TECHNICAL COMPETENCE CENTRE

Logistics Costs

Logistics Costs: satisfying the multiple business needs efficiently

Each company must handle the distribution of their own products and services: this activity often has significant strategic-competitive implications. The connected costs, however, are managed by different business units, each one with different, sometimes opposed objectives.

It is thus very complex to optimize logistics costs from within. The sales department tends to offer clients an excellent service, the procurement office often have their hands tied by commercial obligations, the shipping office tends to be too loyal to a certain supplier. This is exactly why the interventions that deal with assessing the suitability of internal processes and behaviour as a unified vision are highly appreciated because they can reassure management or highlight certain organizational gaps that need to be addressed. The Competence Centre for Logistics Costs has accrued considerable experience on clients of different sizes who belong to different product sectors, with different needs and peculiarities, both national and international.

Transport and Couriers

Critical Issues

This cost category is subject to the company's variations in terms of quality and quantity as regards new products, new markets, different procurement modes and different distribution criteria. This is exactly why it is necessary to monitor every change factor, so as to prepare a specific solution in real time to increase cost efficiency.

Intervention Strategy

Needs analysis and creation of a mindful budget, alongside selection and validation of suppliers, management of price lists, contracts and framework agreements. Optimization of logistics processes, rationalization of geographical routes and transport modes. Usage of dynamic software models for the management of price lists and selection of best provider by route (SELFOR®) and savings monitoring (MONSAV®).

Packaging

Critical Issues

This cost category requires specific knowledge of the characteristics of every type of product within the different product sectors, to identify the best materials and solutions, in terms of image, safety and space optimization. This is often a cost controlled by different business units, so it is not always easy to organize the proper decision-making process to govern packaging choices.

Intervention Strategy

Cost optimization for primary, secondary and tertiary packaging, through targeted market surveys and selection and validation of suppliers. Possible packaging redesign and introduction of new materials, with positive effect on overall logistics flows. Assessment of printing costs based on the desired impact, assessment of optimal purchasing lots.

Warehouse, Stockpile and Internal Handling

Critical Issues

The correct handling of this cost category requires the ability to satisfy the production and sales needs of the company satisfactorily so as to maximize the quality of client service and minimize costs for the company. One of the main critical issues is thus the importance of getting different responsible parties to talk to each other, for a coordinated and effective management.

Intervention Strategy

Cost Management to balance the quality of customer service with the efficiency of stockpile management, even by intervening on the infrastructure and layout of the warehouse. Usage of calculation models for ideal stockpile quantities, programming of procurement and monitoring of turnover. Assessment of the adopted organizational model to manage the warehouse (in-house or outsourcing) and possible optimization even through selection and management of suppliers and contracts.

Customs Fees

Critical Issues

This cost category involves deep knowledge of the different legal and bureaucratic procedures tied to international import-export activities. They are constantly evolving regulations. Furthermore, the amounts at stake are often quite significant.

Intervention Strategy

Identification of the most financially advantageous customs/taxation criteria for any exchange with other countries. Minimization of the economic and bureaucratic impact for import-export, using skills that allow us to identify the best solutions for the movement of goods, as regards procedures foreseen by national, European and international customs regulations.

Excise Recovery

Critical Issues

This cost category has to do with the complex procedures to recognize discounts and/or exemption from excise, as regards energy products (gas, methane, diesel fuel, LPG, ULSD, etc.) used under certain conditions.

Intervention Strategy

Obtain reimbursement of excise quota on diesel fuel use for machinery and on the usage of energy products for industrial processes; technological support (technical feasibility analysis, supply of instruments, plant inspection, etc.) and bureaucratic-administrative support (handing in of reimbursement claims, authorization issuance, management of energy-related accounting, etc.).

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