Xiangxi Tobacco Companies Logistics Cost Control

After entering the 21st century, the development of the world tobacco market has shown a very distinct feature of developing toward corporatization, marketization and privatization. In current world, only a few countries including China are still implementing tobacco monopoly. This article studies the problems of logistic cost control of Xiangxi Tobacco Company and explores the effective means to reduce expenditure and increase benefit of enterprise in Xiangxi mountain area.The paper analyses the company's cost control status and the logistics cost control opportunities. After detailed analysis of the company's economic operation quality indicators by using specialized methods such as radar chart, this paper finds the problems of high expenditures , low profit margins , labor inefficiency, and poor performance, and takes the mountainous environment and the poor traffic conditions as the main reasons. It implies that reducing the logistics and transport costs is the cost-control opportunity. One purpose of this paper is to transforms the company's financial information into logistics costs and transportation costs information with special methods, decompose it according to their characteristics and finally complete the networks description to the company's logistics and transport. This paper puts forward a solution to optimize company's logistics and distribution cost control, to improve logistics and distribution networks and test it's anticipated benefits, concluding that logistics and transport costs should be cut down. This paper Suggests that the company implement cost-control objectives, that the target cost control and overall budget control be connected to reduce expenditure and increase benefit of enterprise in Xiangxi mountain area. The most important work of this paper is to establish logistics cost control model and apply it in real situation based on case study, and then put forward a suggestion to improve current financial report from two aspects of financial accounting and accounting statements.Finally, this paper gives some suggestions that reduce the logistics and transportation cost in the mountain area. First, infrastructure construction such as road station building should be strengthened so as to improve the transportation conditions and to enhance the efficiency of logistics and transportation in mountainous areas. Second, we should take the opportunity of market interests driven to integrate logistics resources, transforming the industry logistics distribution system into the commercial-market logistics distribution systems so as to improve the efficiency of logistics distribution in mountainous district. Third, the administrative boundary should be broken and a fresh standard should be established, according to the regional economic efficiency. We can further optimize the transportation distribution circuit, and reduce logistics and transportation cost. During this process, the government not only works as a public goods provider, but plays a important role as the "watchman" in the market economy.