Increasing competition, combined with slow economic growth in almost all industries, is forcing firms to focus more efforts on the logistics activities of the enterprise. As a result, there is an increasing number of approaches to logistics control by means of evaluating the indicators of logistics activities. The use of systems for evaluating logistics indicators in a company solves such basic tasks as monitoring and controlling logistics operations and their operational management.

Monitoring indicators make it possible to trace the dynamics of the work of logistics systems in the past. These indicators include indicators of the level of service, elements of the structure of logistics costs, and many others.

Control metrics provide data on current performance. These indicators are necessary to adjust the logistics process in case of deviation from the established standards. An example of such indicators is tracking damage to goods during their delivery.

The purpose of the management indicators is to improve the quality of the work of the staff. An example of the use of such indicators is the introduction of piecework wages at the enterprise.

Key Performance Indicators (KPIs) are company performance indicators that help achieve strategic and tactical goals. The use of these indicators gives the company the opportunity to assess its condition and help in assessing the implementation of strategies.

A well-designed KPI system will enable a company to:

• - Carry out strategic planning of logistics and control the achievement of its goals.
• - Comprehensively evaluate the activities of logistics, based on the constant monitoring of the management analysis of the most significant aspects (general logistics costs, customer relations, productivity, product quality, and others).
• - Analyze internal business processes of the company.
• - Compare the dynamics of logistics indicators and evaluate the results achieved.
• - Identify the most important factors for the success of the company's logistics activities and focus on them.
• - Increase the speed of making logistics decisions based on the formulated priorities.

When developing and implementing a system of logistics indicators, each company should determine the scope of these indicators and their range. The range can vary from the overall process as a whole to individual logistics operations.

Estimated indicators in logistics are divided into external and internal. The internal performance evaluation system helps to compare past and current performance results with each other, as well as with the planned target standards. These internal evaluation indicators are often used by enterprises because the sources of information are well known and easy to collect. Internal logistics indicators are divided into:

a) costs.

The main reflection of the results of logistics activities is in the actual amount of costs associated with the implementation of actual tasks. The effectiveness of logistics activities can be judged by comparing the actual costs of the company with the past and expected. The value of logistics costs in the company, as a rule, is represented by the total amount of costs or costs per unit of production (unit costs). The main indicators of logistics costs used by enterprises are the indicators given in table 1 (see table 1)

Table 1 - Company cost KPIs

Name of indicator	Method of calculation
General logistics costs	The amount of costs associated with the implementation of logistics operations
Specific logistics costs	Total Costs / Quantity of Products Produced
Share of costs in sales	(Total cost / revenue) * 100
Costs of inbound and outbound deliveries per share of sales	(Sum of delivery costs / Revenue) * 100%
Warehouse costs per share of sales	(Warehousing costs / Revenue) * 100%
Administrative expenses per share of sales	(Administrative expenses / Revenue) * 100%
Labor costs per share of sales	(Salary of all employees of the company / Revenue) * 100%
Product profitability	(Profit / Revenue) * 100%
*Calculated according to Kazarina L.A. Logistics costs: problems of accounting and evaluation // Vestnik TSPU, No. 9 (72), 2007:

b) Customer service.

These internal indicators can be characterized as service indicators. They provide an opportunity to track the ability of the company to meet the needs and demands of consumers. These indicators include: (see table 2)

Table 2 - KPI of customer service of the company

Name of indicator	Method of calculation
Lost Sales	Effective demand presented by customers / actual sales in the period
Service level by product range	Number of items of goods / Number of maximum possible items
Upload errors	Number of shipping errors per year
Timeliness of delivery, %	(Quantity of Goods Delivered on Time/Total Quantity of Goods Delivered)*100%
Order Fulfillment Cycle Time	Lead time for one order
Number of claims from the consumer	Number of claims per year
*Calculated according to Kazarina L.A. Logistic costs: problems of accounting and evaluation // Vestnik TSPU, No. 9 (72), 2007

c) Asset management.

The subject of asset management assessment is the efficiency of the use of the company's capital. This capital is divided into invested in equipment and facilities and working capital (invested in stocks). The assessment of asset management makes it possible to trace the turnover rate of liquid assets, as well as the success with which fixed assets pay off the invested investments. The main such indicators include: (see table 3)

Table 3 - KPI of company asset management

Name of indicator	Method of calculation
inventory turnover	Consumption / Average balance
Inventory creation and maintenance costs	Storage costs + Order cost + Order cost
Stock of marketable products	Inventory at the end of the period / Sales forecast for the next period / Number of days in the period
Maturity of stocks	Sales volume in the period / Average inventory
stock capacity	Inventory balance at the beginning of the accounting period / turnover
Profitability of fixed assets	(Net profit / Value of fixed assets) * 100%
ROI	(Profit for the year / capital in operation) * 100%
*Calculated according to Kalnitsky A.A. Logistic costs in the reporting system of enterprises // Controlling. 2012.№ 5

d) Productivity.

Internal performance metrics are very important for any company. Productivity is defined as the ratio between the end result of the company's work and the amount of resources consumed to complete the order. Logistic performance indicators include those presented in table 4 (see table 4).

Table 4 - Product performance KPIs

e) Quality.

Qualitative indicators determine the effectiveness of not individual operations, but a set of them. It is difficult to measure qualitative indicators due to the heterogeneity of the evaluated transactions. Logistic quality indicators include: (see table 5)

Table 5 - Product quality KPIs

Thus, we can conclude that internal performance indicators characterize the effectiveness of the operations necessary to serve customers. Evaluation of these indicators and their comparison with the standards, as well as the results of previous years, is necessary to improve the efficiency of the company.

