Third-party Logistics Cost Management Based On TDABC

Third-party logistics needs to get a significant development. That’s because it isa necessary way to improve the overall quality of Chinese logistics industry. As to thethird-party logistics’ development, how to improve its cost management is one of therestrictions.There are many problems that restrict the improvement of third-party logisticscost management. Based on this fact, this paper takes third-party logistics service costas its research object. The main purpose of this paper is to find a new logistics costaccounting and management method, with which it is probable to improve the costmanagement of third-party logistics enterprises, and then to promote the developmentof the third-party logistics industry.The research method of this paper is a combination of theory study andempirical analysis. Firstly, this paper analyzes the composition and features of thethird-party logistics cost, points out the shortage of the traditional cost accountingmethod, and chooses Time-Driven Activity-Based Costing (TDABC) as theaccounting method through comparing the pro and cons between TDABC andActivity-Based Costing (ABC). Then, according to the principle of TDABC, thispaper constructs a third-party logistics cost accounting model, proposes anddemonstrates the concept of Customer Relationship Management, Unused CapacitiesManagement, and the Optimization of Bottleneck Activity based on TDABC. Finally,using a specific case, this paper verifies the effectiveness and value of TDABC in thethird-party logistics cost accounting and cost management, which has a certainreference value to the improvement of Chinese third-party logistics enterprises.The main contribution of this paper includes two aspects. The first one is thispaper constructs a third-party logistics cost accounting model based on TDABC. Thesecond one is this paper puts forward a way of using TDABC, combined withCustomer Relationship Management and Theory of Constraints, to improve the entiremanagement of the third-party logistics enterprise.