Multiple-method analysis of logistics costs

Janne Engblom, Tomi Solakivi, Juuso Töyli and Lauri Ojala

International Journal of Production Economics, 2012, vol. 137, issue 1, 29-35

Abstract: Logistics costs comprise a significant and relevant proportion of business costs, often exceeding 10 per cent of company turnover. This article examines the differences and interdependencies in the self-reported logistics costs of manufacturing and trading companies operating in Finland. Total logistics costs are taken to consist of six individual components: transport, warehousing, inventory carrying, logistics administration, transport packaging, and indirect costs of logistics. The analysed panel data covers 241 companies identified from two surveys for the years 2005 and 2008. Logistics costs were explored through multiple methods including descriptive analysis, generalised linear mixed models (GLMM), and principal component analysis. The distributions of logistics costs measured as percentages of turnover were skewed and best described by the beta distribution. Time, the number of employees, turnover, industry, and level of internationalisation were shown to be statistically significant explanatory variables of logistics costs. Logistics costs tended to be lower in larger companies, although diseconomies of scale eventually prevail. The analysis also covers changes in costs between 2005 and 2008. In general, the results indicate the need for caution in interpreting changes in logistics costs, and for simultaneously controlling the effects of background variables.

Keywords: Logistics costs; Panel study; Mixed model; Random effect (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527312000084
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:137:y:2012:i:1:p:29-35

DOI: 10.1016/j.ijpe.2012.01.007

Access Statistics for this article

International Journal of Production Economics is currently edited by Stefan Minner

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().