Can already reduced logistics budgets be cut even further―by 5% or more―without adversely affecting customer services or productivity? A lot depends on a company's willingness to take the time to find the hidden costs in its logistics network and to understand what constitutes its total cost of logistics. If you do, you'll find a host of opportunities in reverse logistics, better data visibility, logistics management, distribution, warehouse operations and worker productivity that you never thought existed. "Logistics [costs] become hidden because companies quit looking [at them]," says Brad Fitzgerald, a solutions engineer manager with United Parcel Service, Atlanta. It is very common, he explains, for companies to set up processes and add new procedures over the years, "but fail to review them to make sure they [are] cost effective."
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