Conquer the CLTD Challenge 2026 – Navigate Your Path to Logistics Success!

Risk Cost is the category that accurately encompasses expenses such as pilferage and insurance in logistics. This cost category is concerned with the potential losses and uncertainties associated with supply chain operations. Pilferage refers to theft, which can represent a significant financial loss for businesses. Insurance costs are incurred to mitigate against these and other risks, providing financial protection against various vulnerabilities. By addressing these types of costs, businesses can measure and manage the financial impact of risks, leading to more informed decision-making in logistics operations.

The other categories do not encompass these specific expenses. Capital Cost relates to the investment needed for assets such as vehicles and facilities. Service Cost includes expenses related to customer service and logistical support but does not specifically address risks. Operational Cost covers the day-to-day expenses of running logistics operations, such as transportation or storage, without incorporating the elements of risk like pilferage and insurance. Therefore, Risk Cost is the most appropriate category for these specific types of expenses in logistics.