Calculation and assessment of warehouse costs in logistics. Types of costs
The warehousing budget contains information on financial and economic indicators that characterize the efficiency of the "Warehouse" business process and is intended to manage the financial and economic efficiency of the company's warehouse logistics.
The warehousing budget may contain, for example, the following groups of indicators characterizing the efficiency of the “Warehousing” business process:
Using these indicators contained in the warehousing budget, you can manage the “Warehousing” business process itself.
Warehouse logistics has recently become one of the bottlenecks for many growing companies. And in this area of activity there may be significant reserves for increasing the efficiency of the company, especially when it comes to trading organizations. Indeed, in trading companies, unlike manufacturing companies, a significant share of costs consists of the costs of purchasing goods and warehouse logistics.
If the company has already more or less optimized its work in terms of reducing purchase prices, then the only area of work that can make a significant contribution to improving the activities and improving the financial and economic condition of the company by reducing costs is logistics and warehouse logistics, in particular .
Regulations for budgeting warehousing (warehouse costs)
When building budgeting for warehouse logistics, it is very important to pay attention to ensuring control of cost and time indicators. Moreover, it may even be that time indicators will be more important than cost indicators. That is, for example, a very important indicator may be the time of processing goods in a warehouse, the time of shipment of goods to the buyer, etc. For some types of business, shipping times can be one of the significant success factors.When creating warehousing budgeting regulations, you need to pay attention to the boundaries of this business process. That is, for each of the company’s business processes it should be clear where it begins and where it ends, and at what point in time responsibility passes from one division to another. At such junctions of business processes, problems may arise that will lead to a deterioration in the performance of business processes, and as a result, the financial and economic performance of the company as a whole.
In one retail chain, for example, this caused the following problem. The delivery time of goods from the supplier to the retail outlets was a very significant factor affecting sales volume. Products from suppliers first arrived at the distribution center for accounting and preparation for shipment to retail outlets. The company's office and warehouse were located on the 4th floor.
When the company was choosing an office, it made a mistake. Naturally, when looking at options for office space, we always paid attention to whether there was a freight elevator if the office was not rented on the ground floor. As it turned out later, it was necessary to ask the landlords not only about the presence of an elevator, but also whether it works or not.
As a result, an office was found that met all parameters and was quite inexpensive. There was a large freight elevator, but it did not work, or rather, it worked, but it often broke down. When renting out this premises, the landlords honestly told everyone that the building had a large freight elevator. They didn’t talk about the fact that it often broke down and didn’t work because no one asked.
The landlord made sure that the elevator was working when inspecting the office. The company realized later that it was necessary to go to other tenants and ask what was happening and how. So, since the elevator often broke down, this led to the fact that the company’s drivers, delivering products to the warehouse and from the warehouse to retail outlets, refused to act as loaders.
Distribution center employees also said that they work with what is delivered to the warehouse. Due to such disputes, there were often delays in the delivery of goods to retail outlets and the company lost profits. It was possible, in principle, to increase the wages of drivers or distribution center employees so that they could close this lost “tail” of the business process. But the company had restrictions on wages, as well as on other items of fixed expenses.
That is, the elements of the budgeting system operating at that time did not miss such a decision. The company tried to get the landlord to overhaul the elevator. To such a proposal, a response was received from the landlord that this year they also began to introduce a budgeting system and they do not have such expenses.
Of course, it was possible to change the office, but in the end it was decided to chip in with the rest of the interested tenants and do a major overhaul of the elevator ourselves. According to calculations, this solution with one-time costs was more profitable than increasing monthly labor costs. In addition, with this solution, such an important indicator as product delivery time decreased, which had a positive effect on the company’s revenue and profit.
