Astrada costing models helps you calculate impact of Pick & Pack, fully loaded trucks, small order quantity, assortment cost, optimisation of supply chain and more.
Logistics activities are oriented to create value to all the entities involved in process by supplying right quantity of material, at the right time, on the right place at the right price. To realize the required level of customer service at the lowest total cost, it is fundamental to analyse the logistics activities presents in the company and the cost that these activities generate. Simple, traditional costing systems based on volume will not give you more understanding or increased profitability.
Activity Based Costing will help you identify what activities that drives cost and also help you understand why to be able to increase the bottom line. Do you have a lot of customer that orders in small volume? Many unique products that is packed in different containers? Are you able to fully load the pallets and utilize the space in the truck, train, boat? What drives the transport costs? Number of stops, long distances, fuel prices? What different logistics chains are there? Cost per logistic chain? Activity Based Costing addresses to solve the problems concerning the use of traditional cost accounting system based on volume and the improvement of business profitability.
The setup of a good Logistics cost model permits the planning of more efficient collaborative relationships among the companies in the supply chain.
The activity cost analysis provides managers with useful information about labour and other resources, including consumption for products, consumers and supplying channels, leading to the management and control of the overheads.
Correct information about the differential costs arising from possible alteration of the collaboration relationships help companies to make those appropriate strategic decisions with their logistics activities. This in turn helps them realize, how best to modify in order to make the whole supply chain more competitive.
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