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"Reducing Logistic Costs for Ladner Building Products" Introduction: Ladner is a National building materials distributor with 15-distribution centres nation wide. Recently, the company had been experiencing a loss due to high costs. This issue has become a dangerous problem at Ladner, and top management is now looking to understand the causes of this problem. Recommendations: Ladner can take one or a combination of the following options to improve its situation: - Reducing transportation costs by re-organizing the deliveries and encouraging pick-ups. - Changing staff evaluation methods so that they are aware of costs involved in Ladner's processes. - Changing and re-organizing the customer and product base. Analysis of transportation process: It is easy to see from a first look at exhibit 3 and exhibit 4 (that are provided in the readings) that the delivery process always produces losses. The total cost is always more than what the customer is charged. This is mainly due to customer...

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