Cost management in logistics systems using KPI controlling and resource balancing

Abstract

The study’s relevance stems from the growing need for effective cost management in logistics systems amid increasing uncertainty, resource constraints, and the quest for an optimal balance between economic efficiency and service quality. The purpose of the article is to analyze theoretical and methodological approaches to cost management in logistics systems based on KPI-controlling and resource balancing. The following methods were used in the study: analysis of scientific literature - to study the current state of research on the selected issue; system approach – to consider the logistics system as an integral object with interconnected elements of costs, control and resource management; comparative analysis – to compare traditional and modern approaches to controlling logistics costs; structural and functional analysis – to study the role of KPI and logistics controlling in the formation of an effective management system; generalization and systematization – to demonstrate the results of the study. Results. The economic essence and structure of logistics costs are examined, along with the factors influencing their formation in modern supply chains. It was established that logistics operating costs encompass transportation, warehousing, inventory management, and information support, and require a comprehensive approach to their analysis and optimization. It was found that traditional cost management methods are not sufficiently adaptable to dynamic changes in the logistics environment, necessitating the introduction of control tools focused on performance indicators. It was substantiated that KPI-controlling is an effective mechanism for ensuring cost transparency, enabling continuous monitoring of logistics processes and supporting informed decision-making. Methodological approaches to the development of key performance indicators for logistics companies have been characterized, taking into account their specificities and the integration of financial and non-financial indicators. It was established that resource balancing is a strategic tool for optimizing logistics costs by rationally allocating available opportunities within the constraints of specific restrictions and target performance indicators. Conclusions. It was determined that integrating KPI-based control and resource balancing increases the efficiency of budgeting procedures and strengthens cost control by coordinating resource use with the results of activities. The proposed approaches contribute to increasing the overall efficiency and adaptability of logistics systems, ensuring sustainable cost optimization and supporting the long-term competitiveness of enterprises.