Industrial recovery: the importance of logistical strategy
Communiqué publié le 02/07/2012
For DDS Logistics CEO Jérôme Bour, the distance of a production or supply location is a key factor that must be taken into account when looking at a company’s general strategy.
Defining the economic stakes of transport first
“It is true” Jérôme Bour stresses, “that those countries often have lower direct labor costs. Although the average wages are increasing significantly in China, there are many countries in the South Asia area such as Bangladesh or Vietnam where labor is still cheap. However
The financial consequences of such a decision can be the opposite of what was intended in the first place, which is why it is crucial to calculate accurately the costs of long distance transport logistics.
Identifying all cost parameters
That is why to avoid unpleasant surprises and rely on accurate estimates, it is important to list all Supply Chain cost items: of course there is the logistical cost itself (transport and warehousing) but also customs clearance, financial expenses (floating stock value…),
Analyzing the alternatives
To do so there are different tools that not only give you accurate insight into the total cost delivered but also total control over Supply Chain management with estimated profitability gains going from 5 to 10% thanks to savings on the direct purchase and logistics budget.
Alinéa Anne Lasserre Arcelor-Mittal Carrefour Celtic China Group Chargeur Chine CO2 Commerce International Commissionnaire Transport Conforama Costing DDS Asia DDS Freight DDS Logistics DDS Shipper DDS Truck EAI Essilor Eurocopter Fabrice Lebret Gefco Overseas Green Supply Grosfillex INTTRA Jérôme Bour KWE Leroy Merlin Manitou Microsoft Monaco Logistique Nexans Olivier Schulman R&D REACH Rois de la Supply Chain SaaS SITL Soget Sourcing TMS Total Trade Collaborate Transitaires WMS