The profitability of a logistics company


I had applied for work in a logistics company a few years back. One of the things I learned was the profitability prospect that only the big companies have the assurance to earn a profit. Small companies will have an issue with the regulations particularly the restrictions on the release of good from the port which directly hampers the delivery to the clients. I have to agree that a cargo which is delayed for 1 week can be penalized by the client.


The customs duties is the primary concern for the importation in the port. But there are other expenses involved before the imported products could be released. That is the importance of the customs broker who would handle the facilitation for the early release.


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    • From the position of the organization's management, logistics can be considered as a strategic management of material flows in the supply process: procurement, transportation, sale and storage of materials, parts and finished equipment (machinery and other things). The concept also includes the management of relevant information flows as well as financial flows.