*Asst Professor, Department of Management Studies, Anna University of Technology (Mam Campus), Tiruchirappalli-24
There have been various interpretations of logistics cost management from the aspect of theory and practices, until “logistics cost account unified standard” was published in japan, 1977. The same established a unified standard and a basic reference in the whole world and boosted Japan as the leading country of world logistics control. Logistics cost control technology policy had an epoch-making value and effect on the development of logistics cost control.
Total logistics cost analysis is the key to manage logistics function. It is important that management consider the total of all logistics costs. Controls should be instituted to minimize the total costs of logistics rather than to minimize the cost of each component. However, determining which component of logistics costs to reduce can be problematic, since there is a trade-off between cost components. In fact, attempts to reduce the cost of individual logistics activities in isolation may even lead to greater total logistics costs. Thus, at the level of the firm, attempts should be made to integrate the logistics system so as to minimize total costs involved.
This is a fundamental study and this paper discuses various costs pertaining to Logistics that are faced by a shipper who desires to distribute products and services not only in the domestic but also in overseas markets. It also deals with the perceived problems in the management and control of logistics costs and approaches to strengthening the logistics cost and management control.
