Study On Logistics Cost Management Of A Company

With the development of economic globalization, the logistic management consciousness of the companies enhances continuously, and reducing logistics costs has become the primary task of enterprise logistics management. Scientific and rational logistics cost control, coordinate and improve the structure of the entire production and distribution company, to improve resource utilization effects company, to control logistics costs and improve the quality of service the company has a very significant role in promoting. In China, the cost of the logistics required to be used in the total production costs still occupies 18%, so the logistics cost has become a huge obstacle of our country enterprises to participate in international competition. Therefore, the logistics cost management has been a huge obstacle for Chinese enterprises to participate in international competition. Therefore, how to efficiently manage logistics cost to low-cost investment for higher returns is an important issue facing enterprises.This paper chooses A company from manufacturing enterprises as an example. We combined with its logistics cost management status which includes paying great attention on production, ignoring logistics and the lack of effective logistics management to do the research. During the research, we found lots of problems existing in A company. Such as a lack of separate accounting system, imperfect accounting content, the lack of a system of logistics management and a low degree of information of the company’s logistics cost management and so on. To solve these problems, the activity-based cost (ABC) method is applied to analyze the data. And we select B, C as a case to build ABC model. Then we turned to do its logistics cost accounting, and compare the result with original accounting methods. So it showed that the ABC method plays an important role in the logistic cost management. What’s more, we proposed the following effective strategies based on the results of the feasibility analysis of the data:establishing a sound accounting system, optimizing the logistics cost management structure; strengthening the logistics cost management awareness of the staff; reducing logistics costs through outsourcing; strengthening the institutional innovation of enterprise logistics cost management and establishing modern information systems. Based on Combining theory and examples with the qualitative and quantitative analysis, it indicated that ABC method enables enterprise logistics cost management more systematic and scientific. As also, it has a certain value for the enterprises to improve their market competitiveness and market position.