Study On Warehousing Cost Control Strategy Of W Pharmaceutical Company

China is already the world’s second largest pharmaceutical market.The pharmaceutical market is expanding and the demand for pharmaceuticals is increasing year by year with the deepening of medical reform and the expansion of medical insurance coverage.It says an army marches on its stomach.The warehousing department is not only need to provide qualified production materials to the production department,but also need to ensure the quality of the final product before it is sold out.The increase in production poses a challenge to the warehousing efficiency of pharmaceutical companies.It also highlights the importance of warehousing cost control.Once warehousing was simply defined as a warehouse where goods were stored.It is a cost center with no added value.Business managers generally do not pay attention to the warehousing department.More and more managers are aware of the importance of the warehousing department with the development of warehouse management and the enrichment of warehouse management content.Warehouse management has become an important task that cannot be ignored in modern enterprise management.Pharmaceutical industry is different from other industries.Pharmaceutical warehousing is regulated by the Good Supply Practice for pharmaceuticals.It will take up a lot of resources in the early stage of construction and later operation to ensure the quality stability,timeliness and accuracy of drugs in the storage process.Therefore,the warehousing operations will have a significant impact on the operation of pharmaceutical company.Effective control of warehousing costs is crucial to the development of pharmaceutical companies.This paper is based on the activity cost method theory.It take W Pharmaceuticals as a case study for warehousing cost control.After accessing W Pharmaceuticals’ information,financial data analysis,visiting the site,and interviewing the staff,I analyzed the problem of its storage costs and the causes.I proposed to use activity cost control to control the storage cost of W Pharmaceutical Company to solve the current problem.The innovation of this paper is I use the Perti network,EIQ-ABC analysis method and the activity cost method to coordinate with the warehouse management method based on the concept of business and financial information integration when the standard cost is set during the cost planning phase.I translate non-financial information into financial data.It sets a more reasonable standard cost provide a baseline for cost control in the warehousing sector.This paper is a case study of W Pharmaceuticals’ warehousing cost control.It summarized the problems in the warehousing cost control process of W Pharmaceutical Company and proposed solutions.Through verifying the effectiveness of the solutions,It provide a reference for the warehousing department of pharmaceutical enterprises to improve efficiency and reduce costs.And I also hoped that the application of the activity cost method to collect activity information through the warehouse management method will provide a reference for practice.