Example of warehousing budgeting regulations (warehouse costs)
An example of the main functions that can be performed as part of warehousing budgeting (warehouse costs) during the planning phase (see Rice. 1):Fig.1. Example of budgeting regulations for warehousing (warehouse costs) (at the planning phase)
An example of the main functions that can be performed within the framework of warehousing budgeting (warehouse costs) in the accounting, control and analysis phase (see. Rice. 2):
Rice. 2. Example of regulations for budgeting warehousing (warehouse costs) (at the phase of accounting, control and analysis)
Warehousing budget model (warehouse costs)
Several approaches can be used to plan warehousing costs. A simpler approach is that for each major item of warehousing costs, based on the processing of statistical information, the cost values for the planning period are determined. That is, we are talking about such an approach as planning from the fact. On the one hand, it is quite simple, but on the other hand, it can be very inaccurate.A more complex and accurate approach is that all warehousing cost items are divided into variable and fixed. To plan fixed costs, clear action plans are drawn up, linking them to costs, payments and assets.
Again, several different options can be used to plan variable costs. For example, it is possible to obtain a linear relationship between these cost items and volumetric indicators based on the processing of statistical information for previous periods. Or, by analogy with transport costs, you can introduce internal (transfer) prices for the services of the company’s warehouse system.
That is, you can enter the cost of processing one place in the warehouse, the cost of storage, etc. In this case, variable warehousing costs can be more clearly tied to the volume indicators on which these cost items actually depend.
But at the same time, of course, the management accounting system will become more complicated. But the accuracy of planning will increase and the quality of performance of such functions as plan-fact analysis of the execution of the warehousing budget will increase, which, naturally, will affect the increase in the degree of controllability of the financial and economic state of the company.
Example of a warehousing budget model (warehouse costs)
IN table 1 An example of a budget for warehousing and storage costs for a trading company engaged in the sale of coffee machines and product cartridges (coffee, soups) is presented. This budget, as well as the budgets compiled for other business processes of this company, highlights the current and investment part of the costs. The main items of current costs are: wages of storekeepers, rental of warehouse premises and depreciation of fixed assets of the warehouse. Table 1. Example of a warehousing budget (warehousing and storage costs)| Cost items | six months | 1st month | 2nd month | 3rd month | 4th month | 5th month | 6th month | ||||
| Current costs | 21 668 | 1 448 | 1 977 | 2 582 | 3 664 | 5 154 | 6 843 | ||||
| Storekeepers' salaries | 20 442 | 1 398 | 1 849 | 2 425 | 3 429 | 4 875 | 6 466 | ||||
| Permanent part | 12 600 | 900 | 1 200 | 1 500 | 2 100 | 3 000 | 3 900 | ||||
| number of storekeepers | 42 | 3 | 4 | 5 | 7 | 10 | 13 | ||||
| warehouse turnover | 78 416 | 4 976 | 6 492 | 9 254 | 13 286 | 18 747 | 25 661 | ||||
| cargo turnover controllability standard, pcs. | 2 000 | 2 000 | 2 000 | 2 000 | 2 000 | 2 000 | |||||
| salary of one storekeeper | 300 | 300 | 300 | 300 | 300 | 300 | |||||
| Variable part (premium) | 7 842 | 498 | 649 | 925 | 1 329 | 1 875 | 2 566 | ||||
| warehouse turnover | 78 416 | 4 976 | 6 492 | 9 254 | 13 286 | 18 747 | 25 661 | ||||
