Cost reduction is the process used by companies to reduce their costs and increase their

profits.
There are various kinds of costs such as transportation cost, inventory cost, packaging
costs, distribution costs, etc.
Business can maximize their profit only through minimizing the costs occurred in the
business activities
The main objective of logistics management is achieving customer satisfaction. It can be
only done through providing superior customer service
The customer will be satisfied if he get the right product, in the right quantity, at the
right place, at the right time, with the right cost.