Net landed cost of goods (NLCOG), the total cost associated with getting goods into customers’ hands, consists of cost of distribution (CoD) and cost of manufacturing (CoM). Squeezed for efficiency over the last few decades, manufacturing costs now offer little opportunity to drive further savings. Costs of distribution, on the other hand, present a new and often unexplored territory for manufacturers and retailers to increase margin and improve customer service.
In a recent article in Internet Retailing, Logistyx Technologies President and Chief Sales Officer Ken Fleming advises manufacturers to look at both halves of their net landed costs of goods to unlock savings, and he celebrates cost of distribution as the “new cost-savings champion.”
With the right tools, manufacturers can quickly determine their most efficient shipping options for each and every parcel to unlock these savings without sacrificing customer service.
Read Ken’s full article on Internet Retailing: “Look beyond cost of manufacturing to unlock cost-savings.”