| unit processing premium | 0,10 | 0,10 | 0,10 | 0,10 | 0,10 | 0,10 | |||||
| Warehouse rental | 663 | 50 | 63 | 88 | 125 | 150 | 188 | ||||
| area, sq. m. | 4 | 5 | 7 | 10 | 12 | 15 | |||||
| remaining goods | |||||||||||
| devices | 9 | 21 | 35 | 49 | 66 | 81 | |||||
| products | 613 | 919 | 1 377 | 1 965 | 2 734 | 3 628 | |||||
| accessories | 504 | 779 | 1 171 | 1 661 | 2 298 | 3 016 | |||||
| area occupied by product packaging, sq. m. | |||||||||||
| devices | 0,24 | 0,24 | 0,24 | 0,24 | 0,24 | 0,24 | |||||
| products | 0,02 | 0,02 | 0,02 | 0,02 | 0,02 | 0,02 | |||||
| accessories | 0,02 | 0,02 | 0,02 | 0,02 | 0,02 | 0,02 | |||||
| product density | |||||||||||
| devices | 3 | 3 | 3 | 3 | 3 | 3 | |||||
| products | 20 | 20 | 20 | 20 | 20 | 20 | |||||
| accessories | 50 | 50 | 50 | 50 | 50 | 50 | |||||
| rental price 1 sq. m per year | 150 | 150 | 150 | 150 | 150 | 150 | |||||
| coefficient of efficient use of warehouse space | 50% | 60% | 70% | 70% | 80% | 80% | |||||
| Depreciation of warehouse fixed assets | 564 | 0 | 66 | 69 | 111 | 129 | 189 | ||||
| Computer | 146 | 29 | 29 | 29 | 29 | 29 | |||||
| 42 | 8 | 8 | 8 | 8 | 8 | ||||||
| Telephone | 8 | 2 | 2 | 2 | 2 | 2 | |||||
| Shelving for goods | 160 | 10 | 13 | 30 | 40 | 67 | |||||
| Trolleys | 208 | 17 | 17 | 42 | 50 | 83 | |||||
| Product losses during storage | 1 348 | 74 | 110 | 165 | 236 | 328 | 435 | ||||
| % losses | 2% | 2% | 2% | 2% | 2% | 2% | |||||
| cost of stored products | 3 678 | 5 514 | 8 262 | 11 790 | 16 404 | 21 768 | |||||
| Investment costs | 940 | 940 | 0 | 0 | 0 | 0 | 0 | ||||
| Acquisition of fixed assets | 940 | 940 | 0 | 0 | 0 | 0 | 0 | ||||
| Computers | 700 | 700 | |||||||||
| Workplace (table, chair, bedside table) | 200 | 200 | |||||||||
| Phones | 40 | 40 | |||||||||
| Shelving for goods | 2 160 | 240 | 80 | 400 | 240 | 640 | 560 | ||||
| number of purchased racks | 27 | 3 | 1 | 5 | 3 | 8 | 7 | ||||
| rack capacity (number of products) | 250 | 250 | 250 | 250 | 250 | 250 | |||||
| food leftovers | 613 | 919 | 1 377 | 1 965 | 2 734 | 3 628 | |||||
| rack price | 80 | 80 | 80 | 80 | 80 | 80 | |||||
| Trolleys | 2 600 | 400 | 0 | 600 | 200 | 800 | 600 | ||||
| number of trolleys purchased | 13 | 2 | 0 | 3 | 1 | 4 | 3 | ||||
| warehouse turnover | 78 416 | 4 976 | 6 492 | 9 254 | 13 286 | 18 747 | 25 661 | ||||
| average volume of transportation per trolley | 4 000 | 4 000 | 4 000 | 4 000 | 4 000 | 4 000 | |||||
| cart price | 200 | 200 | 200 | 200 | 200 | 200 | |||||
| Total warehousing and storage costs | 22 608 | 2 388 | 1 977 | 2 582 | 3 664 | 5 154 | 6 843 | ||||
The wages of storekeepers consist of a fixed and variable part. The constant part is calculated by multiplying the number of working storekeepers by the salary. In order to determine the number of storekeepers, this budget uses the following model. A cargo turnover controllability standard is being introduced.
It is clear that with an increase in cargo flow through a warehouse, an increase in storekeepers is also required. Warehouse cargo turnover is planned based on data on sales, purchases and stock balances. Using data on warehouse turnover and controllability standards, the required number of storekeepers is calculated. To do this, the warehouse turnover is divided by the standard, and the resulting number is rounded up.
The variable part of wages again depends on cargo turnover. The company has introduced a bonus for processing a unit of goods passing through the warehouse. Thus, the variable part of the wages of storekeepers is determined by multiplying the value of cargo turnover by the bonus for processing a unit of goods.