External estimates are used most often only by large logistics companies. These indicators are necessary for the study and identification of consumer expectations, as well as the development of best practices in other industries.

Since key performance indicators are measures of results and costs, they can be successfully used in a company to plan and control logistics activities. Before starting activities, the company develops planned KPI indicators. After the implementation of activities, the company must also measure the actual deviation of performance indicators from the planned one. If the company identifies serious deviations, it is worth analyzing the activities and developing a set of corrective measures.

Thus, we can conclude that logistics activities are very important for any company. As it was revealed, logistics for the company is a tool to increase competitiveness, the ability to reduce company costs, improve the quality of supporting processes, as well as increase the profitability of the organization's assets.

Indicators of logistics activity

Types of indicators of logistics activities

To maintain high competitiveness, the LC must constantly develop and improve. To do this, you need to have a way to determine the following points:

T.V. Alesinskaya

Fundamentals of logistics.

General issues of logistics management

Tutorial. Taganrog: Publishing house of TRUTH, 2005.

8. Indicators of logistics activity

8.1. Types of indicators of logistics activities

To maintain high competitiveness, the LC must constantly develop and improve. To do this, you need to have a way to determine the following points:
1) how well the LC is currently performing;
2) in what direction should the LC be improved;
3) how successful is the process of transformations of the LC in the chosen direction.

Answers to all these questions can be obtained by analyzing the indicators of logistics activities, tk. they reflect in a concise form the state of the functioning of logistics. Indicators can be direct or indirect, absolute or relative. Proxy indicators are often related to finances, such as profitability or payback period. On the one hand, financial indicators are easy to determine, look convincing, allow comparison of the results obtained, give an overall picture of the current state of drugs, and are popular. But at the same time, they have a number of significant drawbacks: they reflect past results, react slowly to changes, depend on a number of accounting techniques, do not take into account important aspects of logistics, and do not show specific problems and ways to eliminate them. Direct indicators are more suitable for analyzing the causes of the current situation and finding management decisions. These include: the weight of the delivered goods, the inventory turnover rate, the distance of the cargo transportation, the number of unfulfilled orders, the number of violations of the terms of delivery, etc.

Absolute indicators include single (for example, sales volume or availability) and total (balance sheet indicators, income and expenditure figures) indicators. Relative indicators are divided into specific (ratios of parameter values ​​to the total number of any objects), interconnected (ratios of different values ​​​​to each other), indices (ratios of homogeneous values ​​\u200b\u200bto each other, the denominator is the base value).

The most common performance indicators of supply chains include indicators characterizing the capacity of the LC and productivity.

LC power and power utilization factor

The power of the LC is not a given constant value, as it may seem at first glance, but really shows the efficiency of organizing the use of resources. The fact is that power, firstly, depends on the way resources are used, and secondly, it changes over time. For example, the professionalism or unprofessionalism of managers can respectively increase or decrease the throughput of an enterprise with the same available resources. In addition, during the working day, the efficiency of employees decreases, which leads to a decrease in capacity. In this regard, as mentioned earlier, design, effective and actual power are distinguished.

In addition to the absolute value of capacity, to analyze the effectiveness of logistics activities, the capacity utilization factor is used, showing the proportion of the design capacity actually used. For example, if a fleet of vehicles is designed to deliver 100 tons of materials per week, but actually delivers only 60 tons, then its capacity utilization rate is 60%.

Performance

This indicator is one of the most widely used. There are several types of performance:
· overall performance - the ratio of the total throughput to the total amount of resources used. Disadvantages: the use of monetary units of measurement to compare the numerator and denominator, which leads to dependence on accounting techniques; difficulties in accurately determining the values ​​for all the components used, especially intangible ones, such as the qualifications of employees, the state of the environment, the reputation of the company, etc.; the impossibility of highlighting the most important factors;
partial productivity - the ratio of the total throughput to the number of units of a particular resource used, namely
- equipment productivity: number of van trips; the weight of the cargo transported by the forklift; the distance the aircraft has flown;
- labor productivity: the number of product deliveries per employee; the number of tons transported per shift; the number of orders shipped per hour of work;
- productivity of capital: the number of stored products for each monetary unit of investment; the number of deliveries per unit of capital; throughput for every ruble invested in equipment;
- energy productivity: number of deliveries per liter of fuel; the volume of stored products per kilowatt-hour of electricity; value added for each unit of money spent per unit of energy.

Logistics costs

Logistics costs (costs) are the sum of all costs associated with the implementation of the LO: placing orders for the supply of products, purchasing, warehousing incoming products, intra-production transportation, intermediate storage, storage of GP, shipment, external transportation, as well as costs for personnel, equipment, premises , warehouse stocks, for the transfer of data on orders, stocks, deliveries.

The classification of logistics costs is shown in fig. 8.1.

Direct costs can be directly attributable to a product, service, order, or other specific vehicle. Indirect costs can only be charged directly to the media by performing auxiliary calculations.

Adjustable costs are costs that can be managed at the responsibility center (division) level. Unregulated costs - costs that cannot be influenced from the responsibility center, since these costs are regulated at the level of the company as a whole or in an external link (at another enterprise) of the LC.

Productive costs are the costs of work aimed at creating the added value that the consumer wants to have and for which he is willing to pay. Logistics maintenance costs do not in themselves create value, but they are necessary, such as the cost of transportation, ordering, checking employees, keeping records of products. Control costs are the costs of activities aimed at preventing undesirable results of customer service.



Rice. 8.1. Classification of logistics costs


Unprofitable costs - the cost of work that does not produce useful results (downtime, waiting). Opportunity costs (opportunity costs) characterize lost profits, the loss of profit from the fact that resources were used in a certain way, which excluded the use of another possible option. Partial costs are parts of the costs attributed to a specific product, order, field of activity, allocated according to certain criteria.

