Optimization of Logistics Costs and Production Costs in Increasing Company Profit at PT. Perkebunan Nusantara IV Regional II

Abstract

This study aims to analyze the role of logistics costs and production costs in increasing company profits, particularly in the context of PTPN IV Regional II as a large agribusiness company. Logistics costs and production costs are the main components of the operational cost structure that directly affect the company’s profitability. Logistics costs include transportation, warehousing, and distribution expenses, while production costs cover expenditures on raw materials, direct labor, and manufacturing overhead. This study employs a qualitative approach using a descriptive analytical method based on a collection of relevant recent scientific journals. The research data were obtained from the financial statements of PTPN IV Regional II as well as interviews with the logistics and finance departments. The research period covers the years 2020–2024. The analysis was conducted by examining the development of logistics costs, production costs, and company profits, as well as the optimization of these variables based on the available empirical data The study results indicate that the optimization of logistics costs and production costs plays a significant role in increasing company profits. The company demonstrates the ability to manage its cost structure efficiently without hindering sales growth, resulting in a sustainable increase in net profit. Research in manufacturing companies also confirms that an increase in production costs tends to reduce net profit if not balanced with appropriate cost-efficiency strategies, while the optimization of logistics costs through improvements in the supply chain structure contributes positively to financial performance and company profitability by reducing waste and unnecessary distribution costs. The conclusion of this study emphasizes that cost optimization is not merely about cost reduction, but rather about effective and value-added cost management. This research is expected to serve as a consideration for the management of PTPN IV Regional II in formulating cost control strategies, as well as a reference for future research in the fields of cost management and logistics in the plantation industry.