Controlling logistics cost of road construction companies

Elena Takishina (), Elena Popchenko () and Alina Livadnaya ()
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Elena Takishina: Russian Presidential Academy of National Economy and Public Administration
Elena Popchenko: Russian Presidential Academy of National Economy and Public Administration
Alina Livadnaya: Russian Presidential Academy of National Economy and Public Administration

Published Papers from Russian Presidential Academy of National Economy and Public Administration

Abstract: Currently road construction refers to actively developing the market sector of the Russian economy, due to a number of factors, the most significant of which are the territory of the country, the size of the economy and attention of the state and of business. Road construction and maintenance works are highly capital intensive sector of the Russian economy. In this regard, important is the effective management of costs and improvement of pricing mechanism in the field of road construction, one of the key objectives of which is to reduce the cost of the works in compliance with the norms and quality standards. The solution to this issue is inextricably linked with planning and cost control, including logistics. Logistics costs are part of costs of the enterprises of road construction and significantly affect their price. Logistics costs have a significant impact on the cost of road construction sites, however, this group costs in the national practice of cost management are neglected. The reason for this is the lack of a coherent system of controlling at the enterprises of road construction and logistics costs are not grouped and their individual components are accounted for in the accounts financial accounting, management reporting is fragmented, which complicates the analysis and control of logistics costs from the point of view of relevance. In addition, the composition of logistics costs of organizations in road construction depends on several factors: the scale of operation type of transport used; the type, weight and size of cargo; organization of warehousing and a number of others, which brings also some difficulties in the classification of logistics costs. The most significant factors that have a significant impact on the process of formation of costs in road construction: 1) human error and 2) the territorial factor. The identification, recording and analysis of logistics costs should be systematic procedures. Controlling service must have accounting and calculation of logistics costs, the analysis of the structure and dynamics of logistics costs, find ways of their reduction and optimization. The concept of controlling for the Russian regulatory framework, legal and socio-technological features in combination with the developments of Russian scientists, opens up new possibilities for search of more sophisticated models of management of enterprises of road construction, creation on this basis of effective methods of management of logistic costs to meet modern managerial problems of road-building enterprises.

Keywords: controlling; logistics cost; classification of costs; managerial accounting (search for similar items in EconPapers)
Pages: 4 pages
Date: 2014
Note: Published in the papers of the Third International Conference on Eurasian scientific development, Vienna, 2014.
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