The Logistic Puzzle: The Cost of 500 Kilograms

    One day, the company received a special large order to send a total of 500 kg of goods to an important American partner. As this is the largest export order so far,  Alex has invested a lot of energy and resources in this, hoping to take this opportunity to broaden the international market.

    Yet, Alex based on past experience and a general cognitive misconception —that the heavier the goods, the cheaper the unit price of freight . Thus, he elected to execute a single shipment, he was filled with joy that he had found a shortcut that would save both time and money.

    In reality, the express service agreement clearly stipulates that only goods weighing less than 300 kg are subject to preferential unit prices. Once this range is exceeded, the entire shipment will be shipped at a unit price of one kilogram, which is far beyond the original budget estimate.

    When the invoice was delivered and he saw the staggering numbers, Alex suddenly realized he made a mistake—It turns out that that high extra cost is enough to pay for 4-5 the latest iPhone! At this moment, his mood is complex, both remorse and frustration, but more is determined to learn from this lesson.

1.   Enhanced Internal Training  :Enhance learning and understanding of the terms of existing logistics contracts, especially with regard to weight limits and pricing structures.
2.   Operational Refinement :  Using a more scientific algorithm model to predict and plan the best freight mix to ensure that customer needs can be met and costs can be effectively controlled.
3.   Engage in dialogue with the courier company : Exploring the possibility of negotiating more flexible and reasonable pricing structures for future collaborations.