{"id":23839,"date":"2024-08-15T12:03:22","date_gmt":"2024-08-15T09:03:22","guid":{"rendered":"https:\/\/fractory.com\/?p=23839"},"modified":"2024-12-17T18:23:15","modified_gmt":"2024-12-17T16:23:15","slug":"transportation-cost-explained","status":"publish","type":"post","link":"https:\/\/fractory.com\/transportation-cost-explained\/","title":{"rendered":"Supply Chain Issues: Transportation Cost"},"content":{"rendered":"

Supply chains constantly face several challenges<\/a>, including fluctuating demand, inventory shortages, and port congestion<\/a>. Among these, rising transportation costs<\/strong> have emerged as a significant concern. High fuel prices, shortage of drivers, and new regulations are increasingly complicating supply chain management for businesses. Understanding the impact of these costs on supply chains and their implications for procurement<\/a> is crucial. Let’s examine how these costs affect supply chains and what can be done to address them.<\/p>\n

Transportation Cost – A Major Concern for Supply Chains<\/span><\/h2>\n

Transportation cost is the expenses related to moving goods and materials<\/strong>. These include costs for raw materials, driver wages, employee salaries, vehicle maintenance, vehicle operations, and transporting finished products. Some transportation costs are fixed, while others vary. Transportation costs can be divided into several categories based on different aspects of the transportation process:<\/p>\n