By the way, it is obvious that to calculate the variable part of wages you do not need to know information about the number of storekeepers. Therefore, if storekeepers had only a variable part, then there would be no need to introduce a cargo turnover controllability standard. Although you still need to know the number of employees, because... Other budget indicators may depend on this.
The costs of renting a warehouse space are planned as follows. The area of the premises is multiplied by the rental price of 1 sq. m. per year and is divided by the coefficient of effective use of warehouse space. Obviously, there must be free space in the warehouse so that you can roll carts with goods, arrange goods, etc. Therefore, it is impossible to achieve 100% filling of the warehouse area.
In the example presented, it is assumed that this coefficient will increase over time. This is quite logically explained by the fact that as the warehouse area increases, the space needed by storekeepers does not grow in direct proportion to the increase in area. The growth rate of such a workspace is much lower. Therefore, the model plans that within six months the coefficient of effective use of warehouse space will increase from 50% to 80%.
To calculate the required warehouse area in this example of a warehousing and storage budget, the following methodology is used (see. Table 1). Inventory balances are multiplied by the area required to accommodate them in accordance with storage conditions. Naturally, the goods will be placed in the warehouse, so to speak, not in one layer. Therefore, the resulting value is divided by the density of goods placement. And this placement density is determined by the size of the racks, taking into account the requirements for storing goods.
The result obtained is rounded upward, and thus the estimated warehouse area is obtained. Of course, the model could be complicated, since in reality there may not be a warehouse with the required footage, and therefore you will have to rent a slightly larger room. In addition, if the company plans such dynamic development in advance, it may be more profitable to immediately rent a large premises.
In addition, if you look for a new premises every time, this can lead to additional costs of time (if the company is looking for itself) or money (if the company attracts agents). But in this case, it was decided not to complicate the model, since the management of this company had a good relationship with the landlord, so he could, indeed, “cut” the warehouse space he rented out almost by the meter.
The last item of current costs in this budget example is depreciation of warehouse fixed assets. It was calculated based on information about the planned acquisition of fixed assets. To calculate depreciation, data on the cost of fixed assets, the period of their acquisition and commissioning, as well as their useful life were used. It was assumed that fixed assets were put into operation in the same month in which they were acquired.
The investment costs of the presented example of a budget for warehousing and storage costs consist precisely only of the costs of purchasing fixed assets. When planning the business process "Warehousing and Storage", it was decided that for the efficient operation of a warehouse the following fixed assets are needed: a computer, a workstation where one could work on a computer, a telephone, racks for goods and carts for transporting them .
It was decided that one computer and one equipped workstation with a telephone would be sufficient. They were planned to be purchased in the first month. But as for carts and racks, a dynamic model was used to plan the number of purchases. The volume of required racks was tied to inventory balances and rack capacity. That is, the number of required racks was calculated by dividing inventory balances by capacity.
The resulting number was rounded up. The number of required carts was calculated based on planned data on the warehouse's cargo turnover and the average volume of "transportation" on one cart. That is, the cargo turnover was divided by the volume of transportation, and the resulting number was rounded up.
Naturally, to plan costs it was necessary to apply not only the model for calculating the quantitative component, but also determine the price factor. In this example of the model, the assumption was made that prices would not rise. Although for some cost items this may be a rather bold assumption.
For example, if we are talking about the price of renting premises, then six months may be quite a long period for the cost to change (naturally, upward). But in this example, we decided to ignore this potential impact of the cost factor on costs.
Note: the topic of this article is discussed in more detail at the workshop
The design organization, on the instructions of the Customer (budget construction), draws up design documentation for the construction of an industrial facility according to the 2017 estimate and regulatory framework and using new Methods. Disagreements arose regarding the determination of procurement and storage costs for equipment.
We applied 1.5%, and the Customer requires 1.2%, as was before. Which one of us is right?
