Cost savings is one of the goals that any company that wants to increase its level of competitiveness in the market sets, this includes full knowledge of all the factors that contribute to their formation.
calculation-and-evaluation-of-the-logistics-costs-in-entities-of-oil-services-in-cubaAs part of the strategies used for the implementation of the new Cuban economic model, the present work was carried out , with the main objective of proposing a procedure on scientific bases that would allow the calculation and evaluation of the logistics costs associated with storage, using the methods, Fundamental techniques and tools (surveys, interviews, method of selection of experts, brainstorming), emphasizing the existing problems to outline the guidelines in updating and monitoring the prevention plan.
Among the main achievements achieved by this work is determining that the percentage of volume use that all warehouses have is low, which means that a reorganization would minimize rental expenses, preparing the logistic costs item associated with storage, as well as the cost sheet of the personnel who are directly involved in the formation of the hidden costs, identifying when carrying out the calculation of the storage costs that these remained around 4.39% of sales, as is established for high-performance companies and the proposal of the action plan to reduce inventory levels of idle and slow movement in the entity.
Introduction
In today's world, companies cannot survive simply by doing a good job; they have to do an excellent job, if they want to succeed in a market characterized by rapid growth and stiff competition, both nationally and internationally. Consumers and companies find themselves with a great abundance of offers, seeking to satisfy their needs and therefore, seeking excellent quality, added value, or cost when they choose among their suppliers.
Companies today are required by the environment in which higher levels of efficiency operate, which translates into lower costs.
The new competitive reality presents a battlefield where flexibility, speed to market and productivity will be the key variables that will determine the permanence of companies in the markets. It is here where logistics plays a crucial role, from the efficient management of the flow of goods and services to the final consumer.
The logistics concept that is applied in companies is characterized by playing a role of integration of activities that have to do with ensuring a flow aimed at supplying the customer with the products and services that they demand at the time they demand it, with the quality demanded and at the cost you are willing to pay.
Logistics includes both the flow of materials of a company and the flow of information, which is associated with it. In order to manage it properly and optimize both the cost and the service offered, it is necessary to exercise good control over the company's activity, knowing, in the most agile and simple way possible, both the current situation and the evolution of all the functions that concern logistics and, consequently, affect the service or its overall cost.
Today, business strategies must acquire new perspectives, in which both product development times and customer delivery times must be closely linked to the demands of a market that depends on the personalized needs of the end user.
These new requirements impose on current logistics systems the need to be able to design and develop products, processes, services and information systems, whose priority objective is to improve speed, flexibility of response to the particular needs of customers and offer an increasing quality of service. In addition, they need to establish integrated supply chains that go from the supplier of raw materials to the end user of the product or service, and where each supplier-client relationship forms a step in which the different subsystems must be endowed (with a technical element and organizational) that are part of the supply chain with the necessary flexibility to respond appropriately to variations that occur in customer demands.
Nowadays, the opening of the economy, the rapidity in technological changes, the appearance of new markets, product innovation, among other aspects, require forms of management that, with the least possible cost, can allow a rapid assessment and consequently exercise a efficient management of available resources.
There are oil entities in this environment that are dedicated to the services of Drilling and Capital Repair of Oil and Gas Wells that have high inventory levels valued at $ 33,000,000.00 pesos, of these, it has been estimated $ 10,000,000.00 pesos of slow movement and idle, which brings negative consequences that are reflected in the immobilized money because the stored products are specific to the activity, making it impossible for them to be sold to companies in other sectors, this generates a loss file due to having to make a final destination for raw material where the weight is calculated and not the cost of the product. Adding to this situation is that the company does not independently record the cost of maintaining that inventory,incurring logistics costs that you do not know and have not identified (storage, purchase, transportation).
Taking into account all the aforementioned and the importance of research in the oil sector, the following scientific problem to be solved in this diploma work is taken as a starting point: the non-existence of a procedure that allows the structuring of costs logistics in oil service entities.
The storage process as part of the logistics system
Before 1959, the development of material handling and storage was subordinated to weak industrial development and high economic dependence and geographical proximity to the United States, the fundamental supplier of the most necessary rules.
The internal market was dominated not only by North American manufactures, but also the main industries of the country; the manipulation was focused almost entirely on transportation controlled by private firms; warehouses were limited. Industry at the national level did not even need to pay attention to this aspect.
Nowadays talking about warehouses or storage is something very complicated; Scientific advances have taken these terms along many paths, losing the logistics of this discipline, their heritage. In the present work, the warehouse will be referred to as a technologically equipped facility to carry out the storage process.
Several authors have given their definition of storage, below are some:
Storage is the set of activities, means and resources of the company that are dedicated to the reception, ordering, care, conservation and control of products from the moment of their acquisition / completion until their consumption or making them available to others; providing the suitable space for the conservation of the merchandise, an economically coordinated system for the activities necessary to carry out with them, facilities and workforce, and a complete control of all this function. Apple (1972); CEATM (1984)
Storage is a process within the logistics chain whose essential aspect is to protect goods and deliver to each subsequent link in the chain, in the form and with the added values demanded by each specific process Velázquez Albiol (2005)
Traditionally, the basic activities of storage have been: reception, identification and classification, preparation for storage, storage, order preparation, completion and accumulation, productive services or preparation of parts and components, packaging / packing, loading, dispatch, maintenance of control records.
