Logistics costs are the costs associated with the acquisition, storage, movement, and disposition of goods.
Typical logistics costs for distribution logistics when handling customer orders can be broken down into five main components depending on the stage in which the product finds itself along the supply chain.
The typical costs consist of:
- Warehousing costs: Incoming goods
- Warehousing costs: Storage
- Fulfillment costs: Pick & pack
- Shipping costs: Delivery
- Other logistics Costs: Returns
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