Answer to Question #329474 in Management for Supply

Question

Logistics operations can be improved by optimizing aspects of the supply chain, including materials management, order fulfilment, and shipping.

It is important for the logistics team to be aware of the negative aspects of this technique that could affect the company’s operation effectiveness not only concentrating on just the brighter side for instance: high cost of transportation, greater length of supply-lead-time which results to supplies interruption or supply chain disruption and the effect of political weather or climate change resulting to likelihood of setbacks of product delivery.

With this regard,

3.2 Explain the role of Direct Product Profitability (DPP) in managing logistical costs