The Study On International Logistics Cost Analysis And Control About A Numerical Control Technology Company

With the accelerated process of globalization and international competition, the customer-centric logistics management faces a more complicated environment. Enterprises are facing stronger competitors, competition of simple product quality and performance are not enough, and it turns to the competition between the costs. As an important part of the costs, the logistics costs have been paid more and more concerns in recent years. Reducing the logistics cost in a reasonable way is an important aspect for enterprises to improve their core competitiveness. The international logistics is an important aspect for A Numerical Control Technology Company. In the field of high-end CNC system, A Company’s products have a good reputation in the industry. But for a long time its international logistics costs are too high. Especially in recent years, with the development of the domestic machine tool industry and the more demand for CNC system, the business of A Company is growing fast in China, but due to the weak logistics costs management, the logistics costs gradually increase. A Company’s international logistics costs are4%of its sales. The heavy burden of logistics costs made the company only meager earnings. Therefore, an analysis about the international logistics costs of A Company and measures to reduce the international logistics costs have practical significance for improving the performance. In this thesis, firstly, the theory of international logistics, international logistics costs, and logistics cost management are summarized. Secondly, on this basis, the status and characteristics of international logistics of A Company will be analyzed. The main problems of the company’s international logistics are high packaging costs, high transportation costs, high inventory costs and low operational efficiency etc. Then, in the analysis of the logistics cost, transportation cost, packaging cost, inventory cost and overall logistic costs are analyzed in details. Focus is the transportation cost, it was classified according to charge type, including air freight, ocean freight, inland freight, customs clearance charge, storage charge, duty. The detailed analysis focused on the freight caused by two main transportation modes:air transportation and international express transportation. Finally, in response to these problems, the solution to reduce the logistics costs is to formulate the transportation mode selection criteria, to use the modes of transportation reasonably, to use third party packaging service to reduce packaging cost, to make demand prediction and use reasonable inventory management methods to reduce inventory cost and to improve the logistics efficiency. At the same time, we should consider that the reduction of one type of cost will affect the other costs. The goal is to achieve an overall control of the total international logistics costs.