The basic resources of personnel, equipment and space have to be integrated to obtain effective and economic methods and systems for the handling, storage and control of materials and supplies. All of which can be summarized in offering the highest quality of service at the lowest cost.
Logistics as a tool to reduce costs
Their subsistence as an economic system will depend on the ability of companies to achieve a greater decrease in costs, and to achieve this goal, the use of the tools provided by modern sciences will be essential in their daily activities.
In the development of the economy of any company, aspects constantly arise that involve the control of activities of the flow of materials and other resources associated with it, whose scientific study of the organization and control systems are part of Logistics. Jenkins (1995); Ballou (1997); Comas (1996); Pérez Campaña (2005).
The potential economies of Logistics are significant, as it can present between 30% and 70% of assets, around 10% of sales, and 50% of added value. Barrabas (1996).
And although it is not easy to accurately determine logistics costs, the sources consulted place them between 10% and 50% for sales, and between 15% and 40% of the total cost of the product, with transport and storage activities being more important.. These percentage values vary depending on the countries, industrial sectors, types of companies and parameters that are taken as the basis for their calculation. Badenas (1993); Rizo (1987); Caramelle (1989); Mira (1991); Hernández Maden (1999); Pérez Campaña (2005).
From another point of view of this situation, in many industrial companies, the storage (waiting), handling (movement) and transport phase exceeds 50% of the product treatment time, which closely links logistics with the concept of flow, involving the teams, command and management as the three major participating factors; These are the determinants to achieve the reduction of costs and the increase of profitability.
Therefore, for every company to be efficient and effective, a logistics system is needed that is capable of minimizing all costs related to the transportation, storage and distribution of its products.
This is somehow associated with the fact that companies have realized that in addition to direct, highly controlled costs from the production process, there are added costs such as inventory maintenance, storage, transportation and distribution costs that if If they are not controlled, they can produce an inflation effect that leads the company to lose its competitiveness. Hernández Maden (1999); Pérez Campaña (2005); Gomez (2009).
The process of cost is only the part of the value that is imposed in practically every effective production process of merchandise, since the circulation process is in charge of constantly reversing the form of merchandise that this part of value presents to the capital form. productive, where the cost price of the merchandise has to constantly rescue the consumed production elements to produce it. The analysis of the cost - volume - profit relationship depends on a careful segregation of costs, according to their nature, in constants and variables.
Logistics costs as part of the cost system.
Costs in relation to expenses have the following characteristics:
- The set of expenses is considered as a whole, and costs as a part of them. Another way of explaining costs is to indicate them as expenses applied in the process of obtaining goods or rendering services. That is, costs constitute payments to inputs or also the remuneration to the factors that intervene in the operation process.
During this process, a cost can be differentiated from an expense taking into account that the cost exists when goods or services are obtained, when buying and not processing a good or service, the cost of operation disappears and only the cost of purchase remains, and finally that the expense that was and continues to be after choosing to buy and not process was always an expense and never becomes a cost.
By observing the income statement of a company, the most important elements of costs and expenses are identified
Statement of income
Sales revenue
(-) Sales cost
= Gross Result
(-) Expenses
= Liquid Result
Cost of Sales (Cost of production sold)
Direct materials
Direct labor
Indirect manufacturing costs
= Production cost for the period
(+) Initial inventory of products in process
(-) Final inventory of products in process
= Cost of finished production
(+) Initial inventory of finished products
(-) Final inventory of finished products
= Cost of production sold
Expenses
- Administration Expenses Distribution and Sales Expenses Financial Expenses
Logistics cost is defined as the sum of the hidden costs involved when moving and storing materials and products from suppliers to customers.
These hidden costs that are generated during the logistics process (process of moving and storing materials and products from suppliers to customers), are related to the efficiency and effectiveness of said process (and its measurement of productivity), quality, etc.
Classification of logistics costs derived from storage
· Cost of Space
Space cost is understood as the set of expenses derived from the use of an enclosure where the products are stored. The cost structure for this concept will acquire very different configurations depending on whether it is the use of an own warehouse or a rented warehouse. The main concepts involved in said cost are listed below:
· Cost of the facilities:
Facilities costs are defined as the set of investments made in items used in the premises where the products are stored, with the aim of improving their storage capacity and facilitating the handling of loads. This cost is directly linked to the cost of space, being considered in many cases as another of its components, since it has many common concepts with it. The most common investments in fixed installations are usually: Shelves, Rotary warehouses, Docks, ports and shelters, etc.
Fixed installations with a large investment volume that are directly related to storage will also be included in this section. Like the costs of space, the importance and structure of this cost can take on very different configurations depending on the type of facilities used. As the degree of automation in a warehouse increases, these costs become significant and complex.
· Handling Costs:
Handling cost is understood to be that corresponding to the resources used, both human and technical, to cover this work in the warehouse. The technical means include forklifts, order picking trucks, as well as any other equipment that directly affects an improvement in handling and maintenance results, such as roller tracks for the preparation or transfer of merchandise; packaging, baling, labeling machines, etc. The use of these means is intended to improve and rationalize the systems, with positive repercussions in achieving more adequate handling times.
