Logistic Costs, 10% of Products' Shelf Price, Against 4% in the Netherlands

05.20.2011 ZF English

At least 10% of shelf prices of products in Romanian stores are accounted for by logistic costs, namely transport and storage, compared with 4%-6% in the Netherlands and France, says Robin J. Martens, general manager of Archicom, a Dutch logistic consultancy firm.

"Most Romanian producers or importers handle transport and logistics themselves. According to our data, just 8% of the companies on the Romanian market have outsourced their transport and logistics operations, compared with 80% in France," stated Martens during a logistics workshop.

He specified that the distribution networks of importers are not very efficient, thus leading to rising shelf prices.

In his opinion, the number of intermediaries distributing a product needs to be reduced in order to boost distribution efficiency and implicitly lowering costs and spurring profit.