A STUDY ON LOGISTICS COST MANAGEMENT AND ITS IMPACT ON OPERATIONAL EFFICIENCY IN SUPPLY CHAINS

Logistics cost management has been an important part of the supply chain performance in all developed as well as developing countries. In India, which has high logistics costs comparatively, companies face constant pressure to improve their efficiency in operations and maintain their quality. This study focuses on the connections between components of logistics cost, like transportation, warehousing and administrative expenses and their impact on how efficiently a business runs. The study is based on secondary data collected from company reports, academic literature and case studies from leading companies. The analysis shows that the inadequate logistics systems considerably increase the delays in operation and the cost of the total supply. However, companies that adopt systematic strategies for cost management, supported by the advanced digital tools like automation technologies, route optimisation systems, and real-time monitoring systems, indicate improved speed in delivery, decreased wastage and better use of resources. Case studies of companies like Flipkart and Amazon further explain how a merged logistics network plays a role in cost reduction and develops efficiency in service. The study states that logistics cost management is not a necessity in operation but a strategic function that affects the competition directly and the long-term viability of the supply chain.