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  • Lev Pavlyshyn: No.15: To Reduce Logistic Costs

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    Lev Pavlishin
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    The document proposes reducing logistics costs as a problem for businesses to address. It suggests having warehouses closer to customers to cut transport costs over long distances and automating processes to decrease labor expenses and centralize operations in a more proactive way. Considering each part of the supply chain is important to lower logistic costs through even small reductions across all links.

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    Essay 6

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    The document proposes reducing logistics costs as a problem for businesses to address. It suggests having warehouses closer to customers to cut transport costs over long distances and automating processes to decrease labor expenses and centralize operations in a more proactive way. Considering each part of the supply chain is important to lower logistic costs through even small reductions across all links.

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    4 views1 page

    Lev Pavlyshyn: No.15: To Reduce Logistic Costs

    Uploaded by

    Lev Pavlishin
    The document proposes reducing logistics costs as a problem for businesses to address. It suggests having warehouses closer to customers to cut transport costs over long distances and automating processes to decrease labor expenses and centralize operations in a more proactive way. Considering each part of the supply chain is important to lower logistic costs through even small reductions across all links.

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    © All Rights Reserved
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    Understanding Business II

    Management and Finance


    2019/2020 edition

    Task: to propose a problem definition based on a chapter content

    Lev Pavlyshyn

    Essay on Chapter: no.15


    Problem: to reduce logistic costs

    Transporting products is a usual operation for many businesses for which they spend a large
    amount of money. My 2 core elements of solving this problem are warehouse and
    automation.

    If you are shipping goods from point A to point B, especially over a long distance, you can
    store products closer to your customers and thus significantly reduce transport costs. In
    addition, it also affects the safety of products, therefore, reduces the risk during their
    transportation.

    To reduce logistics costs, automation is key. Regulating, automating and optimizing manual
    processes can reduce labor cost, centralize production operations and create a more
    proactive approach to customer satisfaction.

    Logistic costs are influenced by many factors and to reduce them you need to consider every
    part in supply chain; even lowering part of the cost in each link, as a result, it will save a
    significant amount.

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