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 companys 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.

Notes

Explain the role of Direct Product Profitability (DPP) in managing logistical costs. Students must explain how this methodology should be implemented, and its impact on logistics, and how businesses can benefit from it.