the impact of logistics costs on business operations?

Updated on Financial 2024-08-09
7 answers
  1. Anonymous users2024-02-15

    There are many factors influencing logistics costs and business operations. For example, the driver's salary. Oil prices. Shipping distance.

  2. Anonymous users2024-02-14

    Anonymous usersFactors influencing logistics costs:

    1.Competitive factors. The market environment in which the enterprise is located is full of competition, the competition between enterprises in addition to the product, performance, quality, in a sense, high-quality customer service is the key to the success or failure of the competition, the customer's service level directly determines the level of logistics costs, so the logistics cost is to a large extent due to the increasingly fierce competition and constantly changing, there are the following influencing factors.

    1) Order cycle. The high efficiency of the enterprise logistics system will inevitably shorten the order cycle of the enterprise, reduce the customer's inventory, thereby reducing the customer's inventory cost, improving the customer service level of the enterprise, and improving the competitiveness of the enterprise.

    2) Inventory levels. The cost of inventory increases, and the cost of stockouts can be reduced, that is, the cost of stockouts is inversely proportional to the cost of inventory. Inventory levels that are too low will lead to increased stock-out costs; However, if the inventory level is too high, although it will reduce the cost of stockouts, the inventory cost will increase significantly.

    Therefore, a reasonable inventory should be maintained at a level that minimizes the total cost.

    3) Transportation. Different means of transport have different transportation capacities and different costs. The choice of means of transport depends on the volume, weight and value of the goods to be transported on the one hand, and on the other hand, on the degree of demand and process requirements of the enterprise for a certain item.

    2.Product factors.

    Different characteristics of products will also affect logistics costs, mainly:

    1) Product value.

    Generally speaking, the greater the value of the product, the higher the requirements for the means of transportation it needs, and the cost of warehousing and inventory also increases as the value of the product increases. **Value means high cost in inventory, as well as an increase in packaging costs.

    2) Product density. The higher the product density, the more goods can be loaded in the same transport unit, and the lower the transportation cost. In the same way, the more goods are stored in a certain space area of the warehouse, the lower the inventory cost will be.

    3) Vulnerability. The impact of the fragility of goods on logistics costs is obvious, and fragile products put forward higher requirements for all aspects of logistics such as transportation, packaging, warehousing, etc. High-quality products can eliminate various logistics costs caused by defective products, waste products, etc., and returns.

    4) Special handling. Some items have special requirements for handling. For example, the handling of large items requires special loading tools; Some items need to be heated or cooled during handling, which will increase logistics costs.

    3.The spatial factor. The spatial factor refers to the company's manufacturing center or warehouse in the logistics system relative to the target market.

    or the location of the supply point. The direction of purchase determines the distance of the company's cargo transportation, and also affects the choice of transportation tools, purchase batch and other aspects. If the company is too far away from the target market, it will inevitably increase the cost of transportation and packaging; If you build or rent a warehouse in the target market, it will also increase the cost of inventory, so the space factor has a great impact on the logistics cost.

  3. Anonymous users2024-02-13

    There are many factors that affect the high cost of logistics and transportation, including human factors, such as the lack of professionals, the lack of strategic cost awareness and the lack of cost awareness of all employees; There are technical factors, such as backward transportation technology and equipment, advanced management technology means and management information system are not popular enough, and transportation planning is not scientific; There are institutional reasons, cost accounting, imperfect assessment system, etc.; There are also policy-level reasons, such as duplicate investment and duplicate construction of transportation resources, resulting in unnecessary waste of resources, and unreasonable comprehensive transportation planning.

    Due to the contradiction of benefits between logistics functional elements, other functional elements of logistics also play an important role in reducing transportation costs. For example, in order to reduce transportation costs, the organization of large-scale transportation, group transportation, large quantities, and small batches of transportation is conducive to saving transportation costs, but this will undoubtedly increase the storage cost of logistics, resulting in a backlog of enterprise funds, which is not conducive to the rapid circulation and turnover of funds, and increases financial costs. On the contrary, in order to reduce storage costs, enterprises can adopt advanced production and management concepts such as "zero inventory", transfer the pressure of inventory to transportation, distribution and production links, and adopt multi-batch and small-batch procurement models, which will inevitably increase transportation costs while reducing inventory costs.

    The factors affecting transportation costs are diverse and comprehensive, which requires the analysis of transportation costs to adopt a systematic perspective and conduct comprehensive analysis. In the process of controlling logistics and transportation costs, comprehensive management should also be carried out and multi-pronged.

  4. Anonymous users2024-02-12

    Logistics cost is to occupy a large proportion of the cost of the enterprise, the logistics cost of the enterprise is larger, the enterprise itself is also a pressure, want to reduce the logistics cost we have to reduce the burden of the logistics industry, reduce the burden of the logistics industry, and effectively reduce the logistics field charges and my taxes.

    In view of the existing situation, it is recommended to break the regional pattern, optimize the route, rationally allocate resources, pay attention to hidden costs, strengthen the management of the first chain, and carry out refined management of various logistics operation processes, so as to build a comprehensive logistics information platform. Before the effective management of the logistics cost of the enterprise, a comprehensive understanding of its influencing factors will make the management activities more targeted and achieve twice the result with half the effort.

