December 2012
Intermediate to advanced
561 pages
22h 33m
English
Content preview from Logistics Management ,3rd Edition by Pearson
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328 • Logistics Management
20.1 INTRODUCTION
M. Porter mentioned cost leadership as one of the three strategies the business fi rms should adopt
for gaining a competitive edge. Logistics is the area where the fi rm has a lot of scope for cost
control and reduction. Logistics cost varies from 5 to 35 per cent of sales for different product-
market confi gurations in different industries. Hence the management of logistics costs has become
increasingly important due to its impact on product profi tability, product pricing, customer profi t-
ability and, ultimately, corporate profi tability. Logistics can offer a key source of competitive advan-
tage thr ...
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