Project Design On Logistic Cost Controlling Of Changchun TH Company

Logistics cost is the second biggest expenditure after raw material cost formanufacturing enterprises. Therefore, enterprises shall regard logistics cost control as akey emphasis in work. Only make clear of the real situation of enterprise’s logistics cost witheffective control over relevant logistics cost can the enterprise has a more reasonable andefficient logistics activity, thus minimizing the total logistics cost. Control of logistics cost isactually an anticipation of the cost and a pre-planning. Accounting department have tocollect information and calculate the logistics cost, to analyze the possible logistics cost ofthe year according to relevant data and to invest logistics department. Accountingdepartment needs to categorize all data and feedback to relevant departments as referencesfor cost reduction.Calculation of logistics cost is the precondition of logistics management. Lack ofexperience and unpredictable factors during cost estimation will lead to an inexactanticipation of logistics cost, which brings enterprises big trouble in logistics management.Worse still, some inefficient activities can’t be discovered in enterprise’s logistics operation.Meanwhile, no vertical and horizontal comparison for logistics cost due to lack of uniformindustry standards and cost estimation experience. Therefore, only a conceptualunderstanding of logistics cost can’t bring a deep understanding of the logistics cost. Itrequires to have a comprehensive master of logistics cost detail structure, accountingmethods and cost reduction solutions. And this is also an urgent problem which needs to besolved for logistics management in our manufacturing enterprises.Changchun TH is a company whose main business is passive safety system for vehicles,including development and manufacture of steer wheel, air bag restraint system and seat beltetc. The company was founded in2001in Changchun. Changchun TH developed from acompany with only more than200employees to a company with more than1700employeescurrently owning three branches in Shenyang, Chengdu and Foshan under the leadership of asequence of Chinese and American General Managers in14years. Now the company hasbecome a leading supplier in Jilin Province for components and parts. Together with thedevelopment of the company, its unique management system and methods also improved. Here we are going to discuss and perfect the company’s logistics cost control system. Weplan to establish a more reasonable, scientific and efficient logistics cost control scheme forTH Company through improving its management of logistics department and deliverymethods of domestic suppliers, establishing logistics cost budget control and transportationcost control, optimization of packing and control of packing material, and managingwarehouse with modern bar-code system. We will make the scheme more adaptable to thedevelopment of the company to provide logistics support for the enhancement of THCompany’s comprehensive competitive strength.