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Management by Responsibility Centers: The Features of Application in the Transport and Logistics Business
Kostetskyi V. Z.

Kostetskyi, Volodymyr Z. (2025) “Management by Responsibility Centers: The Features of Application in the Transport and Logistics Business.” Business Inform 8:273–282.
https://doi.org/10.32983/2222-4459-2025-8-273-282

Section: Economics of Transport and Communications

Article is written in Ukrainian
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UDC 65.012.34:657

Abstract:
The aim of the article is to explore the features of applying the responsibility center management approach in the transport and logistics business to enhance its adaptability under conditions of socioeconomic shocks. The article sequentially examines the essence of the responsibility center management approach, namely: the principles of management by responsibility centers; the stages of organizational transformation of the transport and logistics business toward management by responsibility centers; the types of responsibility centers based on two key characteristics: functional features and types of controlled indicators. The specifics of the responsibility center management approach are considered in the context of the transport and logistics industry. This allows us to determine that optimizing the organizational and functional support of transport and logistics companies is a complex, multidimensional process that requires, first, the presence of managerial will from top management, and second, appropriate staffing, since management by responsibility centers demands a higher level of managerial competencies from the heads of such units. The study allows us to conclude that implementing management by responsibility centers, aimed at improving the organizational and functional support of transport and logistics enterprises, should be a systematic process covering a series of structural reorganization steps, including the separation of responsibility centers; designating promising sub-businesses as responsibility centers; and choosing the type and optimal organizational structure for each responsibility center; the establishment of a system of criteria for tracking the economic efficiency of responsibility centers; enhancement of approaches to economically incentivize employees of responsibility centers. The positive impact on transport and logistics enterprises from the implementation of responsibility center management consists in increasing the flexibility and adaptability of their organizational and management systems.

Keywords: responsibility center, transport and logistics enterprise, profit center, revenue center, cost center, freight brokering.

Fig.: 2. Tabl.: 2. Bibl.: 15.

Kostetskyi Volodymyr Z. – Postgraduate Student, Department of Innovation Activity and Services Management, Ternopil Ivan Pului National Technical University (56 Ruska Str., Ternopil, 46001, Ukraine)
Email: [email protected]

List of references in article

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