Today Logistics Management has gained special attention because of high emphasize on quality of goods and services as well as intense price competition which is forcing companies to control the costs to survive in the market. Logistics Management is conventionally defined as the process that ensures the delivery of the right product at the right place at the right time in right quantities to its customers. Normally when logistics management is talked about, the entire supply chain is considered, from the procurement of raw material to the delivery of finished good and services to customers. Logistics activities can be categorized as inbound and outbound logistic activities. Activities from procurement to final production are called inbound activities while activities concerned with distribution channel that is delivery of the finished goods and services to the customers from the manufacturer?s place are called outbound activities Four main areas of logistics management are pr EasyAzon Review ocurement, transport, transshipment and storage of goods. Supply chain logistics costs account from 5% to 50% of a product?s total cost, depending on the industry. Following are the tips to reduce cost in these four areas: Procurement Keep your scope wider and search for the suppliers of your required inputs who can offer you in more favorable terms. Look for import options also. This does not mean changing the suppliers very frequently but just awareness about such suppliers can strengthen your company?s bargaining power. Always try to negotiate for favorable prices. Understand the true costs of sourcing. Consider all the costs freight, duty, inventory carrying costs, brokerage involved in procuring. Comparing these costs will help company to decide on the best option. Work with suppliers on the design and specifications for each order to identify cost savings that allow them to lower their prices. Switch to lower priced substitutes available for the required inputs.