TRANSPORTATION MODEL AND COST CONTROL IN NIGERIAN MANUFACTURING FIRMS

Abstract

The value of effective cost control in organizations, especially manufacturing companies, cannot be overestimated. Effective cost management creates significant business opportunities. This allows companies to pay off debt, thus reducing the amount of debt into cash. Cost control increases corporate profits and improved profits lead to the purchase of better, more efficient and renewable equipment. The product is delivered at a cost that does not add value in terms of quantity, quantity or quality, but you usually sell the product for a profit. These costs are borne by the manufacturer or buyer by increasing the cost of production or the price of the goods. Manufacturers and service providers are therefore constantly making efforts to reduce shipping costs and the use of transport modeling methods is a strategy proposed by experts. The purpose of this measurement study was to examine the relationship between transportation model and cost control in manufacturing organizations. The number of sample frame includes ten manufacturing companies in Rivers State, Nigeria with 103 participants. The Spearman Rank Order Correlation Coefficient discloses that the use of transportation model has a positive impact on the cost of goods shipped, the quantity of goods shipped and the reliability of delivery.