Abstract

Logistics cost management is associated with certain specific challenges, since increasing the quality of logistics services for customers often comes with increased logistics costs. In addition, reducing the costs of one logistic component causes an increase in the costs of another logistic component, which results in higher total logistics costs. Various cost models have been developed to support the optimisation of logistics activities, which represent the main focus of research and a key practical tool for logistics management. The purpose of the study is therefore to determine whether current scientific studies are addressing the issues related to logistics cost management. The aim of the study is to determine the scope of the optimisation of individual logistics models from the point of view of how individual logistics costs categories and processes are treated. The analysis of logistics costs management issues provides an important empirical foundation for the improvement of logistic processes in supply chains and synthesises scientific literature in the field of logistics cost modelling, which represents an important framework for future empirical studies.

Highlights

  • Logistics costs account for most of the costs in the supply chain of a company and cover a significant share in the overall cost structure of the company

  • The aim of the study is to determine the scope of the optimisation of individual logistics models from the point of view of how individual logistics costs categories and processes are treated

  • The aim of the study is to determine the scope of the optimisation of individual logistics models from the point of view of how individual logistics costs and processes are treated

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Summary

Introduction

Logistics costs account for most of the costs in the supply chain of a company and cover a significant share in the overall cost structure of the company. The complexity of logistics costs management is a result of several key factors that are present both in theory and practice. A higher level of service in logistics potentially leads to greater customer (buyer) satisfaction, but at the same time, it leads to higher costs. This results in the necessity to achieve a balance between the quality of logistics services and the level of logistics costs. The key factor relates to the difficulty of measuring logistic costs, as they are present in various business areas, such as sales, purchasing, manufacture and logistics. Logistics processes should be measured in order to ensure that they are controlled effectively

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