Actual costs - costs actually attributable to this object in the period under review, with the actual volume of orders being executed. Normal costs - the average costs attributable to a given object in the period under review, with the actual volume of service. Planned costs - costs calculated for a specific object and a specific period with a planned maintenance program and a given technology.


Other indicators

For each functional area of ​​logistics, specific indicators are distinguished, for example:
for procurement logistics - the cost of ordering, the cost of purchased materials, the amount of discounts received, the number of operations per employee, the number of errors, the number of regular suppliers, the reliability of the supplier, the possibility of unscheduled deliveries, the terms of payment for supplies, supplier ratings, the quality of the supplied products, etc. .;
for transport logistics - delivery reliability, total delivery time and total distance, delivery costs, customer satisfaction, frequency of service, number of losses and damages, time for loading and unloading, total weight moved, number of erroneous deliveries, dimensions and carrying capacity of rolling stock , professionalism of drivers, etc.;
For warehousing logistics - inventory turnover, average inventory volume, warehouse space utilization, share of orders satisfied from stocks, share of total demand satisfied from stocks, order lead time, order picking errors; the possibility of special storage conditions, etc.

8.2. Using Logistics Performance Indicators

8.2.1. Choice of indicators of logistics activity

There is a huge variety and number of indicators that do not have to be used all at once. When using indicators to assess the effectiveness of logistics activities, there is a problem of inconsistency between different indicators, which can give multidirectional results. For example, if a truck is traveling faster than usual, then the number of kilometers per hour of travel increases, but the number of kilometers per liter of fuel decreases; increasing the degree of automation of the warehouse increases labor productivity, but reduces the productivity of capital; an increase in the number of employees leads to an increase in effective capacity, but may reduce the capacity utilization factor, etc.

To solve this problem, it must be remembered that measuring performance is not the final task. Measurements only provide important information for the manager, on the basis of which he must draw a conclusion about how well the supply chain performs its tasks. Thus, it is necessary to choose indicators based on the goals and objectives that the organization has set for itself. If, for example, the task was set to maximize the speed of the MT moving through the LC in a short time, then managers should measure the speed of the MT and not worry too much about performance; if the goal is to minimize costs, then you need to use different cost indicators and worry less about workload. Sometimes managers ignore this approach, using those indicators that are easier to obtain or more convenient to use, that have been used before, or those that show the manager's work in a favorable light. This approach can lead to: hasty, poor-quality customer service, if the work is evaluated by the number of customers, and not by the quality of services, or, conversely, to long queues and indifference to customers, if the evaluation of the work is not made dependent on the total number of customers served; to freight or passenger transport rushing at high speed, if the work of drivers is accordingly estimated by the number of deliveries per day or is made strictly dependent on the schedule.

In order to realistically reflect the situation in the supply chain, the indicator should:
be related to the objectives of the supply chain;
· focus on significant factors;
be realistically measurable;
be objective;
be related to current rather than past results;
be comparable with other organizations and other time slices;
be understandable to all stakeholders;
· make it difficult to manipulate in order to obtain distorted data.

8.2.2. Comparison of logistics performance indicators

Logistics performance indicators help managers:
understand how well the set goals are being achieved;
compare current logistics performance with the past;
compare logistics in different organizations;
Compare the performance of different parts of the LC;
make decisions about investments and proposed changes;
measure the impact of changes on the supply chain;
· Identify areas for improvement.

The use of indicators, as a rule, makes sense only if they are compared with similar indicators of other enterprises or with the same indicators obtained for a different period of time. There are the following comparison methods:
1) comparison with absolute standards, i.e. ideal results that can be achieved at all;
2) comparison with targets uses difficult to implement, but realistic goals to achieve certain values ​​of indicators;
3) comparison with past achievements analyzes the results obtained in the past;
4) comparison with the standards of competitors (benchmarking) is based on the performance of the best competitors in the industry. Benchmarking can be external (comparing the performance of competitors) and internal (comparing the performance of individual divisions of the same organization).

In addition to the analysis of logistics performance indicators, there is an informal way to identify areas where improvements are needed: a survey of employees most closely associated with logistics, a mutual exchange of ideas. In this situation, valuable ideas and concrete proposals can be obtained.

8.3. Methods for estimating logistics costs and ways to optimize them

8.3.1. Features of cost accounting in logistics

End-to-end PM goes through many different departments, but traditional accounting methods calculate costs for individual functional areas, i.e. it is only known what the implementation of a particular function costs (Fig. 8.2, a). This does not allow allocating costs for individual logistics processes, generating information about the most significant costs and the nature of their interaction with each other.

Rice. 8.2. Traditional and logistical approaches to the cost accounting system

For example, to fulfill a customer's order, you need to carry out the following operations: order acceptance, order processing, credit check, paperwork, order picking, shipping, delivery, invoicing. Those. the costs associated with the order fulfillment process are made up of many costs that arise in different areas, and it is difficult to integrate them into a single expense item within the framework of functional accounting. In addition, traditionally, costs are combined into large aggregates, which does not allow for a detailed analysis of costs of various origins, to take into account in detail all the consequences of managerial decisions. As a result, decisions made in one functional area can lead to unforeseen results in other related areas.

In contrast to the traditional approach to cost accounting, logistics provides for the introduction of operational cost accounting along the entire path of the MT movement. In logistics, the key event, the object of analysis is the customer's order and actions to fulfill this order. Costing should allow you to determine whether a particular order is profitable and how you can reduce the cost of its implementation. Cost accounting by processes gives a clear picture of how the costs associated with customer service are formed, what is the share of each of the departments in them. By summing all costs horizontally, you can determine the costs associated with a particular process, order, service, product, etc. (Fig. 8.2, b).

