1 Costs
The purpose of logistics is to reduce costs, notably transport costs. In addition, economies of
time and improvements in service reliability, including flexibility, are further objectives.
Corporations involved in the physical distribution of freight are highly supportive of
strategies that enable them to cut transport costs in the present competitive environment. The
cost-saving strategies pursued by logistic operators are often at variance with environmental
considerations, however. Environmental costs are often externalized. This means that the
benefits of logistics are realised by the users (and eventually to the consumer if the benefits
are shared along the supply chain), but the environment assumes a wide variety of burdens
and costs. Society in general, and many individuals in particular, are becoming less willing
to accept these costs, and pressure is increasingly being put on governments and
corporations to include greater environmental considerations in their activities.