Answer
Please note that previously, according to clause 3.3.1. and 3.3.12 “Guidelines for the development of collections (catalogues) of estimated prices for materials, products, structures and collections of estimated prices for the transportation of goods for the construction and major repairs of buildings and structures” - (and clauses 4.24. and 4.64.), procurement -warehouse costs were taken as a percentage of the cost of materials, products and structures, as well as equipment, taking into account transportation costs (ex-vehicle at the on-site warehouse of the construction site), since the estimated price for materials was formed from the following elements:
- selling price (including containers, packaging and props);
- markups (surcharges) of supply and sales organizations;
- customs duties and fees (when received from abroad);
- the cost of transportation and loading and unloading work (as a rule, the cost of loading work is taken into account directly in the selling price, and the cost of unloading work is included in the unit prices for construction, installation and repair work);
- procurement and storage costs, including packaging costs.
The amounts of procurement and storage costs were determined in clause 3.3.12:
"3.3.12. Procurement and storage costs are determined on the basis of calculations based on the conditions prevailing in the region. For construction projects financed from the federal budget, they are accepted according to SNiP 4-91 standards as a percentage of the cost of materials, including:
- for building materials, products and structures (except for metal structures) - 2%;
- for metal building structures - 0.75%;
- for equipment - 1.2%.
Currently, by order of the Ministry of Construction dated December 20, 2016 No., the “Methodology for determining estimated prices for materials, products, structures, equipment and prices of services for the transportation of goods for construction” has been approved. The approved Methodology does not directly indicate which existing Methodology it is being introduced to replace, but it can be assumed that instead.
In pp. 4.1 and 4.13 of the Methodology, the concept of “estimated” price and definition of procurement and storage costs has been changed:
"4.1. Selling prices (sales prices) of domestically produced material resources include the cost of containers, packaging and props (if any), the cost of a set of spare parts for the warranty period (for equipment), and the cost of loading products onto vehicles at the manufacturer’s warehouse.
4.13. Estimated prices formed in the manner prescribed by this section do not take into account transportation costs for the delivery of material resources from manufacturers (suppliers) to the on-site warehouse of the construction site and procurement and storage costs. Transport and procurement and storage costs are determined when drawing up estimate documentation in the manner established in the Methodology for the Application of Estimated Prices of Construction Resources.”
More specifically about accounting for transportation costs and procurement and storage costs stated in clause 6.4.5 “Methods for applying estimated prices of construction resources”, approved by order of the Ministry of Construction dated 02/08/2017 No.:
"6.4.5. The cost of material resources, taking into account the costs of delivery to the on-site warehouse, is determined in accordance with formula (6.1):
Z = (SC * ZSR + T1) + (SC * ZSR + T2) / 2
where: 3 - cost of material resource, rub.;
SP - estimated price of a construction resource - consolidated, territorially aggregated documented information on the cost of construction resources, established by calculation for the accepted unit of measurement and published in the Federal State Information System of Pricing in Construction, rubles;
T1, T2 - cost of transportation of material resources, rub.;
ZSR - procurement and storage costs, rub*.
The ZSR indicator is differentiated by the following types of material resources:
- building materials (except for metal structures) - 2%;
- metal building structures - 0.75%;
- equipment -1.5%.
Thus, procurement and storage costs according to the given formula are charged on the estimated (or rather, on the selling) price of materials. Until now, the Ministry of Construction has refused to make changes to the procedure for calculating procurement and storage costs.
Glavgosexpertiza, in its letter dated October 24, 2017 No. 01-01-17/7342-IL (given below), reported that 1.5% is a typo (i.e. the amount of procurement and storage costs for equipment should be the same as before - 1.2% according to clause 4.64 or clause 3.3.12).
LETTER
Federal Autonomous Institution "Main Directorate of State Expertise" (FAU "Glavgosexpertiza of Russia")
dated October 24, 2017 No. 01-01-17/7342-IL
FAU "Glavgosexpertiza of Russia" reports the following.
