Logistics Cost Accounting and Management in Malaysia: Current State and Challenge

Abstract

Abstract-Logistics cost is an important factor affecting the competitiveness on both macro level (national) and micro level (firms). Logistics cost indicates the performance of logistics industry, efficiency level and its competitiveness. Despite of its significance, current state of logistics cost accounting and management in Malaysia has not properly addressed and the challenges surround logistics cost measurement remains incoherent. Therefore, this study aim to shed light on the current state and challenges of logistics cost accounting and management in Malaysia. This study conducted in two fold which are; 1) content analysis and, 2) survey analysis. Content analysis used to view current state and challenges in macro level with regards the concerned research, while survey analysis used to view current scenario in micro level. This study reveals three major challenges that become a barrier to fully understanding and implementing logistics cost accounting and management. First, there is no unified definition of logistics cost. Second, the measurement and cost component included in the calculation of logistics cost are not standardized. Third, there is a difficulty in collecting information and data both in published sources and direct sources. This study conclude with the importance of having standard logistics cost accounting measurement, which plays a vital role in determining the accuracy of the logistics cost and ascertain the efficiency level of logistics industry particularly in Malaysia.

Impact of Goods and Services Tax on Supply Chain Management

“…The relationship is between a supplier or a retailer and a consumer. Simply put, the main function of inbound logistics is to purchase and prepare products, machinery, and finished goods from manufacturers to manufacturing plants, warehouses or retail stores (Zakariah & Pyeman, 2013). Inbound logistics requires all the activities required at the time of request to make the products available for the operation of the process (Havenga & Simpson, 2014) such as promoting, producing or selling, storing, monitoring of stocks, inspection, and so on.…”

Logistics management requirements and logistics performance efficiency: the role of logistics management practices - evidence from Egypt

“…Regarding the assessment of logistics efficiency, logistics cost plays an important role in achieving competitiveness on both macro and micro levels (Zhao and Tang, 2009;Havenga, 2010;Asian Development Bank, 2012;Zakariah and Pyeman, 2013). However, the selection of appropriate indicator to measure the logistics efficiency is not a trivial task due to the following reasons:…”

“…2 Numerous additional direct and indirect costs related to logistics function and operations should be considered such as custom duties, insurance, carrying costs, ordering costs, stock out costs and capacity-associated costs. In this regard, Zakariah and Pyeman (2013) propose that the majority of firms in Malaysia assess their logistics cost either as a percentage of sales or the absolute costs. Meanwhile, the minority of these firms assesses their logistics efficiency as per sales unit.…”

Assessment of the National Economy Through the Application of Logistics Costs

“…В началото на ХХI век редица известни европейски изследователи (Hansen & Hovi, 2010;Smith & Huber, 2005) възприемат различен подход към изчислението на разходите за логистика, който се основава върху фирмени проучвания и използването на методи за експертни оценки.…”