Faceted classification of logistics costs at industrial enterprises

Oleksandr Mykolayovych Gavrys, Valentyn Ihorovych Kovshyk


Introduction. This article examines the opportunities and challenges of the logistics costs classification at industrial enterprises. The basic classification criteria that are essential for grouping of these costs and described in the scientific literature on the subject are considered. The existing classifications including multi-criteria and multi-level ones are investigated. An importance of the effective costs classification system for developing of cost management as a prerequisite for profitability and competitiveness is emphasized in the article.

Purpose. The aim of the article is to develop a classification of logistics costs at industrial enterprises that meets requirements of cost management and cost accounting as well as needs of further research in this area. The study aims to improve the existing theoretical framework for managing the logistics activities and costs at industrial enterprises.

Method (methodology). The study utilizes a method of comparative analysis of existing logistics costs classifications, as well as some elements of quantitative frequency analysis of an investigated literature to identify key classification criteria and to specify the exhaustive list of categories to group the costs by logistics functions.

Results. The study suggests the use of faceted classification of logistics costs with the use of three parallel classification criteria: phase of logistics process (procurement, production and distribution), logistic functions (transportation, warehousing, order processing, etc.) and a variability of costs over time relatively to a production output and processed material and information flows (variable and fixed costs). The article reveals benefits of the faceted classification over the traditional hierarchical approach in the area of accounting and cost management. The classification of logistics costs by logistics functions was ascertained. It was proposed to identify eight major groups of costs based on this criterion: transportation, warehousing, inventory management, order processing, information support and communications, packaging, administrative and other costs. The possible ways of further use of the proposed faceted classification in the practice of business and scientific research on logistics costs management were specified. 


classification; logistics; logistics costs; logistics functions; cost management; costs evaluation; industrial production

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Science Works Journal "Ekonomichnyy analiz"

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