Concept

LogCOST is designed to help shippers and 3PLs calculate actual and planned transport costs.

It uses complex transport tariffs, which can be set specifically by you or as global fallback values. LogCOST can derive transport costs directly from the production and sales forecast. For both, we use forecasts down to SKU-level to derive transport volumes. On the inbound side, we link the bill of materials, planned production output and relevant suppliers to derive transport volumes. We use the same method for intercompany transports. For the outbound volumes, we use forecasts per region to derive transport costs for the finished goods. LogCOST merges this information to create transports and assess them with company specific, detailed transport tariffs. As a result, you can calculate inbound, intercompany and outbound costs on an SKU and product level. In addition, you can control and report planned and actual transport costs in one tool. This enables you to identify and analyze at an early stage if, where and why you are running out of budget. To calculate costs for a specific shipment or product, you follow these steps:

  1. Derive transport information from sales forecasts (transport volumes, plants and supplier)
  2. Consolidate shipments (consolidation by fallback or individual business rules)
  3. Generate transports according to transport volumes (in- and outbound), source and target locations (plants and supplier locations)
  4. Evaluate costs for the whole transport
  5. Break down costs to shipment/ product level

Due to basic fallback values and consolidation rules, you can use LogCOST even with missing information. Furthermore, you can set optimization algorithms to evaluate the transport costs of your actual and optimized network setup.

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