Logistics Cost and Service - Supply Chain Consulting
Logistics Cost and Service - Supply Chain Consulting
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.