Procurement Glossary
Logistics costs: definition, control and optimization in Procurement
November 19, 2025
Logistics costs include all expenses incurred for the transportation, storage, handling and distribution of goods. In Procurement , they play a central role in the overall cost assessment and supplier selection. A systematic analysis and control of logistics costs enables considerable savings potential and improves competitiveness. Find out below what logistics costs are, what optimization methods exist and how current trends influence the cost structure.
Key Facts
- Logistics costs account for an average of 10-15% of total costs in manufacturing companies
- Transportation and storage costs are the biggest cost drivers in logistics
- Digitalization and AI can reduce logistics costs by up to 20%
- Total cost of ownership analysis is essential for well-founded procurement decisions
- Sustainability requirements lead to rising logistics costs with simultaneous optimization potential
Contents
Definition: Logistics costs
Logistics costs are all direct and indirect costs arising from logistics activities along the value chain.
Components of logistics costs
Logistics costs are made up of various cost categories that require comprehensive consideration. A structured analysis enables targeted optimization measures.
- Transportation costs for goods transport
- Storage costs for inventory management and warehouse operations
- Handling costs for goods handling
- Packaging costs for product-compatible packaging
- Insurance costs for transportation risks
Logistics costs vs. transportation costs
While transportation costs only include pure transport, logistics costs include all activities related to the physical distribution of goods. This distinction is crucial for a total cost of ownership analysis.
Importance of logistics costs in Procurement
In strategic Procurement , logistics costs have a significant influence on supplier selection and procurement strategy. An integrated view with purchasing controlling enables well-founded decisions and sustainable cost savings.
Methods and procedures
Various methods enable a systematic analysis and optimization of logistics costs. The selection of a suitable approach depends on the size and complexity of the company.
Cost analysis and breakdown
A detailed cost analysis forms the basis for effective optimization measures. The cost driver analysis identifies the main factors influencing logistics costs.
- ABC analysis for prioritizing cost items
- Benchmarking with industry standards
- Activity-based costing for activity-based cost allocation
Optimization strategies
Systematic optimization approaches reduce logistics costs sustainably. The bundling levers offer considerable savings potential through volume effects.
Digital solutions
Modern technologies enable precise cost control and forecasting. Artificial intelligence automatically optimizes route planning and stock levels.
Tacto Intelligence
Combines deep procurement knowledge with the most powerful AI agents for strong Procurement.
Key figures for controlling logistics costs
Meaningful KPIs enable effective management and control of logistics costs. The correct selection and interpretation of KPIs is crucial for success.
Cost ratios
Basic cost indicators form the foundation for logistics cost control. Activity-based costing provides detailed insights into the cost structure.
- Logistics costs per sales unit (%)
- Transportation costs per shipment (€/shipment)
- Storage costs per item (€/item/year)
- Handling costs per pallet (€/pallet)
Efficiency and performance indicators
Performance indicators measure the efficiency of logistics processes. Systematic cost driver monitoring continuously identifies optimization potential.
Strategic performance indicators
Long-term KPIs support strategic decisions and investment planning. Integration into ROI management ensures sustainable value creation.
Risk factors and controls for logistics costs
Logistics costs are subject to various risk factors that require proactive management and control. Systematic risk analysis prevents unexpected cost increases.
Volatile cost factors
Fluctuating fuel prices and exchange rates have a significant impact on logistics costs. Currency hedging minimizes financial risks for international transports.
- Fuel price fluctuations of up to 30% per year
- Exchange rate risks for international transportation
- Seasonal capacity bottlenecks increase transportation costs
Operational risks
Delays in delivery and quality problems cause additional logistics costs. Effective controlling in Procurement identifies critical cost drivers at an early stage.
Regulatory changes
New laws and regulations have a lasting impact on logistics costs. Environmental requirements and safety regulations require continuous adjustments to cost planning and control.
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Practical example
An automotive supplier analyzes its logistics costs for the procurement of electronic components from Asia. The previous air freight transports account for 15% of the total procurement costs. A systematic total cost of ownership analysis is used to evaluate alternative transportation routes. The switch to sea freight with optimized inventory planning reduces logistics costs by 60%, with only slightly higher storage costs. At the same time, the CO2 balance is improved by 80%.
- Cost reduction from 15% to 6% of total procurement costs
- Implementation of a digital tracking system
- Building up strategic inventories to minimize risk
Current developments and effects
The logistics industry is subject to dynamic changes that have a significant impact on the cost structure. New technologies and changing customer requirements are shaping developments.
Digitization and automation
Artificial intelligence is revolutionizing logistics cost management through predictive analytics and autonomous optimization. Machine learning algorithms forecast cost trends and automatically identify potential savings.
- AI-based route optimization reduces transport costs by 15-25%
- Automated storage systems significantly reduce personnel costs
- Predictive maintenance minimizes unplanned downtime
Sustainability and green logistics
Environmental requirements lead to rising logistics costs, but at the same time create new opportunities for optimization. Sustainable logistics concepts are increasingly becoming a competitive factor.
Supply Chain Resilience
Global crises are increasing the focus on resilient supply chains. Diversification and regionalization have a lasting impact on the logistics cost structure and require new valuation approaches.
Conclusion
Logistics costs are a critical success factor in modern Procurement and require systematic management. The integration of digital technologies and sustainable concepts offers considerable optimization potential. A holistic total cost of ownership approach enables well-founded procurement decisions and sustainable competitive advantages. Companies that manage logistics costs strategically achieve measurable cost savings and improve their market position in the long term.
FAQ
What are the main components of logistics costs?
Logistics costs include transportation, storage, handling, packaging and insurance costs. Indirect costs also arise from the planning, control and administration of logistics processes. A complete recording of all cost categories is essential for well-founded decisions.
How can companies effectively reduce logistics costs?
Cost reductions can be achieved by bundling shipments, optimizing transport routes and digitalizing processes. Long-term partnerships with logistics service providers and the implementation of AI-based planning tools offer additional savings potential of 15-25%.
What role do logistics costs play in supplier selection?
Logistics costs are a decisive factor in the total cost of ownership assessment of suppliers. Favorable purchase prices can be overcompensated by high logistics costs. An integrated consideration of all cost components enables optimal supplier selection.
How do current trends affect logistics costs?
Digitalization and automation reduce logistics costs in the long term, but require investment. Sustainability requirements initially lead to higher costs, but create new efficiency potential. Geopolitical uncertainties increase the complexity and costs of logistics planning.
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