Handling Costs

Handling costs can be broadly defined as the costs associated with moving, transferring, preparing, and otherwise handling inventory. This can include:

  • the cost of transportation,
  • labor,
  • materials involved in getting stock from one place to another.

In many cases, these costs account for a significant portion of a company’s logistics budget.

There are a few ways to minimize or manage handling costs.

  1. One is to choose an efficient transportation method that minimizes the distance goods need to travel.
  2. Another is to optimize the packaging and shipping process so that products are handled as few times as possible.
  3. Finally, it’s important to have accurate inventory records so that shipments are only made when necessary.

By taking into account all of these factors, businesses can reduce their overall handling costs and improve their logistics operations.

Related Links

Definition of Logistics Costs
Commentary: 5 Ways to Reduce Materials Handling Costs – Inbound Logistics