Logistics. Logistics costs (most important)

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Logistics. Logistics costs (most important)

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83. LOGISTICS COSTS

Logistic costs - a set of costs for managing the movement of material flows throughout the logistics system from suppliers of raw materials through a manufacturing enterprise to the end consumer.

For determining efficiency of the logistics system enterprises compare internal and external costs. It determines which activities are performed better than other manufacturers, compares the structure of logistics costs at this enterprise and its competitors.

Methods for analyzing logistics costs:

1) strategic analysis is a comparison of the position of an enterprise in terms of customer service costs with another engaged in a similar type of activity;

2) functional cost analysis is a method based on a thorough study of the individual stages of the process of fulfilling consumer orders and finding out the possibility of their standardization for the transition to cheaper technologies.

Principles of control over logistics costs:

1) efforts are concentrated on controlling costs where they occur;

2) data on different types of costs are processed differently;

3) an effective way to reduce costs is to reduce the types of activities (procedures, works, operations). Attempts to reduce incremental costs are rarely effective. One should not try to do at a low cost what should not have been done at all;

4) the activity of the enterprise should be assessed as a whole. For the economic valuation of a business, you need to have

area will affect performance in another;

5) it is not enough to control only those costs that arise within one enterprise; it is necessary to identify the mechanism of their formation and the influence of external factors.

Ways to reduce the level of logistics costs:

1) negotiating with suppliers and buyers to establish lower selling and retail prices, as well as trade discounts;

2) search for cheaper substitutes for resources;

3) identification by analysis and revision of the supply chain of those activities that do not create added value, and their exclusion;

4) offsetting the increase in costs in one link of the supply chain by reducing costs in another;

5) improving the interaction of the enterprise with its suppliers and consumers in the supply chain. For example, coordination of the activities of the enterprise and its partners in the field of timely delivery of products reduces the level of costs for warehouse operations, inventory management, storage and delivery of finished products;

6) conducting regular internal audits with subsequent identification of reserves to improve the use of enterprise resources;

7) updating the most costly links in the supply chain by attracting investment in the business;

8) increasing the level of training of employees through participation in trainings, advanced training courses, certification;

9) the use of progressive methods of remuneration (bonuses for achieving and overfulfilling planned targets);

10) assisting suppliers and buyers to achieve lower cost levels (customer business development programs, seminars for dealers).

Author: Shepeleva A.Yu.

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