Cost Management Of The Third-party Logistics Business Based On The Project Management

The globalization is more and more important nowadays. So Logistics industryhas played a key part in the national economy. Logistics outsourcing businessbecomes a necessary trend for many enterprises. It is expected that in2016China willbe the third largest industry market in the world, and the market share will amount to1.1trillion RMB. Furthermore the annual sustainable growth rate will be around16%.Although third-part logistics is booming, this industry has not a optimisticliving space. Because the logistics factor cost is soaring, and we are lack of ascientific cost management theory. The logistics cost of Chinese enterprises accountsfor18%of GDP, comparatively the European and American countries accounts for8%to10%. The proportion of logistics cost in GDP is an important symbol toevaluate one country’s modern logistics level. Moreover, logistics cost also representsone enterprise’s competitiveness. Therefore, it is necessary for each enterprise toperfect their logistics system.By research it is found that the third-party logistics enterprises often accept theentrust from clients in the form of projects. So we introduced the Project Managementtheory, which is a new subject in recent years. And this subject has become one of themost important branches of Management Science. It is believed that ProjectManagement will be more and more widely used in the logistics outsourcing business.In China, the research on the third-party project management is not very good,thus we have to learn from foreign countries so as to enhance our owncompetitiveness.This paper first introduced the current situation of the third-party logisticsbusiness, then analyzed the cost management of this business. Finally this papertalked about the application of cost management in the third-party logistics business.With the case study of DHL Avon Project Cost Management, this paper analyzesthoroughly the profits, cost management accounting, project operation cost, etc. Theproper measures for cost management are also suggested in this paper.