The main attention should be paid to reducing costs, which occupy the largest shares in the sum of all logistics costs. As practice shows, the main components of logistics costs are transportation and procurement costs (up to 60%) and the cost of maintaining stocks (up to 35%).

Another feature of logistics costs is a sharp increase in their sensitivity to changes in the quality of work of drugs, which is illustrated in Fig. 8.3.




Rice. 8.3. Dependence of logistics costs on the quality of work of drugs

With the improvement of the quality of the work of drugs to a certain level, logistics costs grow linearly, and then exponentially. For example, if we want to increase the supply chain readiness from 78% to 79%, the cost of maintaining safety stock will have to increase by about 5%. If we decide to increase delivery readiness from 98% to 99% (also by 1%, but in the area of ​​high quality work), then this will require a 13% increase in costs.

Thus, the specifics of cost accounting in logistics are:
firstly, in the need to identify all the costs associated with specific logistics processes (the principle of total costs);
secondly, in the grouping of expenses not around the divisions of the enterprise, but around the work and operations that absorb resources.

The system for estimating logistics costs is needed only by logistics managers, who take it as the basis of PR. No rules or laws require accounting for process costs in financial statements. Differences in financial reports and reports on logistics costs are presented in Table. 8.1.


Comparison of logistics and financial reporting

Characteristic	Logistics cost report	Financial report
Users	Company management	Third Party Users
Goals	Optimization of MP, service flow and related flows	Administration control, provision of a tax base
Quality Criteria	Compliance with processes, suitability of logistics solutions	Auditable, Compliance with Instructions
Temporal aspect	Past, present and future	Past and present
Structure and content	Individual, tailored to each specific company, solutions, communications	Normalized by law and professional organizations
Degree of detail	Big	Lesser
Publicity	May contain information not disclosed to third parties	Contains information that is open to third parties

Requirements for the accounting system of logistics costs

Table 8.1

Requirements for the accounting system of logistics costs

1. It is necessary to allocate the costs that arise in the process of implementing each logistic function (see Fig. 8.2, a).
2. It is necessary to keep records of the costs of logistics processes to identify specific costs associated with one process, but arising in different departments (see Figure 8.2, b).
3. It is necessary to generate information about the most significant costs.
4. It is necessary to form information about the nature of the interaction of the most significant costs with each other.
5. It is necessary to determine the changes in costs, the costs caused by the rejection of this process.
6. In accordance with the principle of total costs, it is not enough to control only those costs that are formed within one enterprise, it is necessary to identify the costs of all participants in the LC and find out the mechanism of their formation and mutual conditionality.


8.3.2. Methods of analysis and ways to reduce the level of logistics costs

Logistics cost analysis rules

1. It is necessary to clearly define and justify the specific types of costs that should be included in the analysis scheme.
2. Cost centers are determined, i.e., functional areas of the business where significant costs are concentrated and where a reduction in their level can provide an increase in added value for the consumer.
3. Important points of cost concentration within each center of their concentration are identified, i.e. separate sections within one cost center.
4. Costs must be attributed to specific factors relevant to the evaluation of alternative actions and a decision criterion established.
5. All costs are considered as a single flow that accompanies a specific business process.
6. Cost should be considered as the amount paid by the consumer, and not as the amount of costs that arise within the enterprise as a legal entity.
7. Costs are classified according to characteristics and analyzed by any method, diagnostics of costs are made.
8. The process of estimating logistics costs depends on subjective judgments and decisions, since there are no unambiguous rules for determining which costs to include in the analysis and how to distribute them among different carriers.

Methods for analyzing logistics costs

1. Benchmarking the structure of logistics costs, which is also called a strategic analysis of logistics costs.
2. Cost analysis, which is based on the study of cost elements and aimed at reducing costs.
3. Functional cost analysis, which is 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.

Ways to reduce the level of logistics costs

1. Search and reduction of those activities (procedures, works, operations) that do not create added value by analyzing and revising the supply chain.
2. Negotiating with suppliers and buyers to establish lower selling and retail prices, trade allowances.
3. Assisting suppliers and buyers to achieve lower cost levels (customer business development programs, seminars for resellers).
4. Integration forward and backward to ensure control over total costs.
5. Search for cheaper resource substitutes.
6. Improving the coordination of the enterprise's activities with suppliers and consumers in the LC, for example, in the field of timely delivery of products, which reduces the cost of inventory management, storage, warehousing, and delivery.
7. Compensation for the growth of costs in one link of the LC by reducing costs in another link.
8. Use of progressive working methods to increase the productivity of employees.
9. Improved use of enterprise resources and more effective management of factors affecting the level of total costs.
10. Updating the most costly links of the LC when investing in a business.

8. Indicators of logistics activity

8.2. Using Logistics Performance Indicators

8.2.1. Choice of indicators of logistics activity

There is a huge variety and number of indicators that do not have to be used all at once. When using indicators to assess the effectiveness of logistics activities, there is a problem of inconsistency between different indicators, which can give multidirectional results. For example, if a truck is traveling faster than usual, then the number of kilometers per hour of travel increases, but the number of kilometers per liter of fuel decreases; increasing the degree of automation of the warehouse increases labor productivity, but reduces the productivity of capital; an increase in the number of employees leads to an increase in effective capacity, but may reduce the capacity utilization factor, etc.

