A Study on Reducing Corporate Logistics Costs and Industries in South Korea

다국어 초록 (Multilingual Abstract)

Purpose: This study classifies Korean industries into homogeneous groups based on the internal and external factor contributing to reductions in corporate logistics costs. It compares the characteristics and the intensity of these factors across industries in the same group and visually explores proximities among them. Research design, data, and methodology: This research exploits data from the Corporate Logistics Cost Survey conducted by the Ministry of Trade, Industry and Energy in 2022. The survey employed a sample of 379 and 103 companies with structured questionnaires and collected data primarily through on-site investigations, supplemented by email, telephone, fax, and online (CAWI) responses. Cluster analysis and multidimensional scaling are applied to classify industries and visualize similarities and differences of the homogeneous grouping of industries. Results: Eighteen industries are grouped into four clusters based on internal factors, and sixteen industries are grouped into five clusters based on external factors on the attributes of reasons of the reduction in corporate logistics costs. The characteristics and relative intensities of each attribute were analyzed and visualized. Conclusions: Corporate logistics costs represent strategic investments rather than simple expenditures. Efficient logistics management is essential not only for reducing short-term costs but also for ensuring long-term stability and competitiveness.