Logistics Cost

Trade facilitation looks at reducing transaction costs at international borders as well as complexity of international trade process at national border, this it takes minimal time for cross-border transaction.

Logistics cost component will expected to increase

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Logistics cost has always been recognised as the main purpose of logistics performance. It is crucial towards keeping the cost as low as possible. Five main subcomponents that demonstrates in general about the perception of increment of logistics cost by 2017 are 

  1. Transaction costs (transportation cost)
  2. Inventory and storage cost
  3. Administation
  4. Other logistics cost (non-financial such as insurance)

The graph demonstrates the percentage of respondents agree with the statement

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Proportion of logistics cost in firm turnover

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Measurement of logistics cost in firm turnover is still remains incoherent. However, based on the perception of respondents, they agree that the portion of logistics cost is relatively higher due to transportation cost that mostly fluctuate. The graph demonstrates that frequency of respondents stated their logistics cost against in firm turnover accroding to ten different logistics activities. 

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