Navigating the Intersection: Cost Reduction and Sustainability in Logistics Strategies

Abstract: Background:           Cost reduction in logistics is crucial for improving profitability and achieving continuous sustainability improvement. Companies aim to maintain margins through cost reduction strategies in logistics yet staying sustainable in competitive markets.  Purpose:                  The thesis analyses the impact of supply chain management cost reduction on sustainability as well as the other way around, particularly focusing on logistics cost cutting and their influence on efficiency improvement and long-term sustainability. Method:                   The research methodology involves qualitative research, including interviews with experienced professionals in the logistics field who have tackled cost reduction and sustainability. Conclusion:             Achieving sustainability in supply chain management necessitates the successful integration of logistics strategies and the implementation of cost-cutting measures. Companies can strike a balance between economic efficiency and sustainable practices by optimizing operations, minimizing waste, and adopting responsible approaches.