To solve this problem, it must be remembered that measuring performance is not the final task. Measurements only provide important information for the manager, on the basis of which he must draw a conclusion about how well the supply chain performs its tasks. Thus, it is necessary to choose indicators based on the goals and objectives that the organization has set for itself. If, for example, the task was set to maximize the speed of the MT moving through the LC in a short time, then managers should measure the speed of the MT and not worry too much about performance; if the goal is to minimize costs, then you need to use different cost indicators and worry less about workload. Sometimes managers ignore this approach, using those indicators that are easier to obtain or more convenient to use, that have been used before, or those that show the manager's work in a favorable light. This approach can lead to: hasty, poor-quality customer service, if the work is evaluated by the number of customers, and not by the quality of services, or, conversely, to long queues and indifference to customers, if the evaluation of the work is not made dependent on the total number of customers served; to freight or passenger transport rushing at high speed, if the work of drivers is accordingly estimated by the number of deliveries per day or is made strictly dependent on the schedule.

In order to realistically reflect the situation in the supply chain, the indicator should:
be related to the objectives of the supply chain;
· focus on significant factors;
be realistically measurable;
be objective;
be related to current rather than past results;
be comparable with other organizations and other time slices;
be understandable to all stakeholders;
· make it difficult to manipulate in order to obtain distorted data.

8.2.2. Comparison of logistics performance indicators

Logistics performance indicators help managers:
understand how well the set goals are being achieved;
compare current logistics performance with the past;
compare logistics in different organizations;
Compare the performance of different parts of the LC;
make decisions about investments and proposed changes;
measure the impact of changes on the supply chain;
· Identify areas for improvement.

The use of indicators, as a rule, makes sense only if they are compared with similar indicators of other enterprises or with the same indicators obtained for a different period of time. There are the following comparison methods:
1) comparison with absolute standards , i.e. ideal results that can be achieved at all;
2) comparison with targets uses hard-to-implement, but realistic goals to achieve certain values ​​of indicators;
3) comparison with past achievements analyzes the results obtained in the past;
4) comparison with competitors' standards (benchmarking) is based on the best competitors in the industry. Benchmarking can be external (comparing the performance of competitors) and internal (comparing the performance of individual divisions of the same organization).

Any business organization, introducing logistics and forming a logistics system corresponding to its goals, first of all seeks to evaluate its actual or potential effectiveness.

During the development of logistics in industrialized countries, a system of indicators has been formed that generally evaluates its efficiency and effectiveness, which usually include:

• general logistics costs;
• quality of logistics service;
• duration of logistics cycles;
• performance;
• return on investment in logistics infrastructure.

These indicators can be called key or complex performance indicators of the logistics system. They underlie the reporting forms of companies and systems of indicators of logistics plans of different levels. There are generally accepted procedures for comparative evaluation of firms (benchmarking) in the field of logistics based on analytical and expert methods using these complex indicators.

Thus, the key / complex indicators of the efficiency of the logistics system are the main indicators of the efficiency of the use of resources in the company for the formed logistics system, in a complex evaluating the effectiveness of logistics management and being the basis of logistics planning, accounting and control.

Let us consider a brief description of complex indicators.

General logistics costs are the total costs associated with the complex of functional logistics management and logistics administration in the logistics system.

As part of the total logistics costs, the following main groups of costs can be distinguished:

• costs for the performance of logistics operations / functions (operational, operational logistics costs);
• damages from logistical risks;
• logistics administration costs.

Most reporting forms on the implementation of the logistics plan contain indicators of logistics costs, grouped by functional areas of logistics, such as costs in material management, costs of physical distribution operations, etc., and within these areas by logistics functions. Generally accepted in Western business are the allocation and accounting of costs for transportation, warehousing, cargo handling, inventory management, order management, information and computer support, etc.

Often, to solve the problems of optimizing the structure or management in the logistics system, the total logistics costs take into account the loss of profit from freezing (immobilization) of products in stocks, as well as damage from logistics risks or poor quality of logistics services. This damage is usually assessed as a possible decrease in sales, reduction in market share, loss of profit, etc.

An analysis of the structure of logistics costs in various industries of economically developed countries shows that the largest share in them is occupied by the costs of:

• inventory management (20-40%);
• transportation costs (15-35%);
• expenses for administrative and managerial functions (9-14%).

Over the past decade, there has been a noticeable increase in the logistics costs of many Western companies for such logistics functions as transportation, order processing, information and computer support, as well as for logistics administration.

Renowned American logistics consultant Herbert W. Davis has for several years tracked logistics costs in the US industry for warehousing, shipping, order management/customer service, distribution management, and inventory management as an integral part of the final price of products and customer service. In 2007, for example, the structure of logistics costs, expressed in shares (%) of sales, was as follows: transportation of finished products - 4.08%; warehousing - 2.40; customer service/order management - 0.55; distribution management - 0.36; inventory storage cost (at 18% discount rate) - 1.81% - total 9.02%. Cost structure (in dollars per hundred pounds of product weight): transportation of finished products - 13.24; warehousing - 10.79; customer service / order management - 4.07; distribution management - 2.53; and the cost of holding inventories at an 18% discount rate of 18.13. The total amount was 47.48.

Analysis of logistics costs by Western companies is usually carried out as a percentage of standard, volume or resource indicators, for example:

• logistics costs in relation to sales volume;
• individual components of logistics costs in relation to total costs;
• the logistical costs of the firm in relation to the standards or average level in the industry;
• logistical costs in relation to the corresponding items of the firm's budget;
• current budget logistics resources in relation to projected costs.

The listed indicators are often included in the reporting forms on logistics productivity (productivity), focusing on the efficiency of using the company's financial resources.

