Logistics trade-offs

Abstract

The purpose of this paper is to analyse the knowledge and evaluation of the trade-offs of logistics costs by companies, as well as their impact on their financial economic performance, due to the importance of the relationship between logistics costs and financial performance and the relevance of the study for the Portuguese business enterprises. A questionnaire based on the theoretical framework was administered to professionals at selected companies. The survey, answered by 48 enterprises, shows that the although Portuguese logistics professionals have extensive experience and academic preparation, they continue to make pressure for individual cost cuts, not considering the existing trade-offs, incurring in profit losses.