How much does logistics cost?

Logistic costs

1. Term: Costs incurred to overcome space, time or quantity disparities for the provision and availability of logistics capacity and operational readiness as well as the planning, implementation and control of individual logistical processes (storage, transport, order picking, palletizing, etc.).

See also logistics. Logistics costs essentially consist of: storage costs, transport costs, commissioning costs, handling costs, costs of logistics planning and control as well as (if allocated) IT and communication costs. Is defined company-related in different terms.

2. Collection and delimitation problems: a) Since many transport and storage processes are inextricably linked with production processes (e.g. material movement in integrated system lines), it is often difficult to define the proportional logistics costs.

b) In the flow of materials, there is usually a large number of short-term transports and storage; a separate recording of the costs incurred for this often turns out to be uneconomical.

c) There are considerable difficulties in delimiting the cross-sectional logistics function from other operational functions (e.g. production control costs, IT costs). The scope and content of the concept of logistics costs must therefore be determined on a company-specific basis.

See also logistics cost accounting, logistics performance.