    There are many factors that affect enterprise logistics, and here we mainly analyze five factors, such as enterprise products, logistics services, logistics operation methods, logistics services, logistics links and accounting methods.

    Enterprise product and logistics costs.

    The products of the enterprise are the logistics objects of the enterprise. Therefore, the company's products are the primary factor affecting logistics costs. The products of different enterprises may be different in terms of product type, nature, volume, quality and physical and chemical properties, which will have different impacts on the cost of logistics activities such as warehousing, transportation and material handling.

    Although the transportation cost and storage cost are generally calculated by weight and volume, the logistics cost of high-value products is relatively higher than that of general products. For example, in international logistics, an important principle of sea freight rates is; **Shipping rates are higher for value items than for lower value items. Because the transportation cost and storage cost both include insurance premiums, the insurance premiums are calculated according to the value ratio of the product, and the storage cost including the cost of maintaining the inventory is also calculated at a certain rate of the value of the product, which increases the logistics cost of the product.

  5. Anonymous users2024-02-11

    Summary. Hello dear, there is no comparison of logistics costs between different businesses. Different enterprises, different goods, logistics costs are definitely different.

    For example, a transformer factory and a national grain reserve warehouse are two different enterprises, and the transformer factory transports in and out of metal raw materials and transformers. The national grain reserve warehouse transports grain in and out of grain, how to compare the logistics costs of these two different enterprises, so there is no comparison.

    Are logistics costs comparable between different companies?

    Hello dear, there is no comparison of logistics costs between different businesses. The enterprise Lingyan is different, the product draft is different, and the logistics cost is definitely different. For example, a transformer factory and a national grain reserve warehouse are two different enterprises, and the transformer factory transports in and out of metal raw materials and transformers.

    The national grain reserve warehouse transports grain in and out of grain, how to compare the logistics costs of these two different enterprises, so there is no comparison.

    Logistics costs can't be the same. The scale of the enterprise is also small, the logistics cost will be high and low, the judgment of the enterprise is large, the number of goods, the logistics into the chain of filial piety is correspondingly low, the scale of the enterprise is small, the commodity is less, the logistics cost is correspondingly high, which is the inevitable law. Therefore, there is no comparison of logistics costs between enterprises.

  6. Anonymous users2024-02-10

    What is the impact of the increase in logistics costs on enterprises and consumers as follows: The increase in logistics costs will have some impact on enterprises and consumers. For enterprises, the surge in logistics costs may lead to an increase in the operating costs of the enterprise, thereby reducing the profit level of the enterprise.

    Increased logistics costs may also affect the competitiveness of a business, as its competitors may have an advantage as a result. For consumers, the increase in logistics costs may make the product ****, which means that consumers need to spend more money to buy the product. Increased logistics costs may also affect the availability of products, as businesses may reduce the amount of products if they cannot withstand the pressure of increased logistics costs.

    It should be noted that logistics costs are not the only factors that affect businesses and consumers, there are many other factors that will also have an impact on businesses and consumers, such as market competition, product quality, consumer demand for socks, etc.

  7. Anonymous users2024-02-09

    Summary. Hello, dear, the increase in logistics costs for enterprises and consumers has brought logistics costs**, which may squeeze the profit margins of e-commerce merchants and production enterprises, and is likely to increase some consumers' unnecessary shopping expenses. The high cost of warehousing and distribution will have a lot of adverse effects on enterprises.

    1. The profit margin of the enterprise is compressed 2, the market competitiveness is weakened 3, the capital is occupied, and the cash flow is affected For e-commerce, the cost of warehousing and distribution is part of the operating cost, and the store income minus the cost, and the rest is the profit of the enterprise. In the case of unchanged goods and sales volumes, the high cost of warehousing and distribution will inevitably affect the overall profit margin of the enterprise. <>

    What is the impact of increased logistics costs on businesses and consumers?

    Hello, dear, the increase in logistics costs for enterprises and consumers has brought logistics costs**, which may squeeze the profit margins of e-commerce merchants and production enterprises, and is likely to increase some consumers' unnecessary shopping expenses. The high cost of warehousing and distribution will have a very negative impact on enterprises. 1. The profit margin of the enterprise is compressed 2, the market competitiveness of Soshou is weakened 3, the capital is large, and the cash flow is affected For e-commerce, the cost of warehousing and distribution is part of the operating cost, and the store income minus the cost, and the rest is the profit of the enterprise.

    Under the condition that the commodity remains unchanged and the volume of the sales wheel remains unchanged, the high cost of warehousing and distribution will inevitably affect the overall profit margin of the enterprise. <>

    Including third-party warehousing, enterprises can concentrate on the development of core business limbs, and professional third-party warehousing and distribution companies flexibly use new technologies to realize the exchange of information for inventory and reduce costs. Moreover, third-party warehousing and distribution companies can meet the market's stricter requirements for warehousing and distribution in a fast and cost-effective way. In addition, after outsourcing third-party warehousing, the investment is reduced, and the equipment, warehouse, etc. do not need to be considered by the enterprise, which greatly ensures the viability of the enterprise.

    Finally, third-party warehousing can reduce additional management. The outsourcing of warehousing and distribution business can turn internal management activities into external contractual relations, and turn internal management responsibilities into external legal responsibilities. [Big Red Flower Hucha].

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