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Logistics Cost and Service - Supply Chain Consulting

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Interpretation for the Typical Company<br />

Sales prices were increased as shown by<br />

the product value increase. Sales revenue<br />

increased while the weight shipped<br />

declined.<br />

Since the shipping load was decreased, we<br />

should have expected costs to go down.<br />

They did, but by a lower amount than the<br />

sales price increase—probably because of<br />

higher wages, energy, taxes. etc.<br />

In summary, the environment aided logistics<br />

management’s cost reduction efforts.<br />

Establish, Inc./Herbert W. Davis <strong>and</strong> Company www.establishinc.com<br />

Copyright © 2004, Herbert W. Davis <strong>and</strong> Company/Establish, Inc.

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