The Logistic Costs and their Role in Supporting the Competitive Advantage of Industrial Firms (A Study in the Iraqi Carpet and Furniture Company for the Period 2012-2016)

• Published in: Webology Vol. 19; no. 1; pp. 6237 - 6245
• Main Authors: Abboud, Abbas Hadi, Mahdi, Zainab Hadi, Hussain, Baraa Bazawiy
• Format: Journal Article
• Language: English
• Published: Tehran Dr. Alireza Noruzi, University of Tehran, Department of Library and Information Science 01.01.2022
• Subjects: Competition; Competitive advantage; Customer services; Logistics; Iraq
• ISSN: 1735-188X

The Logistical costs are an important factor in the competitiveness of any country and any company, and given the acceleration of logistical activities over the few decades, countries and companies seek to enhance their competitiveness by reducing those costs which is a basic goal of industrial companies and the main purpose of this study is to shed light on, define the logistical costs, analyzing it and clarifying its impact on the company's profits, the research sample, and its impact on the competitive advantage in the company. The problem of the study is embodied in the high logistical costs and the effect of this on the company's profits and competitive advantage. For the period from (2012-2016) in order to achieve the objectives of the study, the following hypotheses are tested - the existence of a significant relationship between reducing logistical costs and supporting the company's competitive advantage. The sample of the research implies the existence of a significant relationship between reducing logistical costs and maximizing company profits. Moreover the use of the financial analysis of the company's data, the hypotheses have been proven correct, and the study has found that a large part of the logistical costs that the company bears are transportation and communication costs, which in turn affect the company's profits, and the high logistical costs in general and transport and communication costs in particular affect the competitive position of the company. The study suggested the necessity of introducing modern technology in communications and appropriate means of transportation to avoid any risks facing the company as well as obtaining information efficiently and with high accuracy and at the lowest costs and the necessity to develop the cost system in the Iraqi Carpet and Furniture Company so that it can confront cost reduction in light of modern industries.