When drawing up estimate documentation using federal estimated prices for materials, products, structures and equipment used in construction FSSC 81-01-2001, you should be guided by the general provisions for them.
According to paragraph 5 of the General Provisions of the FSSC 81-01-2001, procurement and warehouse costs are accepted as a percentage of the cost of materials, products, structures and equipment ex-office warehouse in the amount of:
- for building materials, products and structures (except for metal building structures) - 2%;
- for metal building structures - 0.75%;
- for equipment - 1.2%.
The provisions of the Methodology for the Application of Estimated Prices of Construction Resources (hereinafter referred to as the Methodology), approved by Order No. of the Ministry of Construction of Russia dated 02/08/2017, apply to estimated prices determined in accordance with:
- Methodology for determining estimated prices for labor costs, approved by order of the Ministry of Construction of Russia dated December 20, 2016 No.;
- Methodology for determining estimated prices for the operation of machines and mechanisms, approved by order of the Ministry of Construction of Russia dated December 20, 2016 No.;
- Methodology of estimated prices for materials, products, structures, equipment and prices of services for the transportation of goods for construction, capital construction projects, approved by order of the Ministry of Construction of Russia dated December 20, 2016 No.
First Deputy
Head of the Pricing Establishment
I.N. Lishchenko
*Must be %, not rubles (editor's note).
Storage costs are associated with ensuring the safety of products. They are additional costs caused by the continuation of the production process in the sphere of circulation, i.e. they are productive in nature. However, they will be productive costs only when storing the standard volume of product inventories necessary to ensure the continuity of the logistics process. Storage costs include:
· costs of maintaining warehouses;
· wages of warehouse personnel;
· shortage of products within the limits of natural loss;
· administrative, management and other expenses. Warehouse costs are determined by the amount of costs for organizing the storage of products and the amount of overhead costs.
Objectives of minimizing warehouse costs:
· determination of the optimal number of storage stages;
· determination of the optimal number of warehouses at each stage;
· establishing warehouse locations that ensure minimum total costs;
· finding a rational distribution of delivery locations.
List of costs required to operate a warehouse:
1. costs of planning the load and work of warehouse personnel;
2. costs for commissioning and testing;
3. annual costs for interwarehouse movements;
4. cash expenses written off as expenses;
5. costs for the necessary initial inventories of products.
Transportation costs
These are the costs of transporting products from the place of sale or purchase to the location of buyers; are additional costs associated with the continuation of the production process in the sphere of circulation. Transport costs include payment of transport tariffs and various fees of transport companies, the cost of maintaining your own transport, the cost of loading and unloading operations, and freight forwarding.
Costs associated with transporting products from seller to buyer:
1. costs associated with preparing products for shipment (checking products for quantity and quality, sampling, packaging);
2. costs of loading products onto the vehicles of the domestic carrier;
3. payment of tariffs for transportation from the point of departure to the point of transshipment to mainline transport;
4. payment of tariffs for loading cargo onto long-haul vehicles;
5. payment of the cost of transporting products by international transport;
6. payment for cargo insurance upon delivery;
7. payment of customs duties, taxes and fees when crossing the customs border;
8. costs of storing products in transit and at transshipment points;
9. expenses for unloading cargo at the destination;
10. costs of delivering products from the buyer’s warehouse to the final destination.
The main directions for reducing transportation costs:
· reducing fuel costs by choosing the optimal refueling locations, taking into account the cost of fuel in different countries;
· reducing the cost of “per diems” and “room allowances” by standardizing the flight time;
· reducing the cost of tolls by choosing the optimal route, as well as the use of mixed road-sea, road-rail communications;
· increasing labor productivity.
Costs of importing products include:
· payment of tariffs and fees of transport enterprises when delivering products to trading enterprises. Tariffs are calculated as the product of the average tariff rate for 1 ton of cargo of a given class (at a specified average distance) by the weight of the cargo;
· fees of transport enterprises for loading and unloading operations, as well as for the supply and cleaning of vehicles (cars, wagons);
· payment for freight forwarding services and other services;
· costs of maintaining your own transport.
