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Costs, Revenues and Trade-offs

In: Effective Marketing Logistics

Author

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  • Graham Buxton

Abstract

The statement that physical distribution ‘is a cost area and purely a cost area,1’ whilst it does little to further an appreciation of the demand-creating potential of distribution operations, certainly focuses our attention on the need to develop and implement appropriate accounting procedures for efficient logistics systems construction and evaluation. There is a real need to accurately identify and allocate marketing logistics costs within relevant cost centres in order to carry out a full-scale evaluation of alternative logistics systems. We shall be concerned for the most part of this chapter with costs associated with physical distribution activities; however, at the end, we shall introduce the less easily quantifiable but equally important element of channel costs, and relate these to an overall evaluative framework.

Suggested Citation

  • Graham Buxton, 1975. "Costs, Revenues and Trade-offs," Palgrave Macmillan Books, in: Effective Marketing Logistics, chapter 3, pages 50-71, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-02101-7_3
    DOI: 10.1007/978-1-349-02101-7_3
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