LOGISTICS OPERATIONS AND ANALYZING LOGISTICS COSTS IN THE ACCOUNTING PROCESS (LOJİSTİK FAALİYETLER VE MUHASEBE SÜRECİ İÇERİSİNDE LOJİSTİK MALİYET UNSURLARININ İNCELENMESİ)
Author :
DOI : 10.31576/smryj.1206
Year-Number: 2021-54
Language : null
Konu :
Abstract
In the global competition environment, one of the main components of competitiveness is the logistics activities. Logistics is the process of ensuring the flow and storage of all kinds of products, services and information flow in the supply chain from the starting point of the raw material to the endpoint where the product is consumed, ensuring the efficient and efficient flow and storage of the products. As a result of globalization, the costs of logistics activities have also increased due to changes in the quality and quantity of logistics activities. Global competition has forced businesses to cut costs, which has given them a competitive advantage. The purpose of this study is to explain the logistics costs and structure, and to provide explanatory information about the purpose of logistics cost management which is a cost reduction tool.
Küresel rekabet ortamında, işletmeler açısından rekabet edilebilirliğin temel bileşenlerinden bir tanesi de lojistik faaliyetlerdir. Lojistik, müşterilerin ihtiyaçlarını karşılamak üzere her türlü ürün, hizmet ve bilgi akışının, hammaddenin başlangıç noktasından, ürünün tüketildiği son noktaya kadar olan tedarik zinciri içindeki hareketinin, etkin ve verimli bir şekilde akış ve depolanmasının sağlanması, kontrol altına alınması ve planlanması sürecidir. Küreselleşmenin bir sonucu olarak lojistik faaliyetlerinin nitelik ve niceliğinde meydana gelen değişikliklere bağlı olarak lojistik faaliyetlerin maliyetleri de artmıştır. Küresel rekabet ortamı işletmeleri maliyetleri düşürmeye zorlamış bu da işletmelere rekabet avantajı kazandırmıştır. Bu çalışmanın amacı lojistik faaliyetler ve bu faaliyetlerin kapsamını açıklayarak, lojistik maliyet unsurları hakkında açıklayıcı bilgi vermektir.
Keywords
Abstract
In the global competition environment, one of the main components of competitiveness is the logistics activities. Logistics is the process of ensuring the flow and storage of all kinds of products, services and information flow in the supply chain from the starting point of the raw material to the endpoint where the product is consumed, ensuring the efficient and efficient flow and storage of the products. As a result of globalization, the costs of logistics activities have also increased due to changes in the quality and quantity of logistics activities. Global competition has forced businesses to cut costs, which has given them a competitive advantage. The purpose of this study is to explain the logistics costs and structure, and to provide explanatory information about the purpose of logistics cost management which is a cost reduction tool.
Keywords
- Havenga (2010) proposes the first basic macroeconomic logistics indicators for South Africa. The researchshows that South Africa's logistics costs are above the global average. Much of these costs can be attributed to road transport, where the biggest cost driver is fuel oil, which is determined by volatile oil prices.
- Bokor (2012) aims to explore ways to improve the cost calculation regimes of logistics service providers andshow how to adopt a multi-level full cost allocation technique in logistics practice. According to the results, the improved costing model contributes to more accurate and transparent logistics costing.
- In Zwierzyński's (2018) study, logistics cost was defined and the relevant literature was searched. Accordingto the author, the analysis of costs in the company is very important in the context of achievable results. Thedivision of costs, their accounting, selection of an appropriate change cost accounting and analysis of theresults should determine the source of information on the profitability of individual articles or services approved by individuals.
- Škerlič and Sokolovskij (2019) develop a model that focuses on managing logistics costs at all stages of aproduct's lifecycle. The model includes several different cost components and covers individual processesmore broadly as logistics costs exist in different areas of a company's operations. The feasibility of theproposed method has been tested in a multinational company that manufactures furniture fixtures on arandomly selected product. The test results provide a theoretical and practical confirmation of the need tomanage logistics costs for an individual product, as other models focus only on the cost optimization of individual logistics processes.
- Kahveci and Okutmuş (2019), using TDABC method in a logistics cargo company, activities for generalexpenses were calculated and idle capacity was determined. The difference between the theoretical andactual capacities of the activities is measured by the theory of constraints method and it is determined thatthere is a constraint in the transfer activity. By removing the constraint on the transfer activity, not onlyefficiency was achieved, but also new theoretical capacities, which were revealed with the help of a table, were calculated.
