Logistics management includes all activities in the planning,implementation and control of the forward and reverse flows and storage of goods, services and related information between the point of origin and the point of consumption (CSCMP: Council of Supply Chain Management Professionals). The aggregated costs associated with these activities are termed as logistics costs and though closely related, these are more than just transportation costs because logistics also includes warehousing, packaging & materials handling, and inventory control activities. These can be
direct costs that are usually visible e.g. freight and other shipment related rates, or indirect in the sense of qualitative dimensions like speed, timeliness and quality that may have cost implications (McCann, 1998). Foreign countries affect these logistics costs by posing geographical complexity that arises in foreign expansion and the spatial fragmentation of supply chain activities (Hesse and Rodrigue, 2004; Kinra and Kotzab, 2008).