The use of total logistics costs as a key indicator in the formation of a logistics strategy in domestic business encounters a number of difficulties caused by the following main reasons:

• the inability of the current system of accounting and statistical reporting of enterprises to single out many components of logistics costs;
• the presence in the domestic business of "double" accounting, "black cash", the secrecy of financial information for partners in the logistics system and even between structural divisions within the company, etc.;
• lack of methods for calculating damages from logistical risks, etc. The concept of the quality of a logistics service is based on the standardized terms "service" and "service".

Essentially, the vast majority of logistics operations/functions are services, so a logistics service can be defined as the process of providing logistics services(as a result of the performance of the relevant operations or functions) to internal or external consumers.

Intermediaries operating in the logistics system are mainly service enterprises in which services are inextricably linked with a product that is distributed, promoted and sold in various parts of the logistics network. Such links include various transport companies, forwarders, wholesalers and retailers, warehouses, terminals, customs brokers, insurance companies, etc. At the same time, the cost of logistics services can significantly exceed the costs directly for the production of products.

Despite the importance of logistics services for the implementation of corporate strategies, so far there are no effective ways to assess its quality, which is explained by a number of features of the characteristics of the service in comparison with the characteristics of the products. These features are:

1. Service intangibility. It is difficult for service providers to explain and specify types of service, and it is also difficult for buyers to evaluate them.
2. The buyer is often directly involved in the production of services.
3. Services are consumed at the moment they are produced, i.e. services are not stored or transported.
4. The buyer never becomes the owner by purchasing services.
5. A service is an activity and therefore cannot be tested before the customer buys it.

These characteristics and features of services play an important role in the logistics process. It is very important to take into account the fact that the quality of service in logistics is manifested at the moment when service provider and customer meet. The measurement of the quality of service in the analysis and design of the logistics system should be based on the criteria used by the buyers of logistics services for these purposes. When the buyer evaluates the quality of a logistics service, he compares some actual values ​​of the "measurement parameters" of quality with the expected values ​​of these parameters, and if these expectations match, then the quality is considered satisfactory.

With regard to logistics service, in our opinion, it is more appropriate to define quality as “the degree of discrepancy between the expectations of customers and their perception of such criteria as reality, reliability, responsiveness, competence, courtesy, trust, safety, sociability, understanding of the customer. Accordingly, those companies in which the client feels the fullest presence of these characteristics, he perceives as companies with the highest quality.

The most important components (parameters) of the measurement service quality:

• tangibility - the physical environment in which the service, amenities, office equipment, equipment, type of personnel, etc. are presented;
• reliability - "just in time" execution, i.e., for example, in physical distribution, the delivery of the right product at the right time to the right place. Reliability of information and financial procedures accompanying physical distribution;
• responsibility- desire to help the buyer, guarantees of service performance;
• completeness - the presence of the required skills, competence, knowledge;
• availability - ease of establishing contacts with service providers, convenient time for the buyer to provide logistics services;
• security - the absence of danger, risk, distrust (for example, the safety of cargo during transportation);
• courtesy - the behavior of the service provider, the correctness of the staff;
• sociability- the ability to speak in a language understandable to the buyer;
• rapport with the buyer- sincere interest in the buyer, the ability to understand his needs (requirements).

The specification of the quality parameters of a logistics service and the choice of methods (methods) for their assessment and control are perhaps the most difficult issues in logistics administration.

The most important comprehensive indicator of the effectiveness of the logistics system is duration of the full logistics cycle- time of execution of the order of the consumer (buyer). The use of this indicator (or its individual components) is due to the requirements of the corporate strategy, if time is chosen as the main factor in increasing the competitiveness of the company.

Complex indicator - performance (efficiency) of the logistics system- is determined by the volume of logistics work (services) performed by technical means, technological equipment or personnel involved in the logistics system per unit of time, or by the specific consumption of resources in the logistics system.

In most foreign firms with logistics services, special reports on logistics performance / productivity are compiled, which reflect a fairly large number of indicators, for example:

• the number of processed orders per unit of time;
• freight shipments per unit of storage capacity and cargo capacity of vehicles;
• relation of the "input-output" type to reflect the dynamics of output and workflow;
• the ratio of operating logistics costs per unit of invested capital;
• the ratio of logistics costs per unit of output;
• logistics costs in distribution per unit of sales volume, etc.

As can be seen from the above list, if productivity is measured by the volume of work of personnel or equipment per unit of time (or by specific parameters of technological equipment, vehicles, or per unit area, volume, etc.), then performance is characterized mainly by the specific costs of financial resources in the logistics system.

As indicators vehicle efficiency can, for example, serve as the coefficient of utilization of the carrying capacity (cargo capacity) of the vehicle, the volume of traffic or the freight turnover of the rolling stock of transport per hour (shift, day), the freight turnover per 1 ton of the carrying capacity of the vehicle, etc. To assess the effectiveness of the use of warehouse handling equipment, an indicator of the volume of cargo handling per unit of time can be used.

Performance indicators can be applied to infrastructure logistics units of the logistics system as a whole. For example, a general indicator of warehouse productivity can be warehouse turnover per day, etc.

In foreign practice of logistics management, in most cases, performance and productivity (performance) indicators are not separated. The indicator "logistical performance" in its meaning is more consistent with the indicator "resource return" adopted in our economy, it characterizes the specific consumption of financial, material, energy, labor resources in relation to volumetric or other planned indicators.

Complex indicator - return on investment in logistics infrastructure- characterizes the effectiveness of investments in the logistics system infrastructure units, which currently include:

• warehousing (warehouses of various types and purposes, cargo terminals and terminal complexes);
• transport divisions of various types of transport;
• transport communications (roads and railways, railway sidings, etc.);
• repair and support units serving the transport and storage facilities;
• telecommunication system;
• information and computer system (complex of technical means and office equipment).

