The Use of Cost Information in Frozen Food Logistics

Transportation of different kinds of products to different locations is an activity that requires specialization. From this point of view, logistics industry plays a vital role in providing efficiency in economic activities. When logistics activities, which already have a complex structure, are managed inefficiently, business activities in general also become inefficient. In this context, preferring the third party logistics service, which is biasedly considered as an additional cost creating factor, can be supported to be a possible way in cost cutting. In this study, the results of operations of a medium sized frozen food transporting company is considered for making this consideration. By calculating all the costs of logistics activities (goods reception, storage, demand collection and transportation) done in the frame of operational framework of workflows, monetary advantages and disadvantages are considered for comparing the alternatives of carrying out the logistics operations with the companies’ own resources and using outsourcing services. Results show that carrying out the logistics activities by outsourcing provides a medium sized enterprise a more flexible logistics service with less cost and higher customer satisfaction.