· Hidden costs
The stocks that make up the inventory are subject to various circumstances that entail a loss of their real value.
It is clear that establishing the objective of reducing the cost of storage to the maximum is simply an incomplete expression, since, as we have seen, this cost is made up of several factors and that they are incurred with greater or lesser intensity by the fact of developing this activity or function. It follows, therefore, that a cost reduction policy must be formulated in such a way that it establishes the limits and objectives that are intended to be achieved with it, directly relating the cost of the function to the services provided by it .
General description of the logistical operations luxury of OIL SERVICES ENTITIES
Logistics flows of ENTITIES OF OIL SERVICES
The company provides oil and gas drilling and repair services to satisfy national demand. Different systems intervene in this process that guarantee large-scale production. In this process, the logistics process is essential, in which there are elementary logistics flows that they interrelate with each other allowing the chain to develop in a general way.
Information Flow
The flow of information of the logistic chain of the ENTITIES OF OIL SERVICES begins from the demand of an area through an email for the balancer, it reviews through the computer system (Purchase Plan) the stocks, in case of If it does not exist, model 805 is issued, which is a product request to the company's purchasing department. The Purchasing Group sends this model in printed and digital form to the importing company (SUPPLY ENTITY). The importer sends the request for offers to the supplier portfolio by email, when they send the offers, after conducting a concurrency analysis, the chosen one is sent by mail to the technical department for the technical evaluation. After the offer is approved, the approval process proceeds,signing and execution of the contract. Subsequently, the process of moving the merchandise to the destination occurs, where periodic calls are made during the crossing process to verify the status and conditions of the journey.
When the product is at the destination, customs procedures are carried out by the importing company, this includes review of shipping documents and legal documents. Once all the documentation has been verified, the management with the transport company is carried out through an official transport request or by phone, contacting the person in charge of this activity at the transport company, this management includes the delivery of the documentation as a letter. freight, commercial invoice and specific information on the place and time of collection of the product.
Once this management is completed, the product is transferred to the company's warehouse, where the reception of the supply is made by making a direct relationship with the balancer who is in charge of supplying the code, description and level of rotation of the same.. Then the warehouse operator compiles the reception report through the computer system (Mistral). Then the balancer assigns the product to the area that made the demand through the Purchasing Plan system.
Material Flow
Part of a need for a certain area, so a review is made to see if the product is in the warehouse if it exists, it is assigned to the area where the need arose, but if the existence of this is null, we proceed make the request to the importing company, which is in charge of carrying out all the procedures with the suppliers to manage the product, when the contract is signed, the transfer of the product from its place of origin to the destination agreed by the parties begins, from there it goes to the warehouses of the importing company and later they are transferred to the entity's warehouses. When the product arrives at the warehouse, it is received where the balancer who made the request for the area where the need arose, is in charge of saying the code, the warehouse,the description with which the product will be given as well as the level of rotation, consumption norm and classification that will be given to it. When the product is in storage, the balancer assigns the product to the area, from there the warehouse issues a product exit voucher and the area transfers it to the place where it will be used.
Financial Flow
In the logistic process after the request is sent to the importing company, expenses have already started to be generated by market research, since expenses are incurred throughout the process of searching and selecting suppliers, sending a request for offers to the international market, as well as the communication that needs to be established in these cases. Once the supplier with which the purchase is to be made has been selected, management expenses begin, since it includes the approval of the offer, analysis and signing of the contract and the management with the transport company that will carry out the transfer of the commodity. When the product comes into the hands of the importer, the process of accounts payable to the supplier begins as it has to comply with what is agreed in the contract.Afterwards, expenses are incurred for the reception, storage and transportation of the products, and finally, the process of accounts receivable from the end customer is carried out through vouchers from the warehouse with the price in the present and the amount to be extracted from it. a discount from the budget assigned by the area for the different expenses of the month. Taking into account that through the analysis of the process, the identification of the bank of problems that can affect the performance of the organization can be given a more specific character, the relationship diagram of the logistics process is used as a complementary element.
Existing relationships from logistics flows
Material Flow
- This flow is represented by the transfer of merchandise that is carried out from the supplier to the buyer by maritime transport. There is also this when the merchandise is transferred from the port of Havana to the warehouses of Guanabacoa. From the warehouses of Guanabacoa to the warehouses OF OIL SERVICE ENTITIES In the entire process of reception, handling and storage of merchandise Finally in the process of leaving the warehouse towards the client, in this case the direction of drilling of the OIL SERVICE ENTITIES
Information flow
Between 1 and 2: Product Request. Technical characteristics. Clarifications. Approval or Rejection of offers. Offers for Technical Approval. Notification of opening of packages. Compliance with merchandise
Between 2 and 3: Request for Offers. Technical characteristics. Offers. Clarifications
Between 2 and 4: Request for Offers. Technical characteristics. Offers. Clarifications. Purchase and sale contract
Between 3 and 4: Sales contract
Between 4, 5 and 6: Contract sale
Between 4 and 7: Commercial Invoice. Bill of Lading. Packing list. Certificate of origin. NA (No. According to the Board of Directors of Foreign Exchange)
Between 4 and 9: Merchandise Insurance Contract
Between 10 and 2: Inventory Level Certification. Notification of opening of packages
Between 1 and 10: Inventory Level
Financial Flow
At any point in the logistics chain that there is a flow of material and information, there will be associated expenses: expenses on computer media, expenses on office supplies, telephone, email, Internet expenses, fuel costs for transportation, current expenses electric. In this case, since the merchandise leaves the port of Halifax, it is generating an account payable by the importing Company (charter contract and purchase-sale contract). There is also a flow of money between SUPPLYING ENTITY and OIL SERVICE ENTITIES (4% for imports). Expenses are generated to transport the merchandise from the warehouses of Guanabacoa to the warehouses of the OIL SERVICE ENTITIES.Once the merchandise is part of the inventory of the company's warehouse, it generates expenses.
