Why Transportation And Logistics cost Different in all Companies ?

There are many serious reasons for this, due to which the following side effects are often seen as a result of narrow mentality.

  1. The government has not fixed the fares for kilometres in the trucking industry.
  2. Transport union is weak
  3. There has not been the expected development of industrial or mandis everywhere.
  4. Due to capitalism, the dominance of very few people has been built on this business, whose arbitrary monopoly runs.
  5. These sadhus, babas, political leaders and foreigners use black money to promote capitalism and seize business. And also use violent routes for profit. These news are seen in News papers .
  6. Due to lack of unity, bureaucracy increased and the life of the drivers became miserable. Even after working 18 to 20 hours, the driver class is not able to meet their needs.
  7. Vehicle prices and resources are getting expensive every day, but fares have not increased since last decade and expenses have increased by more than 80%.
  8. Transporter pays 18% to 28% tax on every expense but does not get any taxi refund benefit .
  9. There is a problem of return load all the time. The return load from Tier 2 Tier 3 city has to wait 5 to 10 days. The load is not available from other places.
  10. Due to unsafe environment, economic crisis, corruption and misbehaviour of people all the time, the driver is in the grip of intoxication, due to which the accidents are increasing.
  11. Freight payment security and sly full deduction
  12. The government and government policies fail to do our business.

All of the above will affect your logistics and transportation cost.

Note :- Last decade ago the transportation cost was 5% of your product. At present it has increased from 8 to 30%