COST MANAGEMENT THROUGH OPTIMIZING THE LOGISTICS SYSTEM OF AGRIBUSINESSES

Abstract

The research paper deals with the problems of cost management in the logistic system of agro-industrial enterprise. The view of different researchers on this problem is considered and analyzed; the composition of logistics costs of the agro-industrial complex is determined; the factors are determined that influence the costs and the methods and means of cost optimization are outlined. It is suggested to divide costs of the logistics system by the stages logistics and supply activities into the order costs, procurement costs, transportation costs and storage. It is determined that the level of logistics costs in Ukraine is due primarily to infrastructure factors; secondly, to factors of internal logistics of enterprises; thirdly, to agriculture-specific factors that influence logistics of this sector (significant impact of seasonal operations while limiting the resources to carry them out, the relationship of all logistics processes with the natural cycle, the lack of territorial localization of production processes, as companies that process raw materials of the agro-industrial complex are far from its source; the need for significant financial resources for sales, processing or storage; high quality requirements of agricultural products (especially in view of the EU requirements). To optimize logistics costs of agribusiness it is suggested to use a wide range of techniques: Pareto principle, benchmarking, activity-based costing, target costing, Kaizen costing, XYZ-analysis, JUST-IN-TIME method, LCC costing, ABC analysis, a balancing method, budgeting and outsourcing. As for the measures, it is suggested to increasingly use logistics outsourcing and introduction of the use of logistics information systems such as SCM and ERP II. The need to improve public (including regional) logistics policy for rail and river transport, warehouse logistics, elevators, mooring infrastructure and to create transparent conditions for investment by private companies in the development of logistics infrastructure is emphasized.

Authors and Affiliations

I. V. Yegorashchenko

Keywords

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  • EP ID EP517246
  • DOI -
  • Views 106
  • Downloads 0

How To Cite

I. V. Yegorashchenko (2018). COST MANAGEMENT THROUGH OPTIMIZING THE LOGISTICS SYSTEM OF AGRIBUSINESSES. Проблеми системного підходу в економіці, 3(65), -. https://europub.co.uk/articles/-A-517246