how beneficial are low cost logistics

Managing cost is one of the most challenging matters in logistics and frequently we have seen companies which just try to cut headcount in order to get quick cost reduction. Some of the major cost components are:

· Cost of low productivity

· Staff/Labour

· Packaging

· Distribution

· Utilities such as heat, water and electricity.

Normally small and medium sized businesses need help with their supply chain management. The reason is this they do not have enough budgets to invest in all types of equipments and software which are required and are important in supply chain management. In order to get help with keeping track and management of supply chain, the business owners choose to get help from different logistics companies.

Purpose of Logistic teams

The logistics team helps in managing and implementing complex operations. Normally in business sense, logistics known as management of flow of things between the point of consumption and point of origin in order to meet the requirements of corporation and customer. Some of the general workings in low cost logistics systems are information systems, resources and logistics services. The resources which are normally managed and measured in logistics are food, animals, equipments and materials.