The Strategies Analysis Of Logistics Cost Control Of Automobile Manufacturing Enterprises

During the recent years, Logistics Cost Management Theory has been booming in China and has brought out a great change to the situation that the enterprises in China has ever laid more emphasis on production than on logistics. Logistics cost has made up more than ten per cent of the whole production cost in the auto industry and has a direct impact on the profitability of the enterprise and its competitiveness. So it's a significant means to reduce logistics cost for improving the overall quality of China's economy. As a spectacular new industry, modern logistics has been regarded as a new economy increasing point and the third profit source.Since the Chinese Economic Reform, our auto industry has quickly developed by bettering the technology and improving production efficiency in order to gain more profit. But in recent years, there is less and less room for gaining profit by increasing sales figure through reducing production costs and lowering commodity price.. The auto industry has come across the bottleneck in profit increasing which has heavily impeded the further development of China's auto industry. The development of Logistics Cost Management Theory therefore has provided a new opportunity for the auto producer in China. Logistics Cost Management runs through the production process and business activities of the auto industry, so it is a key link in achieving its development target and an index for measuring the overall management level and competitive capacity of enterprises. The Logistics cost management level of auto enterprises in China lags far behind developed countries, which directly affects the profitability and compatibility of auto enterprises. So it is imperative to increase the logistics cost management level for auto manufacturers.This study mainly focus on the control of logistics cost in auto production industry by applying theory analysis and empirical analysis methods. First, it analyses the logistics cost management situation and problems existed in auto industry of China through discussing the development of logistics cost theory and the advanced study in developed countries such as America and Japan. Then it studies all logistics costs existed in every links of the automobile manufacturing in China and emphatically analyses the factors which compose and influence the inventory and transportation cost, finally it analyses the logistics cost existing in other parts of the manufacture and studies the control strategy of it. Finally, we come to the key part of this thesis that is the application of the operating cost method in the automobile manufacturing enterprise. Firstly there is an overview of the operating cost method, then comes the analysis of production logistics process of X car and its accounting of the logistics cost of this process, finally it presents the analysis of this accounting results. Operation Costs Method not only account the logistics costs of manufacture but also monitor the logistic process through the accounting results in a bid to ensure the profit of the enterprise that would be brought by every logistic activity. This paper works on the application of Activity Based Costing used in motor-car industry and on the strategy of logistic cost control.