TO shipping costs include:
· expenses for equipment of vehicles;
· costs of redirecting goods;
· fees of transport organizations;
· expenses for paying third party bills;
· costs of paying for loading and unloading operations and services when sending products from wholesalers.
Cost of transportation- the amount of operating costs of a transport enterprise, expressed in monetary terms, per unit of transport production on average.
The cost of transporting 1 ton of cargo consists of the following costs:
1. for loading and unloading;
2. transportation;
3. repair and maintenance of highways;
4. organizing and ensuring traffic safety on the roads;
5. warehousing of cargo;
6. preparing cargo for transportation and storage after unloading.
The considered and many other types of costs form the cost of the product.
Product cost- costs expressed in monetary form associated with the use of fixed assets, raw materials, materials, fuel, energy, labor in the production process, as well as other costs for the production and sale of products.
1. raw materials and materials;
2. purchased components, semi-finished products and production services;
3. returnable waste (subtracted);
4. fuel and energy for technological purposes;
5. basic wages for production workers;
6. additional wages for production workers;
7. taxes and contributions to the budget, fees and contributions to local authorities;
8. wear and tear of tools and devices for specific purposes;
9. general production expenses;
10. general business expenses;
11. losses from marriage;
12. commercial expenses.
The cost of production is one of the factors in generating profit. There is an inverse functional relationship between the amount of profit and cost. When costs of products sold increase at a higher rate than revenue, profitability of sales decreases, and vice versa. The cost of goods sold is not equal to the cost of goods manufactured. Differences in the growth rates of the cost of manufactured and sold products show trends in changes in the profitability of sales in the next period, when the remaining finished products of the reporting period are sold. So, if the cost of manufactured products increased at a slower pace than those sold, then we can assume that in the next period, other things being equal, the profitability of sales will increase. Stages of cost analysis:
1. comparison of costs for manufactured and sold products with changes in sales revenue;
2. assessment of the efficiency of use of each type of resource;
3. analysis of costs per 1 rub. manufactured (sold) products;
4. analysis of revenue per 1 rub. invested funds.
These indicators provide a clear connection with profit - an increase in costs leads to a decrease in profit from each ruble of invested funds, and vice versa.
The advantage of these indicators is that they are universal - they can be used in any industry and cover both all products and their individual types.
The disadvantage of indicators is that they can be influenced by many factors, both subjective and objective, i.e., independent of the quality of the enterprise’s work.
For cost reduction enterprises conduct cost analysis. In this case, various methods:
1. strategic analysis- comparison of the position of the enterprise in terms of costs for servicing consumers with another engaged in a similar type of activity;
2. functional cost analysis- a method based on a thorough study of individual stages of the process of fulfilling consumer orders and determining the possibility of their standardization for the transition to cheaper technologies.
Principles of control over logistics costs: 1) efforts are concentrated on controlling costs where they arise;
3. data for different types of costs are processed differently;
4. An effective way to reduce costs is to reduce activities (procedures, works, operations). Attempts to reduce the level of additional costs are rarely effective. You can't try to do something at low cost that shouldn't have been done at all;
5. The activities of the enterprise must be assessed as a whole. To economically evaluate a business, you need to have an idea of how reducing costs in one area will affect productivity in another;
6. It is not enough to control only those costs that arise within one enterprise; it is necessary to identify the mechanism of their formation and the influence of external factors.
Ways to reduce logistics costs:
1. conducting negotiations with suppliers and buyers to establish lower selling and retail prices, as well as trade discounts;
2. search for cheaper substitutes for resources;
3. identifying, through analysis and review of the supply chain, those activities that do not create added value and their elimination;
4. compensation for rising costs in one link of the supply chain by reducing costs in another;
5. improving the interaction of the enterprise with its suppliers and consumers in the supply chain. For example, coordination of the activities of an enterprise and its partners in the field of timely delivery of products reduces the level of costs for warehouse operations, inventory management, storage and delivery of finished products;
6. conducting regular internal audits with subsequent identification of reserves to improve the use of enterprise resources;
7. updating the most expensive parts of the supply chain by attracting investment in business;
8. increasing the level of employee training through participation in trainings, advanced training courses, and conducting certifications;
9. use of progressive methods of remuneration (bonuses for achieving and exceeding planned targets);
10. assisting suppliers and buyers in achieving lower costs (customer business development programs, seminars for dealers).
