International Logistics Cost Analyses And Improvement Strategies Research Of JB Electronic Company

International logistics is developed with deep development of globalized economy while logistics cost is occupied high portion of product cost, thus logistics cost control is attracted high attention. Efficient logistics cost control is creating profit for enterprises. The logistics cost quotation is even a part of high margin of product quotation.JB company is a multinational company to provide electronics product assembly service, performing international logistics operation. With business expansion and development, Logistics cost of selling amount is increased to 1.35% in 2009 while it is 0.85% in 2005, JB is endeavoring logistics cost reduction via improving the logistics network. This study is focusing on improving logistics flow and operation to reduce logistics cost considering industry background, JB company development condition, supply chain and logistics network. In the analysis, main methodology as following:1) Classified the logistics cost according to charge type, including air freight, ocean freight, inland freight, clearance charge, storage charge, duty.2) Use Activity Based Classification, 80/20 principle, Cause & Effect/Fishbone Diagram to identify the major root cause for high logistics cost.3) Considering transportation mode, Inco-terms, clearance mode, government policy for import and export, the logistics cost was evaluated and seek for improvement solution.The major improvement solution for this dissertation is to select right transportation mode to perform delivery, to optimize and develop transportation mode to reduce the logistics cost.The air shipment mode via GZ airport and inland shipment mode via domestic logistics park was explored and analyzed with JB shipment data, it is stated that air shipment mode via GZ airport can't reduce JB logistics cost, inland shipment mode via domestic logistics park can't applied to all cargo with COO of China which is constrained by customs import/export policy and total logistics cost. HK customs clearance cost reduction is analyzed and explored by doing"transshipment"as well in this study.JB logistics cost was improved greatly with the logistics solution explored in the dissertation according to current international logistics situation. The methodology used in the dissertation can be applied to other company logistics cost control, can be used as case study for university during teaching.Dissertation highlight of improvement solution through study: 1) Referring to study result from formers, and applied to study 2) Analyzing cost by JB detail logistics data3) Applying inco-terms to logistics study)4 Deeply analyzing the relationship between transportation mode and logistics cost, explore new transportation mode to meet the delivery demand.