Typically, ocean freight makes up only 30% of your total supply chain costs. This means that it’s almost impossible to reduce your overall logistics costs without ensuring that every step of the shipping process is handled efficiently.

When importers ignore the potential causes of hidden costs in their supply chain, it ultimately leads to increased logistics expenditure. But how can you identify these causes? Careful evaluation and taking a top-down approach to the logistics process is the answer. Most hidden costs are variables, which means they can be nullified or minimised through careful decision-making. An effective logistics cost management system can help you take note of these costs and take the actions necessary to avoid them.

Let’s look at some of the common hidden costs and how you can stop leakage of your revenue.

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