The return on investment in the listed logistics infrastructure facilities is determined in accordance with the current regulatory and methodological documents for assessing the effectiveness of capital investments.

Logistics cost analysis and control

When analyzing the total logistics costs, it is customary to pay special attention to inventory management and transportation. The total cost of maintaining stocks per year is typically approximately 25% of their value. Of course, they need to be minimized.

Should be distinguished cost minimization from inventory minimization. The total cost of inventory is divided into four separate components:

1. Unit cost, or the cost to the firm of acquiring that unit.
2. Order cost, or the cost of placing a reorder unit. May include costs for order preparation, placement, acceptance, unloading, inspection, testing, use of equipment. In practice, the best cost estimate is obtained by dividing the total annual cost of the purchasing department by the number of orders it has shipped.
3. Storage costs, or the cost of keeping a unit in stock for a set period of time, is 19-35% of the annual cost.
4. Shortage costs. Appear when a product is needed but cannot be supplied from stock. The impact of shortages is broader than lost profits, as it includes loss of image, loss of reputation, and potential losses from lower sales in the future. Costs of this kind may also include payments for actions aimed at reducing the shortage: forwarding, sending an urgent order, paying for the delivery of special types of products, using the services of more expensive suppliers. Most firms believe that shortages are always costly and therefore try to avoid them. In other words, they are willing to pay relatively little to maintain inventory in order to avoid the relatively high costs associated with shortages.

Inventory holding costs, unlike other elements of logistics costs, such as transportation or storage costs, usually included in a company's income statement, are not as obvious. At the same time, the reserves themselves are presented in the assets section of the balance sheet. The main element of inventory holding costs is capital invested in them. For example, having $105,000 worth of reserves means that this money cannot be invested in other valuables. In other words, the specified amount must either be borrowed to finance working capital, or deducted from retained earnings. In the first case, the company will have to pay interest on the loan. In the second, she will not be able to invest them as part of retained earnings in other investment projects.

Arbitrary decisions are inevitable in determining the relative value of a company's inventory holding costs. Some firms set this figure at 12%, justifying their decision by saying that the corresponding cost of capital is theirs. internal costs. Others set this figure at 40%, while stating that capital fee invested in reserves should be the same as for capital invested in other projects. The consequences of each of these decisions may be different.

Relatively low inventory holding costs reduce the importance of inventory and make it relatively more important fare. As a result, a strategy based on total logistics costs will focus on minimizing transport costs by increasing the number of distribution centers that keep goods closer to markets. Appearance additional warehouses increases inventory requirements because each warehouse needs safety stock. Thus, a low share of inventory costs turns into a strategy in which expensive means of transportation give way to relatively cheaper means of storing inventory. And vice versa: a relatively high proportion of inventory costs turns the logistics strategy in the opposite direction, i.e., leads to the centralization of stocks in a few warehouses and a corresponding increase in the range of cargo transportation with an increase in transportation costs.

In order to optimize the level of logistics costs of a trading company, it is necessary to carry out detailed analysis for allocation of logistics costs. This analysis is necessary due to the following:

• often the costs of performing logistics functions are accounted for separately, in the budgets of different departments, which leads to a decrease in the actual volume of logistics costs in the eyes of the company's management;
• in a situation where the company operates in several market segments, logistics costs are often allocated to the largest of the segments, which distorts the real picture of the profitability of various market segments.

All costs of the company must be spread across several (no more than ten) main areas of activity, some of which are conditionally considered as profit centers, and the rest - as cost centers. After identifying these areas, it seems necessary to solve the following tasks:

• Determine the share of logistics costs attributable to regional sales and sales outside the given region. This process is necessary to determine the profitability of each of the geographic markets that the company serves.
• Determine the proportion of logistics costs attributable to each of the sales channels(dealer, active and retail sales). After carrying out this operation, it will be possible to compare the profitability of product sales through each of the channels and select the most and least priority distribution channels.
• Determine the proportion of logistics costs attributable to each product group. This will allow you to find out the true profitability of each of the product groups and determine the most highly profitable segments of the assortment.

When designing a logistics system, it is important to strike a balance between the basic level of service that the company intends to offer consumers and the transaction costs necessary to meet established target standards.

To assess the work of logistics, it is proposed to use the following groups of indicators:

1. The first group: indicators characterizing the intensity of the warehouse:

1.1. Indicators characterizing the labor intensity of work:

• Warehouse turnover total = the number of all items received and sent / the analyzed period of time (day, month, year).
• Warehouse turnover upon arrival = number of arrived positions / analyzed time period (day, month, year).
• Warehouse turnover by departure = number of items shipped / analyzed time period (day, month, year).
• Specific warehouse turnover = total warehouse turnover / warehouse area.
• Warehouse load unevenness coefficient = turnover of the busiest month / average monthly warehouse turnover.
• Storage indicator = number of items in stock x number of days of storage.
• The number of processed applications (for shipment and acceptance) per unit of time.

1.2. Indicators characterizing the intensity of the passage of goods through the warehouse.

1.3. The turnover ratio of goods in the warehouse \u003d total turnover of the warehouse / number of items stored in the warehouse.

2. The second group: indicators characterizing the efficiency of the use of warehouse space:

2.1. Warehouse capacity \u003d number of goods in a cubic meter. m, which can simultaneously accommodate a warehouse.

2.2. Usable warehouse area = warehouse capacity / stacking height of goods.

2.3. Warehouse capacity utilization ratio = quantity of goods per cubic meter. m in the analyzed period / storage capacity.