Joannes Vermorel, December 2016
Inventory costs are the costs associated with storing and replenishing inventory over a period of time. Typically, inventory costs are expressed as a percentage of total inventory value (an annual average; e.g., for retail, the average quantity purchased from suppliers per year) for every year. This figure varies greatly depending on the field of activity, but it is always quite high. It is generally accepted that Carrying costs alone account for about 25% of the total value of inventory on hand.
Thus, it is quite difficult to give a clear definition. Warehousing costs, total inventory management costs (ITC), inventory holding costs, ...: the terms associated with "warehouse costs" can be quite confusing, and what they mean varies only slightly depending on the source and industry. companies. In this article, we focus on the costs of “static” inventories, rather than the costs of handling goods. More precisely, we put aside issues related to the flow of goods and consider exclusively the costs of storing a certain amount of goods. We also look at these issues from the perspective of business organizations.
For retailers, wholesalers, and most online sellers, inventory is typically their largest asset and largest expense. That is why assessing the costs of storing goods is so important, affecting the financial activities and management of the company. It helps companies determine how they can benefit from inventory, how they can cut costs, where they can make changes, which suppliers or products to choose, how to allocate capital, and so on.
List of sources
1. Mary Lu Harding, C.P.M., CPIM, CIRM, “Calculating the total cost of ownership for items which are inventoried,” NPMA, volume 14, issue 2, 2002.2. Christopher S. Jones and Selale Tuzel, “Inventory Investment and the Cost of Capital,” January 2009, available online. 3. Helen Richardson, “Control your costs then cut them,” Transportation & Distribution, December 1995, 94-96.
4. Edward A. Silver, David F. Pyke, Rein Peterson, Inventory Management and Production Planning and Scheduling, 3r edition, John Wiley & Sons, 1998.
5. Stephen G. Timme and Christine Williams-Timme, “The Real Cost of Holding Inventory,” Supply Chain Management Review, 7/1/2003.
MDS 81-35.2004
4.64. IN procurement and storage costs include costs associated with placing purchase orders, acceptance, accounting, storage of equipment in a warehouse, inspection and preparation of it for installation, as well as transferring it for installation. They are taken into account as part of the estimated cost of equipment. Size procurement and storage costs may be determined by a separate calculation.
MDS 81-2.99
3.3.1. The estimated price for the material is formed on the basis of the following components:
- selling price (including containers, packaging and props);
- markups (surcharges) of supply and sales organizations;
-customs duties and fees (when received from abroad);
- the cost of transportation and loading and unloading work (as a rule, the cost of loading work is taken into account directly by the selling price, and the cost of unloading work is included in unit prices for construction, installation and repair work);
— procurement and storage costs, including packaging costs.
3.3.12. Procurement and storage costs are determined on the basis of calculations based on the prevailing conditions in the region. For construction projects financed from the federal budget, they are accepted according to SNiP 4.04-91 standards as a percentage of the cost of materials, including:
For building materials, products and structures (except for metal structures) - 2%;
For metal building structures - 0.75%;
For equipment - 1.2%.
MDS 81-36.2004
1.7. The FER takes into account:
- estimated prices for building materials, products and structures - according to the Federal Collection of Estimated Prices for materials, products and structures used in construction (include average prevailing selling prices and transport costs in the amount of up to 13% of selling prices, taking into account delivery from the ex-warehouse manufacturer to the on-site warehouse for the construction of the facility, including procurement and storage costs and costs of intermediaries in the field of circulation);
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