Certified in Logistics, Transportation and Distribution (CLTD) 2025 – 400 Free Practice Questions to Pass the Exam

The primary goal of managing transportation costs is to optimize the landed cost. Landed cost refers to the total cost of a product once it has arrived at the buyer's door, including the product price, shipping costs, customs duties, taxes, and any other charges incurred in preparation for sale. By focusing on optimizing landed cost, organizations aim to strike a balance between transportation expenses and other associated costs, such as tariffs and storage, ultimately impacting their competitiveness and profitability.

Optimizing landed cost entails making strategic decisions about shipping methods, routes, and packaging, which can lead to more efficient operations. This optimization can help companies not only in reducing costs but also in improving inventory management and pricing strategies, which directly affect the bottom line.

The other options, while important in their own right, do not encapsulate the overarching goal of transportation cost management as effectively as optimizing landed cost does. Maximizing order fulfillment, minimizing delivery time, and enhancing customer service are all vital objectives but are often influenced by transportation costs rather than serving as the primary goal in cost management.