scope:

Linking the budget to key figures (KPIs in particular) allows a timely deviation analysis. The aim is to actively intervene by planning and introducing the necessary measures (such as reducing or increasing capacities, personnel changes, etc.) at an early stage.

Deviation analyses have the purpose to show if costs (really) get out of hand, or if plausibility exists for (unexpected) deviations.

Methodical action is a prerequisite for a budget. Acting can change the budget.

This guideline describes the systematic of logistics budget planning (LBP). LBP is the logical preliminary step to introducing a logistics controlling system (see VDI 4491 Part 2).

In the first part of this guideline, concepts and processes will be explained by using examples (Section 2).

In the second part, screen shots will give detailed help for preparing an LBP (Section 3).

Section 4 shows the advantages of long-term planning for ensuring the operability of operative logistics units.