Discover 7 Major Logistics Costs and How to Manage them

Logistics involves all the processes of the supply chain in relation to the movement of the products. These processes, in turn, may vary according to the segment of the company, and may represent larger or smaller expenditures. A few, however, are often common. Among them, we can cite the following when you choose send overseas Express Mail Service (ส่ง ems ไป ต่าง ประเทศ, which is the term in Thai):

1. Stocking and storage

Inventory and warehousing costs range from the purchase of materials from suppliers to maintenance with storage, which requires labor expenses, space rent, taxes, entry and exit control, among others.

2. Packing

In addition to being important to make a good impression, the packaging should be studied to pack the product as safely as possible in order to avoid deterioration in the route. In addition, the size and weight occupied in the transport vehicle will be decisive for the calculation of the freight.

3. Transportation and freight

They will involve purchasing the appropriate vehicle, maintenance, depreciation, fuel, insurance, and labor, among others. In that regard, outsourcing transportation may be the best option.

4. Tax logistics

The collection of taxes with purchase of materials, production, transportation and labor, can weigh a lot for the company. Therefore, following tax planning may be best suited to avoid unnecessary collection.

5. Technology

In order for deliveries to be fast and efficient, it is necessary to have technological tools to optimize this process and reduce errors.

6. Distribution operations

Sustaining a logistical system requires diverse operational expenses, including fixed costs such as rent and equipment, and variable costs, such as insurance and manpower.

7. Human cost

Labor costs are spent throughout the entire logistics process, from the purchase of materials, through inventory management, to the delivery of the product to the final customer.

Rosita Lester

I’m Rosita Lester! I blog about tech, how to use it, and what you should know. I love spending time with my family and sharing stories of the day with them.