These days, Nigerian finance professionals are entrusted with not only balancing the books but also managing costs. For finance professionals in the logistics industry where things are constantly in motion, uncovering hidden and unnecessary expenses becomes a crucial responsibility.
In this article, we analyze logistics activities that may be incurring more costs than they should and share recommendations on how to manage them.
- Transportation costs:
You can hardly begin logistics cost analysis without peering into transportation expenses. Examine freight charges, fuel costs, and transportation overheads to reveal hidden charges. This transparency empowers you to negotiate favorable deals and optimize transportation efficiency for your organization.
- Storage Expenses:
Warehousing operates as a silent contributor to logistics costs. Delve into storage expenses, handling charges, and inventory management costs to unveil hidden inefficiencies. This scrutiny allows for streamlined processes, minimizing unnecessary expenditures and enhancing overall financial control.
- Customs and Duties:
If your organization operates on a global scale, customs and duties can impose unexpected costs. Conduct a thorough analysis of international logistics to find hidden fees, tariffs, and compliance costs. This knowledge ensures financial transparency and informs strategic decision-making for businesses engaged in global trade.
- Supplier Contracts and Terms
Supplier relationships can be both allies and sources of hidden expenses. Accountants scrutinize contracts, payment terms, and relationships to uncover hidden costs. This diligence ensures a clear understanding of the true cost of goods sold, preventing financial surprises and fostering healthier supplier partnerships.
Logistics cost analysis goes beyond uncovering hidden expenses; it’s about optimizing operations. Nigerian accountants collaborate with logistics teams to identify areas for efficiency improvement, cost reduction, and overall supply chain optimization. This strategic approach transforms logistics challenges into opportunities for improved profit margins.
Software like Duplo can offer real-time visibility into logistics financial operations, transforming data into actionable insights. To learn how this works, get started with Duplo today.