2.4. Warehouse traffic density = number of commodity items / useful warehouse area.

3. The third group: indicators characterizing the level product safety and financial performance warehouse work:

3.1. The number of cases of non-preservation and damage to goods due to the fault of warehouse workers.

3.2. Warehouse costs = the amount of costs for organizing the storage of goods.

3.3. Cost of goods storage = warehouse costs / storage rate.

3.4. Labor productivity of warehouse workers = warehouse turnover in the analyzed period / number of warehouse workers.

3.5. Output per warehouse worker = cost of goods processed by him per unit of time.

3.6. Inventory turnover ratio by value \u003d cost of goods shipped in the analyzed period / average cost of inventory in the same period.

3.7. Illiquid ratio = stock of illiquid goods by value / total stock by value x 100%.

4. Fourth group: warehouse service quality and consumer satisfaction:

4.1. Ensuring the fulfillment of requests for shipment exactly by the specified time.

4.2. Completeness of satisfaction of requests for shipment = completed number of requests / total number of requests.

4.3. Errors in the execution of requests for shipment.

4.4. Consumer complaints.

4.5. Customers' assessment of the degree of satisfaction with the service.

Control over logistics costs

Controlling costs through pre-set targets and flexible budgets is the most advanced type of control system currently available. A standard can be defined as a standard against which indicators are measured; i.e., standard costs are the costs that a company incurs if it operates efficiently.

The costs of various types of logistics activities can be reported to the heads of functional departments, product groups, and also compared with standard costs and included in weekly or monthly activity reports.

Most logistics budgets are static in nature, i.e. they act as a plan based on the budgeted level of production. If actual activities are carried out at the level of the budget, managers can make realistic cost comparisons and control effectively. However, in reality this rarely happens. Seasonal or other factors almost always inevitably lead to different levels of performance, the effectiveness of which can only be determined if the accounting system can compare actual costs with what they should be.

For example, a company's warehouse division might be set with an expected or budgeted activity level of 10,000 items per week, although the actual level might be only 7,500. to the erroneous conclusion that operations are running efficiently because items such as after hours, hiring temporary workers, packaging, postage, and order processing were less than budgeted. Conversely, a flexible budget indicates that costs should be at the level of 7500 units and that real costs should be shown in monetary terms. The key to successful implementation of a flexible budget policy is to analyze the types of cost dynamics. However, in most companies, such an analysis in relation to logistics functions is rarely carried out. However, when using tools such as scatterplots and regression analysis to determine fixed and variable cost components, historical cost data are used to determine the variable component per unit of activity and total fixed costs.

The main criterion for evaluating the effectiveness of the logistics system is the amount of logistics costs in the supply chain. Of course, it does not take into account the dynamics of all processes occurring in the system, taking into account existing connections, but it reflects the effectiveness of the implementation of the main task of logistics - the optimization of all logistics costs.

This parameter reflects the amount of profit generated during the passage of the material flow through the supply chain.

Any of the logistics operations carries certain costs.

An analysis of the effectiveness of logistics activities can be carried out by correlating the profits received and the losses incurred in the supply chain. The main criteria for evaluating the effectiveness include the following data:

General logistics costs

The level of quality of logistics service

Aggregate Organizational Productivity

Cumulative duration of the logistics operation

The quality of the logistics activities carried out and the level of logistics services

These criteria are the basis for operational, tactical and strategic planning in the enterprise.

Total logistics costs are the sum of the costs incurred in the management and implementation of each logistics operation and each logistics process that make up the logistics activities of the system. The total costs can be divided by the area of ​​their occurrence:

Internal and external operating costs

Logistics system administration costs

Costs associated with logistical risks

Also, logistics costs can be classified by functional areas:

Fare

Warehouse costs

Shipping costs

Inventory management costs

Order management costs

Costs of operating automated systems

Costs for the formation and maintenance of stocks of raw materials and materials

Costs for the maintenance and sale of finished products

However, the main, more significant costs are the costs of inventory management and transportation costs.

The next criterion for evaluating the effectiveness of the logistics system is the quality indicator of the logistics service provided.

Since the quality of the logistics service can only be assessed in the process of its provision, there are problems with assessing the quality of the services provided. Therefore, quality is mainly determined by assessing the satisfaction of consumer expectations. Typically, the criteria for evaluation are the following parameters:

Correspondence of the terms of the provision of services with the terms declared by the client

Guarantees for the services provided

Complete fulfillment of contractual obligations

Ease of establishing contact with the service provider

Correctness of personnel in the provision of services

Another criterion for evaluating the effectiveness of the logistics system is the duration of logistics processes. It is about the total lead time.

The overall performance of the system is evaluated using some criteria:

The number of satisfied applications for a certain period

Freight shipments per unit of storage capacity and cargo capacity of vehicles

The ratio of logistics costs per unit of invested funds

The ratio of logistics costs per unit of product produced

The next indicator of the effectiveness of the functioning of the logistics system is the indicator - return on investment in the logistics infrastructure. Reflects the effectiveness of investments in logistics units, such as:

warehousing (warehouses of various types and purposes, cargo ter and terminal complexes);

transport divisions of various types of transport;

transport communications (roads and railways, railway sidings, etc.);

repair and support units serving the transport and storage facilities;

telecommunications system

information and computer system

In general, to evaluate the effectiveness of a logistics system, it is necessary to evaluate it as an integral organism, with functioning links both within the system and outside it. Based on this, the system should be considered as a system with effective feedback, Figure 6.

Figure 6 - Logistics system with effective feedback

Therefore, the efficiency of the logistics system is reflected in the availability of stocks, productivity, the quality of the logistics service provided, as well as the effectiveness of investments in the infrastructure of the system.