Methods and materials
The current scenario in which companies operate, it is evident that it requires a greater capacity for response and intelligence on their part; a high dose of proactivity, agility, creativity, innovation, competitiveness and effectiveness in their performance. A change, focused on full recognition, of the importance of the external client and very especially the internal client, with the maxim of adding value.
The development of the appropriate or adequate costs of a logistics system is based on the approach that is provided or oriented to them, that is, in essence, directing efforts towards the identification of associated costs. Logistics costs group all the costs attached to the functions of the company, which control and manage material flows and their associated information flows. It should be stated that the development of costs is one of the most critical activities in the design and operation of logistics systems and is also the one that presents the greatest difficulty, partly due to the lack of definition or understanding of the structure of costs that affect the behavior of a system.
The general procedure for calculating and evaluating the logistics costs associated with storage in OIL SERVICES ENTITIES, developed in Figure 1, has been developed based on the need to respond to the problems manifested in this research, taking as references the approaches on management and improvement of processes proposed by Negrín Sosa, (2003); Gómez (2009), investigations carried out on logistics costs inside and outside the Portal Rueda sector, (2009); Gómez & Mentado, (2010), and the results of the bibliographic review of different instruments and tools presented in Chapter 1 for the study of logistics costs associated with storage, with which the author of this research fully agrees.
The stages that make up the proposed procedure are detailed below:
Stage 1. Analysis of the work projection.
The implementation of the logistics cost system must be an action supported by senior management, the logistics management group, accounting and others involved, since regardless of whether the former is responsible for the process where the study is carried out, it is necessary their motivation, understanding and support, so the topic in question will be reviewed proposing a work schedule. At this stage, the director is interviewed to find out his willingness and that of the other members to participate, collaborate and support the research. Once the interests are known, the work projection will be prepared with the objectives, activities and execution deadlines, as well as the allocation of the necessary resources to ensure the investigation.
Figure 1. Procedure for calculating and evaluating the logistics costs associated with storage in OIL SERVICES ENTITIES. Source: own elaboration, from Gómez & Mentado (2010)
Stage 2. Formation of the team involved in the design of costs for the process.
It is recommended that all personnel in the process where the system is to be implemented, people from the areas of logistics, accounting, production, computing and other areas, participate in the detection of the elements to carry out the measurements.
By involving staff, rejection of change is minimized, awareness of the need for implementation is realized; therefore, there is active participation and a correctly oriented attitude according to the objectives of the system, of the workers. In this first step it is important to train personnel with the basic concepts and objectives of the logistics cost system. The selection process of the work team is based on expert analysis, and they must be carefully selected to guarantee accurate and correct judgments based on the problem to be dealt with. The selection of the work team is carried out through techniques where those determined by their experience and conditions guarantee the work and the results of the investigation,For this, a survey will be applied that assesses the proficiency coefficient of each one proposed to join the team. The proposed procedure consists of three phases that are: constitution of the pool of possible experts based on the proposal of those involved; survey battery application: expert competence questionnaire, degree of authority; processing and selection based on the index of expertise. In this initial stage of the procedure, it is essential to establish flexible and agile coordination and communication mechanisms between the work team and the person in charge.survey battery application: expert competence questionnaire, degree of authority; processing and selection based on the index of expertise. In this initial stage of the procedure, it is essential to establish flexible and agile coordination and communication mechanisms between the work team and the person in charge.survey battery application: expert competence questionnaire, degree of authority; processing and selection based on the index of expertise. In this initial stage of the procedure, it is essential to establish flexible and agile coordination and communication mechanisms between the work team and the person in charge.
After verifying the agreement and consistency of the experts' judgment at this stage, the detailed program of the activities and execution times will be designed, as well as the allocation of the necessary resources to ensure the investigation. The project must be technically and academically conducted by a professional well versed in the subject. It is her responsibility to monitor and control the tasks and the times set for executing them, to be present in the team's work sessions without participating in the discussions, to prepare summaries of each session, to integrate and reconcile the conclusions of the groups.
At this stage, the diagnosis will be carried out to evaluate the conditions of the entity for the conduct of the study, which will be based mainly on the checklist, annex 1, specific to warehouses established by Cupet, the self-control guide appropriate to the entity that establishes the Resolution 60/11 CGR in the component control activity in the aspects to be verified in the standard "Documentation, timely and adequate registration of transactions and events", regarding the inventory subsystem, annex 2.
Stage 3. Review of the current cost system.
