Minimising logistics cost is the one of firm’s strategy to remain competitive. It is part of various logistics performance dimensions such as quality and flexibility. Logistics cost includes transaction costs (those related to transport and trade, for processing permits, customs, standards), financial costs (inventory, storage, security) and non-financial costs (insurance). In our context, we are focusing on four main activities and administration, including
- Transport and cargo handling cost
- Warehousing cost
- Inventory carrying cost
- Logistics administration
Based on the graph, it is demonstrates that between 60 percent to 70 percent of respondents agree that these cost are below than 30 percent out of firm turnover.