Post by Hasan Taqvi

Logistics is often seen as one of the biggest cost centres in a business. But the story behind that number is usually more complex. Most logistics cost does not start with transport or warehousing. It starts earlier in demand planning, inventory positioning, supplier decisions and how choices are made under pressure. Small gaps in planning quietly show up later as higher costs. A stock mismatch becomes an urgent shipment. A delay in production becomes air freight. A visibility gap becomes overstock in one place and shortage in another. Each time the cost increases not because Logistics is inefficient but because it is responding to earlier decisions. What I have learned over time is : When logistics is treated as a standalone function, it ends up absorbing inefficiencies. When it is seen as part of the full business flow, many of these costs can be avoided. The goal is not only to move goods at the lowest cost. The real goal is to move them in a way that keeps service stable, inventory balanced and the business predictable. Because Logistics cost is rarely just a transport bill. It is often a reflection of how aligned the entire Supply Chain is. #Logistics #SupplyChain