At this stage, a review of the current cost system will be carried out, analyzing the characteristics of what exists, what data on logistics costs can be provided by the existing accounting system and what others are owned by the different groups, collecting them with full agreement between the members. from senior management on the definitions of the categories and elements, and then design the logistics cost system. For the previous costs that already exist in the company, the form of presentation and its frequency must be known, as well as those responsible. Likewise, this stage must be completed with the logistical cost ratio that the current system does not supply. The review of historical data, manuals and other existing documents in the entity will be used,With the analysis and synthesis of these documents, a diagnosis of the current cost system will be made.
Stage 4. Proposal for the logistics cost system.
In this stage, the logistics cost categories that are feasible and adaptable to the conditions of the company will be defined, which will be carried out with a teamwork session, supported by the brainstorming. Once the categories are established, the cost elements corresponding to each of these will be identified, taking into account that each area of the company must have its own elements, which must have been identified considering who their customers are, what their product is., and what are the specific activities generated by the elements of the cost system. In this way, a measurement system designed according to the nature of the company is produced.
This stage is materialized through 3 fundamental moments that are described below:
Identification of the clients of the process and their needs.
Customers are all users of the product and / or service, as well as any process that dictates specifications. If each process does not identify the range of clients, your product and / or service will be generated with defects. In this step, the work team must identify the group of clients that influence the logistics costs associated with storage and their respective needs, relying on the data held by the quality management group, the company's planning system, the center of control and the accounting group to later determine those of greater weight, using the consensus of the experts.
Identification of the elements of the logistics cost system associated with storage.
In this step, the elements of the logistics costs system associated with storage that can integrate the cost item are identified and related for their selection.
Organization of the elements of the logistics cost system.
Once the previous steps have been carried out, the different elements identified by each type of category must be organized. After completing the application of the technique, the next step would be taken. Before knowing how the information of a logistics cost measurement system should be presented, how often the report should be rendered and how the pertinent analyzes should be made, it is necessary to know how to quantify logistics costs and to whom this responsibility should fall.
At the same time as progress is being made in the management of logistics costs, it is necessary to develop the documentation of the procedure to be followed, when this program is implemented throughout the organization. The internal procedure of the logistics costs associated with storage allows describing all the elements of these to be used, defines how and when the data must be collected or estimated, the formats established for the registry, also defines the comparative bases to be included, in addition to it requires responsibilities for the execution of the requirements. This procedure will provide refinement of cost accounting details for better financial management. Indicators deemed necessary for the analysis of cost behavior can also be added,all this in order that the activities in this regard are organized in the company to facilitate the calculation and evaluation of these costs.
Stage 5. Calculation and analysis of logistics costs associated with storage.
At this stage, the calculation of the storage ratios described in section 1.6 of Chapter I will be carried out. The different elements determined to integrate the cost system resulting from stage 4 will be calculated, which will be analyzed and presented in the form of a report. to the top management of the company. For this, the computer spreadsheets (EXCEL) will be used.
Stage 6. Presentation of results and proposals for improvement measures
The presentation of the results will be made in the form of a report to the senior management of the company which will be defined by the work team. Proposals for improvement will also be presented for each deviation obtained, which will be based on the appropriate strategy, according to the amount of its different items.
Although perfection is obviously the long-term goal, you should not believe that it is the cheapest short-term goal, even in all situations. The most important criterion for evaluating whether the improvement strategy will reach the economic limit is to compare the benefits that could be achieved through specific projects with the costs involved in achieving them.
In summary, the procedure presented, supported by different techniques, contributes to calculating and evaluating the logistics costs associated with storage in the entity under study, providing information for subsequent decision-making that will allow the development of this entity.
Results and Discussion.
Results of stage 1. Analysis of the work projection.
To materialize this stage, an interview was conducted with the entity's director, revealing the interest of senior management in identifying the logistics costs associated primarily with storage. Similarly, it was necessary to listen to the criteria of the head of the accounting group of the company and others of the oil complex where studies of this type had been carried out. Subsequently, the entity's expanded board of directors met and was informed about the process, taking into account their proposals.
From the suggestions collected a work schedule that was approved by the Board and presented to workers in the corresponding morning was drafted, listening to the criteria of these which enriched the schedule being as shown in Annex 3. It defined to make a diagnosis in the area and from the review of the information, identify the most important problems, derived from the key areas or processes and from the recommendations left in inspections, previous audits and internal controls, to define the actions to be taken in for the sake of solving them.
Results of stage 2. Training of the team involved in the design of costs for the process.
The work team was formed from the existing inventory commission in the entity that was approved by Resolution 120/2011 in the company, made up of 18 members. The questionnaire was applied to these 18 members, verifying that they all met the stated condition, that their concordance coefficient was greater than or equal to 0.7
The information collected on the candidates to join the work team was processed, obtaining the values of the competence coefficient.
The work team was made up of:
- Managing Director Deputy Director Main Accountant Operations Director Technical Director Logistics Division Director Balancist Balancist ATM Specialist B
The selected work team was presented at an assembly of workers' affiliates and a training action was carried out in the form of a seminar where workers were imposed on the need for study and their active participation, setting forth their criteria, ideas and suggestions that were taken into account.
