Research On The Logistics Costs Control Of Manufacturer

With the development of economical globalization and the intensity of competition, logistics is now regarded as the"culminating margin of cost reduction"which means the third profit source following reducing resources consumption and enhancing productivity. On the contrary, the potential of the"first profit source"—to lower the cost through raise productivity , reducing labor consumption, and the"second profit source"– mechanization and automatization , is becoming slimmer and slimmer.During a quite long period, our national enterprises pay their attention more on production, less on logistics, as a result the cost for logistics very huge. Related statistical result shows that the our national manufacturers are spending 5% of their time in production while 95% in storage, charging and discharging, waiting for processing or transportation. The average direct labor cost occupies less than 10% of the total cost while logistical expenses occupies 30-40% of the total cost. The total national logistical expenses occupies 20% of the GDP while in USA, the proportion is below 10%.We can read from the above data that the high logistical cost of our national enterprises is hurdling them from participating the global competition. Our national enterprises must reduce the logistical cost through an effective control to actually enable the logistics to become the third profit source.Though the concept of logistics was introduced in the 80s of 20th Century, and our scholars did achieve some progress after hard research in the past 20 years, our study on logistical cost control is still on primary stage, thus there exist quite a lot of defects in the conception, theory and practical application.Therefore, the essay illustrates the composition of logistical cost, main theory , influential factor and character by introducing the logistics, logistical cost and the control on the cost, followed by the analysis on the issues existing in our national enterprises on...