Total Logistics Costs in Supply Chain Management

Abstract

The objective of this research is to develop a mathematical model to calculate the total logistics costs of a manufacturing company. To achieve this objective, seven industrial companies in the auto parts sector in the state of São Paulo were analyzed, identifying the main elements of the logistics process and their substantial costs from the perspective of the supply chain and its management. Logistics costs in manufacturing companies can be evaluated not only from an internal point of view, but also in terms of the relationship between all the actors that make up their production and supply chain. This study adopted a qualitative research design, structured around bibliographic, descriptive, and exploratory approaches, with a focus on identifying and analyzing specific data and information on logistics costs. It is considered exploratory because its main purpose is to develop, clarify, and refine concepts and ideas to guide further research. Following these methodological guidelines, a multiple-case study was conducted in the metropolitan region of São Paulo, involving seven manufacturing firms in the auto parts sector. Fifteen semi-structured interviews were conducted with managers and specialists from the seven manufacturing firms between July and September 2019, each lasting approximately 50 minutes. The findings highlight the need to improve logistics cost control systems and, depending on the requirements of the supply chain, decompose logistics resources using Activity-Based Costing (ABC). In conclusion, this study contributes to the understanding of logistics cost management by providing insights into the integration of direct and indirect costs across the supply chain.