It began with the review of the audit reports, in 2011 and 2012 in the entity, which pray in the company's single file to review the signs associated with costs, inventories and the storage system, observing that the excess inventories has been a nonconformity that despite the measures and actions taken has not been resolved.
To check how internal customers perceive the performance of storage management, a checklist was applied. Based on the consensus of the experts, it was decided to establish 4 groups of problems and the results of the responses issued in relation to the criteria submitted for consideration in the checklist were associated with these groups. reflecting the scores obtained with higher incidences for each of the criteria assessed quantitatively, based on the chosen evaluation scale.
- As can be seen, regarding the guarantee of an efficient supply of materials, on a scale of 1 to 5, the respondents stated that the most conspiring difficulty against it, the lack of financing and the little training and skills in the buyers, giving them a rating of 4.7 and 3.8 respectively. Regarding the main requests generated by the purchase of materials, raw materials and spare parts in companies, the experts point out with higher incidences, purchases due to urgent requests for materials, mainly caused by Due to the absence of an effective material and financial forecast, obtaining a score of 4.2, interruptions in the production process were considered frequent due to the shortage of raw materials and materials, impacting negatively,which is reflected in a score of 4.4. Regarding the degree of coincidence between the quantities requested and what is finally acquired, 87.7% of the respondents consider that they have a medium level, this may lead to the achievement of the compliance with the activities planned by the areas. As for timely deliveries, 95% of respondents believe that these are received on time, rarely or never.these are received on time.these are received on time.
After the result obtained, it was reviewed that the entity has identified high inventory levels as a problem and that for this, the materials to be balanced and managed to promote and sell them to other companies have been distributed for charges. It was verified that the entity carries an analysis of the inventory level in the reports it issues, it is observed that in the first quarter of 2012 the company acquired an estimated 5 million in pending resources from 2011, to which the Purchasing area alleges that There is a delay in imports by SUPPLYING ENTITY.
The entity has in its inventory system the classification "technically necessary fixed inventories" that includes the resources that the company uses for fundamental activities. At the end of 2012 the amount of slow moving products stored in this category amounted to 4,192,200.86 pesos. It is observed that the perforation pipes, spare parts for the industrial maintenance of Chinese equipment that have to be available for any breakdown and Packers are the ones that have the greatest incidence in these inventories.
Finally, we proceeded according to the program to apply the self-control guideline of the standard "Documentation, timely and adequate registration of transactions and events" of the Control Activities component where the results were satisfactory in its verification, noting that in subsection " n ”referring to“ Idle inventories due to excess or disuse must be controlled separately, as well as activated and follow up on the procedures for their elimination ”, they are only registered in an independent account, but they are not physically separated, this being in the warehouse restructuring program designed by the entity.
Results of stage 3. Review of the current cost system.
In order to know the current situation of logistics costs, the current procedure in the entity was reviewed, as well as the cost manual, verifying that so far no studies have been carried out in the company with the registered information on logistics costs, In addition, in the sector, studies of logistics costs associated with storage in entities with similar characteristics have been carried out, Gómez & Mentado, (2010) with satisfactory results that have allowed us to draw up strategies for reducing inventories of idlers and slow movement in this entity. The entity under study registers the general cost data, which it sends to Cupet, and of the general total of the companies, the logistics cost is estimated to be very general and not organized by elements.From the review carried out, it was determined that the current cost system has all the conditions to provide the necessary information for the formation of a cost item and its subsequent calculation. Several work sessions were held from which the categories and elements of the logistics costs associated with storage were listed as primary data for the preparation of the cost item.
Results of stage 4. Proposal of the logistics costs system associated with storage.
From the analysis carried out in the previous stage, it was decided to review the elements that intervene in logistics costs, with these data and in a brainstorming session, by total consensus of the experts, the elements of the logistics cost system associated with storage were identified. Based on the nature of the company, these elements were used as a guide to define logistics costs.
The identification of the clients was necessary for the elements of the hidden costs since they intervene directly from the criteria of the main products that they extract from the warehouses for their activity. For this, the automated spending budget system (SISCONT-5) was revised to determine which customers incurred the most in the hidden costs, in this case in the returns, which is an element in which customers have an impact. After all the study described above, the logistics costs associated with storage were calculated and analyzed.
Results of stage 5. Calculation and analysis of logistics costs associated with storage.
At this stage, the calculation of the storage ratios described in section 1.6 of Chapter I will be carried out. The different elements determined to integrate the cost system resulting from stage 4 will be calculated, which will be analyzed and
Technical-Economic Indicators
To analyze the effectiveness of the warehouse economy, it is necessary to calculate technical-economic indicators. The average load per m2 (r) is not calculated in this work. The entity has 6 warehouses, 1 external, 2 rented and 3 of its own. The results of these calculations of the technical-economic indicators are shown in Table 1.
