Understanding the impact of logistics cost

Understanding the cost of doing business means knowing every aspect of the company and having the expertise to break down a cost analysis of every operation. For decision-makers, not knowing how every small piece affects the overall cost of business can cause any minimal challenge to blow up into a major issue of concern.

A recent article from Cerasis examined logistics and transportation expenses and where they fit into the overall cost of doing business.

"As logistics and transportation expenses take a larger bite out of every sales dollar, companies must continually analyze their freight expense relationship to their overall cost of doing business," the article reads. "Unfortunately, many companies lack the technical expertise to accomplish these analysis and therefore usually end up spending more on transportation services then they really need to. To add insult to injury, they also rarely have reporting mechanisms to properly monitor those expenses."

The piece goes on to say that the right analysis will tell the whole story when it comes to the cost of doing business. This helps organizations identify and address concern areas early on before they are able to balloon into a financial albatross. For businesses that rely on transportation, remaining in the loop is critical.

Shipping and logistics is one of those things that has many moving parts that decision-makers need to stay on top of in-order to remain effective. It is a difficult thing to manage alone. Thankfully, third party logistics and shipping providers can help organizations tackle this critical area of business with ease.