Study On Improvement Of 3rd Party SCI Service On Logistics Cost Of F Chemical Company

Under the globalization of chemical industry,small sized enterprise are faced with radical change and challenge: they are inferior on logistic management comparing to international corporate.In order to improve its competitiveness,F chemical company outsourced its supply chain to Z,a supply chain integrated(SCI)company,so that to improve the supply chain structure and lower the logistic expense.This article aims to investigate F company’s improvement on logistic expense management under SCI,so that to prove logistic expense management in supply chain could offer a reference to enterprise logistic management and improvement.The investigating method can be summarized as below: On-site checking,forwarding agent visiting,logistic related departments interview,financial data checking were taken to collect logistic expense of F company in 2019.Activity based costing model was used to integrate the expense of material dispatching,transferring,warehousing,production and processing,finish good storage,finish good shipment.These expense,together with the F company’s original supply chain management,were analyzed and lead to the conclusions of F’s higher-than-average logistic fee,large proportion of purchasing cost,lack of management on resource fee,high labour cost.This investigation studied the logistic process and route,purchasing management,human resource management to dig out the root cause of F company’s problem.To summarize,F company was encountered with several issues: disordered order management resulted in high dispatching and shipping expense,detouring route setting,unstable order management and late payment caused lack of power in negotiation,slow turnover caused extra agent fee and storage cargo damage,lack of enough and experienced personnel in logistic management.To solve these problems,Z company emphasizes on raw material purchasing and carrier management when they took over and offer supply chain integration.On raw material purchasing,Z company collaborated procurement,improved funds management to improve turnover rate,combined liquid of carrier to shorten the purchasing route,increase purchasing method for inport trading,improve stability of orders to gain negotiability on carrier fee,shorten the payment term to decrease unit shipment fee.F company’s logistic fee has largely decreased during 2020 3rd semester.