Table 1 Use of Storage activities. Source: self made
| Warehouses | West (External) | Center | Patio hardware | Hardware store | Santa Marta (rented) | Cárdenas (rented) | Total |
| Indicator | |||||||
| Total Area (m²) | 260.00 | 525.00 | 8000.00 | 260.00 | 8000.00 | 8000.00 | 25045.00 |
| Useful Area | 200.00 | 380.00 | 7000.00 | 200.00 | 7000.00 | 7000.00 | 21780.00 |
| % Use of the Area | 76.92 | 72.38 | 87.50 | 76.92 | 87.50 | 87.50 | 86.96 |
| Main area (m²) | 220.00 | 475.00 | 8000.00 | 220.00 | 8000.00 | 8000.00 | 24915.00 |
| Useful Area | 200.00 | 380.00 | 7000.00 | 200.00 | 7000.00 | 7000.00 | 21780.00 |
| % Use of the Main Area | 90.91 | 80.00 | 87.50 | 90.91 | 87.50 | 87.50 | 87.42 |
| Free prop | 5.00 | 5.00 | 5.00 | 15.00 | |||
| Average stowage height | 3.50 | 3.50 | 3.50 | 10.50 | |||
| % Use of height | 70.00 | 70.00 | 70.00 | 70.00 | |||
| Total Vol (m³) | 5601.60 | 3750.00 | 5601.60 | 14953.20 | |||
| Useful Vol (m³) | 1000.00 | 1900.00 | 1000.00 | 3900.00 | |||
| % Use of Volume | 17.85 | 50.67 | 17.85 | 26.08 |
Among the most important costs in the storage process are depreciation, electricity, wages, security, and office supplies and supplies. Taking into account the above, we proceed to analyze them during 2012 in Table 2 and Table 3.
Table 2 Summary of the most important costs of the Warehouse in 2012. Source: own elaboration
| Closing: December 2012 | ||||
| Expense items | Plan | Real | % | Deviation |
| 20,000 auxiliary materials | 19548.96 | 19442.5137 | 99.46% | 106.45 |
| 40000 Energy | 8577.36 | 9563.18096 | 111.49% | -985.82 |
| 50000 Salary | 327771.72 | 322 716,382 | 98.46% | 5055.34 |
| 60000 Social security | 127453.56 | 124290.448 | 97.52% | 3163.11 |
| 70000 Amortization | 178509.36 | 182453.943 | 102.21% | -3944.58 |
| Total | 661860.96 | 658466.47 | 99.49% | 3394.49 |
Table 3 Other Costs. Source: self made
| Closing: December 2012 | ||||
| Accumulated | ||||
| Expense items | Plan | Real | % | Deviation |
| 30000 Fuels | 18499.92 | 8526.91051 | 46.09% | 9973.01 |
| 80,000 Other monetary expenses | 221237.16 | 193896.543 | 87.64% | 27340.62 |
| 90,000 transfers | 0.00 | |||
| TOTAL | 239737.08 | 202423.45 | 84.44% | 37313.63 |
In this it can be assessed that the Auxiliary Materials and Energy component stands out in a decreasing way during the year, over the rest of the other components, which unlike this one, maintain a very similar behavior. The Electricity component maintained a stable trend throughout said year
The Fuel component maintained a stable trend throughout said year. Other monetary cats tended to go up, as well as the transfers.
Hidden costs
The stocks that make up the inventory are subject to various circumstances that entail a loss of their real value. Among the main causes of these losses in the entity under analysis are deterioration, returns and depreciation.
To analyze the incidence of returns on the cost of the warehouse, a cost sheet was prepared for the dependents according to the warehouses and the type of product being handled, as well as the material costs, Table 4.
Table 4. Cost sheet for dependents for returns. Source: self made
| Cost sheet for dependents | |||
| Warehouses | West
Santa Marta Cardenas |
Center, Hardware Store Patio Hardware Store | |
| Office supplies | $ 1.27 | $ 1.27 | |
| Salary | $ 1.99 | $ 1.99 | |
| Other expenses | |||
| Depreciation | $ 16.66 | $ 16.66 | |
| Crane and other equipment rental services | $ 530.00 | ||
| Total | $ 549.92 | $ 19.92 |
When analyzing the Wastes, Faults and Impairments in 2012, it could be seen that these results are given by adjustments according to the established norm, all being in the parameters that did not lead to the opening of files.
When analyzing the returns this year, a total of 932 were produced in the year, with the Center warehouses having a higher incidence with 264 representing 28.33%, with a total value of 28446.98, Patio Hardware with 162, for a 17.38, with a value of 86833.85, Hardware store with 159 for 17.06%, with a value of 26355.86 and in the case of the Santa Marta warehouse it had 64 returns, representing 6.87, however the amount amounted to 24463.9 similar to the Centro warehouse. In the Centro and Ferretería Patio warehouses, the greatest weight was due to the return of augers and pipes, respectively, because the geological objective was not met and the well was stopped. These results are shown in Table 5 and Table 6.
