Even though logistics is part of the business vernacular, most executives still underestimate its potential to affect the bottom line of their businesses, viewing it as secondary to functions such as purchasing, production, or marketing. That view could not be more erroneous. Unless you work for a charity, you're in business to make money, and how you handle your logistics dramatically affects profit margin. Logistics costs represent some companies' single highest operating expenditure, accounting for as much as 9.5 percent to 30 percent of gross revenues. As a result, you can trim significant dollars off the operating budget anytime you streamline the logistics process.
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