- Hai and Son (2019) examines the impact of logistics service on the financial performance of firms in thetextile industry in Vietnam. As a result of the study, it has been determined that supply logistics, productionlogistics, support activities and logistics costs are positively related to the financial performance of thecompanies. In addition, it has been concluded that the most important factor affecting the financial performance of companies operating in the textile sector is logistics costs.
- Banomyong et al. (2021) develop an approach to calculate national logistics cost per gross domestic productin the context of Thailand and demonstrates its veracity and validity using an action research methodologywith key stakeholders. The approach uses readily available macro-level data combined with survey data. Thecalculation method has gradually improved in terms of accuracy and efficiency to reflect Thailand's logisticscontext. The proposed approach adds to the national logistics cost debate and can inform academics,managers and policy makers as they develop their own NLC/GDP to evaluate their logistics development activities not only in Thailand but also in other countries.
- İrak ve Şen (2021) examined how companies affect their performance and export performance in both thedomestic and foreign markets when they manage their logistics performance and logistics costs effectively.According to the results of the road analysis made in the study; It has been found that logistics performanceaccounts for approximately 30 percent of the change in non-financial performance, 5.5 percent of the changein logistics performance on financial performance, 7.3 percent of the change in logistics performance on export performance, and logistics costs about 10 percent of the change in logistics performance.
- The concept of logistics is of Greek origin and derives from the word “logistikos”, which means calculation,book science, and skill in the account. It was first recognized in 1840 by the French Academy as"logistique", which means that it combines and coordinates modes of transport. Logistics, which has foundmore widespread use as a military term, can be defined as planning, organizing, carrying out transportationand storage operations, running this process at an efficient and optimal level in order to help increase the general welfare level of the society in the long term (Çancı ve Erdal, 2003: 86).
- The word logistics was first used in 1905 with the word "army". During World War II, the armies started touse the new forms of logistics to analyze their systems to ensure that the materials they needed were at the desired location (Baki, 2004: 8).
- According to Christopher (1998), it is defined as planning and control of all activities that deliver product orservice at the lowest cost and highest quality level in logistics (Christopher, 1998: 13). According to anotherdefinition made by the Istanbul Chamber of Commerce (İTO), logistics, the raw materials, materials, stocksin the process, the final products and information that have completed the production process, from theorigin point to the final consumption point, can be effectively and minimized. It is defined as the planning,execution and control process for delivering to the desired place, in the desired amount, at the desired time, at the desired time (İTO, 2006).
- Logistics according to the current Turkish dictionary of the Turkish Language Society (TDK); it is expressedas the effective and efficient planning and implementation of the transportation of all kinds of products,services and information flows from the point of departure to the destination point to meet the needs ofindividuals (TDK, 2018). Logistics Association (LODER) defines logistics as being undertaken by severallogistics companies specialized in their supply chain (at least three different activities (eg storage,transportation and stock management) consecutively (LODER, 2018). Another definition related to logisticshas been made by the International Logistics Association (SOLE) as follows: Logistics, ensuring the efficientuse of resources, taking into account the logistic elements, ensuring the effect of resource inputs on thesystem in a timely manner throughout the entire life cycle of the product. It is the management support area used for the entire life of the product or system created to contain it (SOLE, 2018).
- The most accepted definition of logistics today is made by the Council of Supply Chain Professionals(CSCMP). According to this definition; To meet customer needs, the effective and efficient planning,implementation, transportation, storage and control of the movement of service and information flow from the starting point (source) to the end-point (to the end consumer) (CSCMP, 2018 )
- Logistics; It is a whole of activities carried out in the supply chain, including storage. In other words, itcovers the interrelated and coordinated functions that are carried out during the distribution process such astransportation, storage, distribution, and inventory management and provide added value to the product. Inthis case, it can be said that a process should be managed for logistics (Küçük, 2016: 33). In short, logistics isa group of activities consisting of a wide range of fields and requires the cooperation of the relevant departments (Çancı & Erdal, 2003, 35-37; Şen, 2014: 85-87):
- Logistics focuses on the availability of products and services when they need them, anywhere in the world,twenty-four hours a day, seven days a week, fifty-two weeks a year. Without logistics; It is impossible tosucceed in marketing, production and international trade. Logistics competence is of great importance indeveloped industrial societies. Consumers expect the products they purchase to be delivered as promised (Karacan & Kaya, 2011: 9).
- Enterprises have not been able to realize how important the logistical function is for their contribution toorganizational performance for a long time. It is generally systematically linked to activities such as logistics,transportation, warehouse, loading and unloading, packaging, distribution processes and information management (Wen and Gu, 2014: 878; Akandere, 2019: 739).
