Research On Analysis And Control Of Logistics Cost Of Huai'an

With the development of modern logistics, its important role of "the third profit source" is no longer a secret, and logistics management has become the research focus for both business community and academia community, while effective management and control of logistics costs are the foundation and the key of successful implementation of logistics management. Making a parallel comparison with developed countries, the logistics costs of China's enterprises remain rather high, thus how to control logistics costs, reasonably distribute resources, reduce logistics costs and create more profits for enterprises have become the important issues challenging the logistics management departments of enterprises and the logistics cost research sectors, they are also related to the important strategy of promoting China's economic development. At present, in the variety of domestic research results, we can't find a set of logistics cost management theory fully meeting fundamental condition of China.The author of his paper takes the logistics costs of enterprises in Huai'an region as studying objective, because this region stretches across the Huaihe River, and being located at the intersection of the Yangtze River economic development axis and the coastal economic development axis of China's eastern economically developed areas, it is the only way from Xuzhou, Lianyungang, Yancheng and other cities to the provincial capital--Nanjing as well as southern parts of Jiangsu and Shanghai, thus such a two-way location advantage makes Huai'an the north-south transportation hub in Jiangsu Province and the center city in southern parts of Jiangsu Province. Since the beginning of "The 10th Five Year Plan ", with the remarkable achievements of logistics infrastructure construction, great potential and vast development space, the steadily developing logistics industry of Huai'an has played an important role in promoting the development of the entire logistics industry of Yangtze River Delta region and even of the country, while at the same time, Huai'an is less developed than the developed regions around, due to the later start and more constraints, the higher logistics cost has become the fact restricting its economic development. Therefore, the cost analysis and control research of logistics in Huai'an region have a strong practical significance.The author of this article firstly makes an analysis on logistics development status in Huai'an region, believes that Huai'an has had the unique geographical and economic location advantages in the development of modern logistics, in recent years, the rapid expansion of the total economy, the rapid growth of industrial production, the remarkable results of fixed assets investment, the satisfactory operation of financial and monetary as well as the development of road, railway, waterway, aviation and other transportation facilities have laid a foundation for the logistics industry, but its warehousing, logistics information level, logistics centers and parks need further development; looking from the macro circumstance, logistics industry of Huaian is facing a number of development opportunities, but from the micro perspective of enterprises, mainly due to the higher logistics costs which resulting in increased overall operating costs and lowered profits, the pace of development is relatively slow, thus the scientific control for logistics costs is imminent. Secondly, the author analyzes the factors affecting logistics cost of enterprises of Huai'an, and finds that the multi-departmental internal management of the enterprises has limited the planning control of their logistics systems. The control intensity which the internal logistics systems impose over materials plans are often impacted by the departments of supplying, equipment, program operating and other departments of the enterprises, and the worse situation is that the some materials schemes are not developed by the logistics system, and because the management departments fail to timely and comprehensively grasp the situations such as life cycle of materials and storage capacity, etc., so that the storage quota of materials can not be independently appraised and fixed according to their using cycles and the laws, thus the planning and the control over part of the materials are limited. In the operation of logistics systems, weak material planning will directly lead to taking up storage funds which is the biggest factor restricting the cost reduction of logistics systems. Then, the author of this paper analyzes the lateral control of logistics costs by means of case study, and believes that both logistics cost analysis and management control are of control measures after events, while enterprises should mainly seek the difference of logistics management costs, and the reason for the difference, so as to take further measures to reduce and control the logistics costs. Finally, beginning with the status quo of logistics development of Huai'an, the author analyzes the support and promote factors of Huai'an logistics development as well as the internal and external factors affecting enterprises' logistics cost from angles of statistics and economics, through studying the theory of logistics cost control, put forth the inspiration on logistics cost management for enterprises of Huaian to derive, and offer some suggestions on reducing the logistics cost of enterprises of Huai'an.