Authors: Marvin E. Gonzalez; Gioconda Quesada; Maria Clarette Urbina Salgado; Robert S. Hogan
Addresses: School of Business, Department of Supply Chain Management, College of Charleston, 6 Liberty Street, Charleston, SC. 29424, USA ' School of Business, Department of Supply Chain Management, College of Charleston, 6 Liberty Street, Charleston, SC. 29424, USA ' Darla Moore School of Business, Department of Accounting, University of South Carolina, 1014 Greene St. Columbia, SC.29208, USA ' School of Business, Department of Accounting and Business Law, College of Charleston, 6 Liberty Street, Charleston, SC. 29424, USA
Abstract: The objective of this research is to create a strategic framework for logistics cost in the manufacturing industry. The purpose of this document is threefold: a) to identify in detail the main components of the logistics cost; b) to create a general map of the logistics cost for the manufacturing industry; c) to explain the practical and analytical implications of the proposed model. The authors found several models that help the industry to select their suppliers when the main decision driver is cost. In the manufacturing industry, the number of suppliers and the selection criteria is broad and complicated. Flexibility, lead time, quality, and finally cost are common drivers that companies use to select their suppliers. Most commonly, cost represents an important element, but not a critical one. By gathering information about logistics cost, companies can increase efficiency and control their real manufacturing cost.
Keywords: manufacturing cost; logistics-cost; cost structure; supply chain; non-manufacturing cost; Delphi method; accounting system; direct cost; indirect cost; fixed cost.
International Journal of Logistics Economics and Globalisation, 2020 Vol.8 No.4, pp.285 - 308
Received: 20 Mar 2020
Accepted: 04 May 2020
Published online: 30 Apr 2021 *