- Logistics costs are a concept used to express all the costs incurred due to logistics activities and can bedefined as the monetary amount of the sacrifices that businesses incur for logistics activities (Tokay et al.,2011: 227).Taking part in the logistics process; The sacrifices incurred for transportation, storage, stockmanagement, handling (loading-unloading), order processing, packaging, purchasing and information management activities are expressed as logistics costs (Ceran and Alagöz, 2007: 157).
- One of the strategies for success in today's competitive conditions is cost leadership. For a company to beadvantageous over its competitors, a good cost control is required. In this control system, the position in thecosts of an enterprise relative to its competitors is measured by the costs collected in the value chain. Costdata has a very important place for businesses with its operational, strategic and financial contents. Manyfactors have changed the cost structures of businesses and this has led to the need for more advanced cost techniques (Gökçen, 2003: 68).
- Logistics costs arise due to many logistics activities and the share of these costs in total operating costs isgradually increasing. The highest cost among the total logistics costs is the costs related to the transportationactivities. This makes transport activities important in logistics activities. Because the transportationactivities directly affect the total logistics costs and also affect the speed factor in the logistics triangle consisting of speed, quality and cost (Tokay et al., 2011: 228).
- Logistics costs should never be considered merely as the costs of the logistics department. These costs occurin marketing, sales and distribution, management, production and supply, more precisely in all function areasof the business.14 Logistics costs are inversely proportional to sales, and logistics costs decrease as sales increases (Hacırüstemoğlu and Şakrak, 2002: 96).
- Logistics costs are significant due to the uncertainty of the sector. It can be classified as tangible andintangible costs. Logistics A firm operating in the sector is known and predicted in the sector beforehand.against these costs as it will face significant logistics costs. is in a prepared state. However, due to thevariability of the industry or customer demands. uncertain due to its variability and predicted when it will beencountered. There are also unexplainable costs. Against uncertain costs vulnerable logistics companieslogistics to keep costs under control and to manage costs. They prefer to cluster in villages (Bezirci and Dündar, 2009:298).
- Logistics costs are presented with different indicators such as a share in sales and output, the absolute valueof shares and costs in GDP (Rantasila and Ojala, 2012: 9). In the process from production point toconsumption point, the ratio of logistics costs within the total costs reflects the absolute value of logisticscosts. The share of logistics costs in GDP is often used as an evaluation and comparison criterion forcountries. The rate of logistics costs in sales and output is preferred for the measurement of the costs causedby logistics activities in the production and distribution process for businesses (Bayraktutan and Özbilgin, 2015: 97).
- In order to analyze logistics costs and use them in some decisions, these costs must first be made easilytraceable and properly classified using appropriate accounts. While differentiating expense places andexpense types in cost accounts, it will be easier to record the expenses related to logistics activities in sub-accounts expressed in the same codes, to analyze and use logistic expenses in decision making. In terms oflogistics, the necessary control over costs, obtaining reliable cost information, creating alternative activitieswill help ensure optimum efficiency and profitability from the supply chain. Logistics costs may involvemore than one main account or may occur at more than one cost center. It is important in terms of being ableto analyze and logically analyze all the functional costs incurred in order to track logistic costs below themain accounts, from sub-accounts opened parallel to each other and thus, to more easily examine the logistics costs monitored in parallel accounts, and to fulfill logistics requirements (Şen, 2014: 100).
- Logistics activities cover a long process, starting with procurement and including distribution and after-salescustomer service. Therefore, it is very difficult to determine the costs associated with this process and recordit as a separate item as a logistic cost element. For this reason, it is seen in the literature that logisticsactivities are differentiated as input (supply) logistics, production logistics and output (distribution) logistics (Deran, 2012: 156-163; Ercan, 2018: 89-90).
- The ratio of the costs of logistics activities to the total costs is affected by many factors such as the structureof the firms, the sector in which it is located, the stock and transportation policies followed. Neverthelesslogistics costs make up the bulk of the costs in the supply chain. However, it has a significant share in the total costs of the enterprise (Muha, 2019: 102).
- Traditional accounting systems used by most companies today are based on arbitrary methods of distributingcosts shared by multiple contractors, which cannot be directly related to cost contractors.These systems arefunction-oriented and aggregate costs at a level sufficient to understand the production costs associated withstandard products. However, in most cases, the aggregation level of common costs is too high for the cost ofservices rendered on a customer basis to be accurately determined. In logistics management, one of the mainproblems is to determine the common costs on the basis of the customer in a realistic way. A naturalconsequence of these difficulties is the development of cost determination approaches that can collect joint costs for a smaller number of cost contractors (Themido et al., 2000: 1148-1149).
