A Study On The Cost Control Of Logistic Firms Under The Environment Of Supply Chain Management

The development of China's logistic firms under the environment of supply chain management is a key issue. Serious crisis will occur to China's logistic firms if they can't adapt themselves to the new supply chain management innovation and accordingly adopt reforms of their supply chain management, especially the logistic market competition certainly becomes more and more intensive due to the entry of foreign logistic firms after China's entry into WTO.This paper aims at investigating the interior relationship between supply chain and logistics, and introducing the fundamental theory of supply chain management. It has been highlighted that how the logistic firms control their operation costs has become more and more important.Specifically, in order to survive in the intensively competitive logistics market, logistic firms are required to establish certain costs control objective and strengthen their costs management from the perspective of supply chain management. The traditional costs management method mainly applies to manufacturing firms, which therefore isn't naturally suitable for the costs management for logistic firms, especially causes misleading decisions. Therefore, this paper compares several costs management methods and their advantages and disadvantagesBased on the present condition of logistics sector in China and abroad, ABC (Activity-based costing) theory is emphasized in this paper, especially their theoretical principle and application method, including the fundamental theory of ABC, the system of ABC, and the application steps of ABC.This paper includes five chapters. In the first chapter, our research topic is introduced. The second part introduces the basic concepts of supply chain and logistics, and also analyzes their interrelationship. The third chapter investigates the costs composition for logistic firms as well as their characteristics. In the forth chapter, advanced costs management theory is introduced, and in the next chapter a case study is also made on the advantages of ABC method. The final part is our conclusion and suggestions, including the application scope of ABC (Activity-based costing)method.