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Analysis on the new concept of managing logistics cost

Release time：[2019-10-17] Time visited：1466

There are many problems in current logistics cost management. The calculation method does not have a real grasp of logistics costs, especially the actual logistics costs within the company. The internal cost of logistics is not well understood, and the cost of logistics is very vague. I can't figure out the relationship between logistics cost and manufacturing cost, logistics cost and promotion cost. Logistics costs are mixed with costs that are beyond the control of the logistics department. Different enterprises have different calculation standards for logistics costs. The internal calculation of logistics cost standards often changes, and there are more enterprises that change every year. In addition, there are many problems in the calculation of logistics costs. For example, the purpose of calculating logistics costs is not clear. Some simply want to understand the logistics costs, but have not reached the stage of using logistics costs. Some logistics departments spend a lot of energy on calculations. Logistics costs, but only calculate the cost of logistics. In general, logistics cost management has not exceeded the scope of financial accounting. The main problems in analyzing the current logistics cost reduction are as follows: First, the logistics cost reported by the logistics department to senior management is only the tip of the iceberg. Instead of providing their production and sales departments with accurate and valuable information on logistics costs. Reducing logistics costs is only solved by the logistics department, but not jointly with the production and sales departments. Second, most companies have not established multi-batch and small-batch logistics systems. They only attempt to reduce logistics costs based on past logistics systems. They have not noticed barriers between institutions. For example, barriers between branches have become cost-reducing. Obstacles, some even if they are noticed, have not been seriously resolved. Third, there are no formal personnel and institutions responsible for logistics accounting, and some companies have completely delegated the work of reducing logistics costs to others (logistics professionals or sales and production departments), and the scope of calculation of logistics costs varies from enterprise to enterprise. However, some companies have to make comparisons, and therefore they are worried.

In view of the problems existing in current logistics cost management, most logistics companies have increased freight rates due to the implementation of multi-batch, small-batch distribution and timely delivery, as well as the high level of receiving units and excessive service requirements. Moreover, due to the increase in the variety of commodities and the shortened lifespan, there will inevitably increase the inventory, or the time will be less, which will lead to an increase in inventory costs; the increase in the cost of heads due to the lack of labor; the increase in the investment cost of the logistics center due to the increase in land prices; the transportation efficiency due to road congestion decline. All of these are affecting logistics costs. Therefore, in this case, it has become a top priority for enterprises to reduce logistics costs. In order to reduce the logistics cost, we must first understand the actual situation of the logistics, then analyze the logistics system, find the problem to improve, and finally establish a feasible new logistics system.

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