Could you also help with the following discussion question please:
The professional logistics manager must develop a knowledge base that is integrated with other disciplines. Financial analysis and understanding costs associated with a company or agency is essential in the fight to reduce costs. Based on what you learned in this course, describe ways to reduce the total cost approach to logistics.
For an example, inventory on the shelf costs money. If sales remain the same, reducing costs will increase profits. As a professional logistics manager, your responsibility is to reduce costs in your areas of responsibility.
Here is an example:
There are many ways that a logistics manager can increase profit for a firm. There are transportation measures, warehousing measures, inventory measures, and design and implementation measures that make of the major categories where money can be saved (Murphy & Knemeyer, 2015). There are many ways within those groups that money can be saved and turned into profit.
- Logistics cost reduction by focusing on safety. Shipper and logistics providers must understand safety/OSHA considerations. Injuries can cost the company money as well as fines from OSHA.
- Labor cost. Analyze labor reduction for warehousing operations. Using software can help as well as offering incentives to your employees.
- Focus on preventative maintenance. This will save money by reducing equipment failures.
- Focus on suppliers for logistic cost reduction. This can be accomplished by collaborating with suppliers and possibly starting a partnership.
- Focus on the customer. Keep the customer happy and reduce the need of as much customer support as possible (Intrieri, 2016).