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Supply chain logistics Week discussion 2

Supply chain logistics Week discussion 2

Q Discuss how logistics decisions affect net profit margin in an organization.

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The most pertinent considerations of the margin of net profit for managers of logistics are total expenses, cost of goods sold, and sales. A chief influence of activities of logistics on sales will occur via improvement of the service to customer. Cost of goods sold may be impacted by logistics through any improvement in the efficiency related to logistics or through activities of procurement by which labor is enabled to be more productive. Expenses may consist of activities related to logistics like inventory, warehousing, and transportation. A decision of logistics to decrease the number of shipments less-than-truckload through a strategy of consolidation would emphasize in the category of costs of transportation