- It should be emphasized that the methods mentioned below should be selected according to their relevance tothe accounting methodology: Absorption costing, Direct costing and Standard costing are more appropriatemethods of logistics costs calculation; Direct product profitability, Activity-based costing and SCOR – asmethods of distribution of logistics costs; Target costing and Кaizen costing as methods of logistics processorganization.The whole stage of logistics costs accounting is absorbed only in the process-orientedaapproach. This is the method used for identification and assigning costs to each relevant process (Serpeninova et al., 2019: 49-50).
- Reference: Serpeninova et al. (2018). Logistics costs accounting: challenges for identification in Ukrainian accounting practice.
- In the literature and practice, there are numerous approaches to determine logistics costs. These are mostoften calculated: by activity, by product or service life cycle, by calculation of target costs, calculation ofcosts based on value chain, calculation of Kaizen costs, etc (Andrejić et al). Some of the following methods of logistics costs distributions are explained in detail below (Visser, 2007: 2-3) .
- ✓ Direct Product Profitability; This method aims to identify all costs associated to product and its flow within distribution channel (Themido et al., 2000).
- Akandere, G. (2019). Yeşil Depo Yönetimi Uygulamalarının İşletme Performansına Etkisi, Atatürk Üniversitesi İktisadi ve idari Bilimler Dergisi, 33(3), 737-753.
- Andrejić, Milan & Kilibarda, Milorad & Pajić, Vukašin. (2018). A framework for assessing logistics costs.Quantitative models in economics (pp.361-377)Publisher: University of Belgrade, Faculty of Economics.
- Aydin, G. and Öğüt, K.S., (2008). Avrupa ve Türkiye‟de Lojistik Köyler. 2. Uluslararası Demiryolu Sempozyumu, TCDD, İstanbul.
- Baki, B. (2004). Lojistik Yönetimi ve Lojistik Sektör Analizi. Trabzon: Volkan.
- Bayraktutan, Y. and Özbilgin, M. (2015). Lojistik Maliyetler ve Lojistik Performans Ölçütleri, Maliye Araştırmaları Dergisi, 1(2), 95-112.
- Bezirci, M. and Dündar, A.O. (2011). Lojistik Köylerin İşletmelere Sağladiğı Maliyet Avantajları. Trakya Üniversitesi Sosyal Bilimler Dergisi. 13(1), 292-307.
- Bokor, Z. (2012). Cost Calculation Model for Logistics Service ProvidersPromet – Traffic&Transportation, 24 (6), 515-524.
- Banomyong, Ruth & Grant, David & Varadejsatitwong, Paitoon & Julagasigorn, Puthipong. (2021).Developing and Validating a National Logistics Cost in Thailand. Transport Policy. https://doi.org/10.1016/j.tranpol.2021.04.026.
- Ceran, Y. and Alagöz A., (2007). Lojistik Maliyet Yönetimi: Lojistik Maliyetler Ve Lojistik MaliyetMuhasebesi. Çanakkale Onsekiz Mart Üniversitesi, Biga İktisadi ve İdari Bilimler Fakültesi Yönetim Bilimleri Dergisi, 5(2), 137- 158.
- Chao, D., Kaihu, H. and Tongtao, W. (2010). Notice of Retraction: Cost accounting method of logisticsdynamic alliance based on activity-based costing, 2010 International Conference on Computer Application and System Modeling, Taiyuan, V2-269-V2-272.
- Christopher, M., (1998). Logistics and Supply Chain Management Strategies for Reducing Cost and Improving Service. Second Edition, Pearson Education Limited, London.
- Council Of Supply Chain Management Professionals, http://www.cscmp.org.Demir, V., (2008). Lojistik Yönetim Sisteminde Maliyet Hesaplaması, Ankara: Nobel.
- Deran, A. (2012). Lojistik Maliyetlerin Tekdüzen Hesap Planına Göre Kayıtlanması. Tokay, S.H. ve Kaya,E. (Ed.), Lojistik Maliyetleri ve Raporlama I içinde (s.144-167). T.C.Anadolu Üniversitesi Yayını No: 2549, Açıköğretim Fakültesi Yayını No: 1519, Eskişehir.
- Ercan, C. (2018). Lojistik Maliyetler Ve Muhasebeleştirilmesi. Uluslarası Ticaret ve Ekonomi Araştırmaları Dergisi, 2(2), 86-95.