Table 5. Returns made in 2012. Source: own elaboration
| Month: Year-end 2012 | |||||
| WAREHOUSES | Total quantity | Total | % of the total amount | % of the total amount | |
| Center | 264 | 28446.98 | 28.33% | 10.28% | |
| Patio hardware | 162 | 86833.85 | 17.38% | 31.38% | |
| Hardware store | 159 | 26355.86 | 17.06% | 9.53% | |
| West | 158 | 84634.25 | 16.95% | 30.59% | |
| Cardenas | 125 | 25948.74 | 13.41% | 9.38% | |
| Santa Marta | 64 | 24463.9 | 6.87% | 8.84% | |
| Total | 932 | 276683.6 | 100.00% | 100.00% |
Graphic. 1 Representation of the percentage of returns by warehouses. Source: self made
Table 6 Impairments in the Storage activity during 2012. Source: own elaboration
| Indicator | Total |
| Waste, breakdown and deterioration | $ 1121.16 |
| Returns | $ 276683.57 |
| AFT depreciation | $ 108126.14 |
| Total | $ 385930.87 |
As a final result when calculating the item of logistics costs associated with storage, they would be as shown in Table 7:
Table 7. Income statement by cost. Source: self made
| Logistics costs associated with storage | Year 2012 | |
| Space Cost | ||
| Water | 48.91 | |
| Energy | 14211.64 | |
| Telephony (truncking) | 1347.95 | |
| Depreciation | 187 951.50 | |
| Subtotal | 203560.00 | |
| Facilities Cost | ||
| Other monetary expenses | 375187.27 | |
| Transfer | 45094.15 | |
| Subtotal | 420281.42 | |
| Handling Costs | ||
| Office supplies and supplies | 11788.25 | |
| Waste collection and fumigation | 792.30 | |
| Protection and hygiene at work | 6109.82 | |
| ADESA services | 14816.02 | |
| Social Security | 127181.05 | |
| Fuel | 9974.90 | |
| Wages | 339551.92 | |
| Subtotal | 510214.26 | |
| Waste, breakdown and deterioration | 1121.16 | |
| Returns | 276683.57 | |
| AFT depreciation | 108126.14 | |
| Subtotal | 385930.87 | |
| Total | 1519986.55 |
Stage 6. Presentation of results and proposals for improvement measures
Analysis of the results
There is a great variation in logistics costs between some companies and others. Costs for some companies can range from less than 4% for those that produce and distribute high-value merchandise, to more than 32% for companies that distribute low-value products.
Table 8. Income statement by cost. Source: self made
| Logistical costs associated with storage | % of Total costs |
| Space Cost | 13.39% |
| Facilities Cost | 27.65% |
| Handling Costs | 33.57% |
| Hidden costs | 25.39% |
| Total | 100.00% |
Firms that include manufacturing processes generally experience logistics costs of between 10% and 15% of their sales, while only marketing companies have costs of around 25% of sales. These costs do not include the cost of the products that are purchased, which represents 50% of sales on average.
Graph 2. Representation of the percentage of returns by warehouses. Source: self made
If the cost of these products were reflected in the logistics, this would become the most important area of the company in terms of cost absorption.
Taking into account the aforementioned, the percentage that represents the storage costs with respect to sales is calculated, in the case of warehouses ENTITIES OF OIL SERVICES, in the period analyzed, yielding the results that shown in table 9.
Table 9 Percentage representing storage costs with respect to sales. Source: self made
| Year 2012 | Storage Costs | Sales | % | |
| 1519986.55 | 34632841.66 | 4.39 | ||
In them, it can be seen that in 2012 the storage costs were kept at around 4.39% of sales, a parameter in which the aforementioned cost should fluctuate in this Company, since it is an area belonging to a producing company that stores and distributes high-value merchandise.
Despite this result, the work team determined to propose an action plan to resolve the existence of high levels of idle and slow-moving inventory, among which the following are included as fundamental actions:
- Restructuring work commission for the analysis, purification and reorganization of inventories in the Company. Debugging of the functions of the group of Balancistas Correction of descriptions of the products that are part of the inventory in the Mistral Stock Review of doubtful consumption standards, inventory of slow movement and identification of obsolete inventories to sell to Raw Material and other Companies Define purchases plan 2013 -2014 of second priority that can be contracted in the second half of 2013 and arrive in the 1st quarter of 2014 affecting the 2014 budget Take as a base the level of material consumption 2012 for the actual execution of the services performed in the year except drilling and according to the 2013 service plan, an inventory level is defined for its execution
Conclusions.
- It was defined that due to the characteristics of the entity, the related storage costs can be calculated in four large groups, which are: Cost of Space, Cost of Facilities, Cost of Handling and Cost of Holding Stock, together with some Hidden Costs. with its respective elements. It is low the percentage of the use of the volume that all the warehouses have, so a restructuring of the spatial distribution of these can contribute to the entity to stop incurring approximately 16,000.00 pesos per month for rent to minus one warehouse.When calculating costs independently, the percentage for each of them was obtained from the general total, for the Cost of Space 13.39%, Cost of Installations 27.65%, Handling Costs 33.57%, Hidden Costs 25.39% During 2012, storage costs were maintained at around 4.39% of sales, as established for companies that market high-value products. A proposal for an action plan was prepared to reduce idle inventory levels. and slow movement in the entity with 6 shares.
recommendations
- Due to the importance of logistics in companies like this, it is suggested to look for an alternative that allows classifying storage costs within the accounting system. Use research as a source of consultation to teach the subject of logistics costs within the degree course. of Accounting and Finance Extend to the other entities of the Cupet system the procedure for calculating the cost of storage, with the appropriate adjustments, so that it serves as a basis for the study of logistics costs and their reduction within the framework of the economic model Cuban.Increase the training of warehouse workers and the Logistics Division in general, to increase knowledge about the topic.
Bibliography
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