Logistics costs and their impact on performance

Abstract

The development of an efficient and effective logistics system within a national economy has a direct impact on the work of enterprises, their management as well as their financial performance. To enable a good logistics system, it is necessary to achieve costs of a different nature, which vary depending on different factors. Logistics costs depend on the activities that the entity undertakes in its operations, that is, which part of the logistics it has in its operations. Globalization and the process of digitization have provided ways to make savings in the logistics costs that can be achieved by exploiting innovative ways of working. Lower costs largely mean a greater competitive advantage for the company as well as a higher profit.