- Gökçen, G. (2003). Lojistik Maliyetler. MÖDAV Muhasebe Bilim ve Dünya Dergisi, 5(3), 63-74.
- Gümüş, Y. (2008). Lojistik Maliyetlerinin Faaliyet Tabanlı Maliyetleme Yöntemine Göre Hesaplanması ve Bir Üretim İşletmesi Uygulaması. İzmir SMMMO Dayanışma Dergisi, 1-24.
- Hacirüstemoğlu, R. and Şakrak, M. (2002). Maliyet Muhasebesinde Güncel Yaklaşımlar. İstanbul: Türkmen.Hai, H. V., and Son, N. T. (2019). The Effect Of Logistics Service on Firm Financial Performance In Textile Industry: Evidence From Da Nang City. Vietnam. In MATEC Web of Conferences, 259, EDP Sciences.
- Havenga, J. (2010). Logistics costs in South Africa – The case for macroeconomic measurement. South African Journal of Economics, 74(4).
- Istanbul Chamber Of Commerce, (2006). Türkiye Lojistik Sektörü Altyapı Analizi, İstanbul.
- İrak, G., Şen, H. (2021). Lojistik Maliyetler ve Lojistik Performansın, Firma ve İhracat Performansına Etkisinin Analizi. Muhasebe ve Vergi Uygulamaları Dergisi. 14 (3), 1109-1131.
- Kahveci, A. and Okutmuş, E. (2019). Sürece Dayali Faaliyet Tabanli Maliyetleme (Sdftm) Ve KısıtlarTeorisinin Entegrasyonu İle Lojistik Maliyetlerde Etkinliğin İncelenmesi. Turkish Studies- Economics,Finance,Politics. 14(4), 1309-1322.
- Karacan S. and Kaya M., (2011). Lojistik Faaliyetlerde Maliyetleme. Kocaeli: Umuttepe.
- Kayalı, N., Necef Yereli, A. & Onur, G. (2020). İșletme Yöneticilerinin Lojistik Maliyetlere Bakıș AçılarınınDeğerlendirilmesine Yönelik Uygulama. Van Yüzüncü Yıl Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 47, 303-324.
- Kurtlar, M. ve Atış, C. (2020). Lojistik işletmelerinde ortaya çıkan maliyetlerin stratejik maliyet yaklaşımları açısından karşılaştırılması. Muhasebe Bilim Dünyası Dergisi, 22(1), 38-64.
- Küçük, O. (2016). Lojistik İlkeleri ve Yönetimi. Ankara: Seçkin.
- Mccarthy-Byrne, T. M. and Mentzer, J. T. (2011). Integrating supply chain infrastructure and process tocreate joint value, International Journal of Physical Distribution & Logistics Management 41(2): 135–161.
- Muha, R. (2019). An Overview of the Problematic Issues in Logistics Cost Management, Scientific Journal of Maritime Research, (33), 102-109.
- Rantasila, K. and Lauri O. (2012). Measurement of National-Level Logistics Costs and Performance. ITF Discussion Paper, No.2012-4.
- Themido, I., Arantes, A., Fernandes, C. ve Guedes, A. P. 2000. “Logistics Costs Case Study - An ABC Approach”, Journal of the Operational Research Society, 51(10), 1148-1157
- Onay, A. (2021). Zaman Etkenli Faaliyete Dayalı Maliyetleme (ZEFDM) Yöntemi ile Yeşil Lojistik Maliyet Yönetimi: Bir Vaka Analizi. Muhasebe ve Vergi Uygulamaları Dergisi. 14 (1), 275-312.
- Serpeninova, Y., Makarenko, I. and Linska, A. (2018). Logistics costs accounting: challenges for identification in Ukrainian accounting practice. Accounting and Financial Control, 2(1), 47-53.
- Škerlič, S., & Sokolovskij, E. (2019). A model for managing logistics costs throughout a product’s life cycle: a case study of a multinational manufacturing company. Transport, 34(5), 517-528.
- Şen, İ.K., (2014). Lojistik Faaliyetlerin Yönetimi ve Maliyetleme Yaklaşımları, Çankırı Karatekin Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4(1), 83-106.
- Wen H. and Gu Q., (2014). Proceedings of the Seventh International Conference on Management Scienceand Engineering Management, Volume 242 of the series Lecture Notes in Electrical Engineering, 867-880.
- Visser, E.-J. (2007). Logistic innovation in global supply chains: an empirical test of dynamic transaction- cost theory. GeoJournal, 70(2-3).
- Zwierzyński, P. (2018). Logistic Costs in Company. Research in Logistics & Production. 8(3), 229-236.
