Study On The Logistics Cost Mamagement

The contribution of logistics to the national economy seems attracting more and more attention. In China, although the importance of logistics costs has been widely recognized, the micro-management and the macro-accounting of the logistics cost are still in exploring and researching. Through this study, the logistics cost accounting, logistics cost and value analysis, logistics cost optimization and control, logistics and cost strategy and logistics systems competitiveness can be fuse into an organism, which has important practical significance to reduce logistics costs and increase economic.In this study, we start from the analysis of the logistics cost system, build a' processes of logistics cost accounting, found a systems of logistics cost and value management, and thus research the logistics cost strategy and logistics information system. Details are as follows.Chapter 1 is mainly on modern logistics and logistics costs systems. This paper argues that:Logistics is the movement course which includes production, distribution, consumption and other related activities of entity carried with value and use value and the management activities during the course. Logistics costs are divided into broad sense and narrow sense. The broad sense refers to all the cost and resource occupation in the process of physical movement; and the narrow sense refers to the total payment in the process of physical movement.Chapter 2 is mainly on logistics cost and its present researching status. Study abroad focused on the micro-enterprise logistics level, reflecting strong practical and targeted. On the one hand they focus on the features of the strategic level of logistics costs. On the other hand they put the focus on the optimization of the costs and effectiveness in the logistics strategy. Study in China is also involving a wide range of content which is including the logistics cost accounting and the applications of activity-based costing, the inventory distribution and other logistics links and the simulation of the logistics system, the establishment of logistics model and the third party logistics, the extended of logistics management and the supply chain theory, the logistics cost control and optimization and logistic value management, the logistics time management, the logistics information system, the logistics system competitive research and so on.Chapter 3 is mainly on the logistics cost accounting processes and the project settings. In the traditional cost accounting methods, the information of the logistics costs is dispersed in various accounting subjects in the corporate. So it is difficult to calculate the complete logistics cost by the meaning of logistics costs. Therefore, we can set an accounting subject independently to settle this problem. We can also set some accounting subjects under the accounting subject we set earlier. Thus we can account the logistics costs with the review of the cost of congregating and movement. And we can also distribute logistics costs reasonably between accounting subjects or between the finished product and the unfinished process.Chapter 4 is mainly on the analysis and control of logistics cost. In order to establish logistics cost control system better, the enterprises should establish the logistics cost analysis systems at three-dimensional level which is orient to the cost of logistics strategy, core on the cost of logistics business and focus on the cost of logistics business, and establish the cost control system based on the enterprise external expansion logistics supply chain or internal logistics processes through the logistics cost-value analysis. Logistics cost contour means drawing contour accordance with the time-cost index around the different peripheral logistics center in the integrated planning of logistics system. Then the same cost or efficient of logistics operation can be achieved along the contour line in the logistics cost. The dynamic drivers of the cost are the structural causes of an activity cost. The dynamic drivers of the cost often interacts each other to determine the cost of a particular activity. The inputs purchased proportion of the total cost in the enterprise value is the basis for the procurement strategy to be in an important position, which is also an important assessment and management indicators.Chapter 5 is mainly on the logistics cost and value management. Logistics Value Management System is the systems of management, analysis, optimization and control based on the circulation of the logistics value. Based on the performance coefficient of logistics value, we establish the logistics value decision-making matrix for the strategic decisions related to logistics value, and the basic mode of decision-making strategies are the expansion strategy, the cost strategy, the value strategy and the outsourcing strategy. Logistics Value Chain Management (LVCM) can be divided into the strategic level, the management level, and the operational level. Although many of the cost projects or processes are essential in order to achieve the target, the important and the main value of the work should be given a high priority and get more inputs of the cost. The longer the logistics channel, the longer time spends and the greater inventory, and the business or customers pay more. Therefore, to speed up the logistics process and shorten the waiting time has become an inevitable choice for logistics cost management.Chapter 6 is mainly on the logistics cost strategy. Strategic cost management is facing a most important question which is how to combine cost management and business strategies. Different strategies require different management control systems to match. The important role of logistics is growing on the process of production and operations. Logistics system competence include:evaluation system of the core ability structure, evaluation system of the core value index, and evaluation system of the core functions classification. The analysis of benefits distribution mechanism of third-party logistics shows that the degree of the acceptability of the benefits distribution mechanism among enterprises lies on the maximum interests and the credibility of the external information. Moreover, the competition and collaboration between enterprises form a gathering community of logistics enterprises, which is of great significance on the generation of core business and the development of enterprise groups.Chapter 7 is mainly on the information systems of logistics cost.Application of information technology plays a huge role on logistics information processing activities. It is not only necessary but also efficient needed in the integration and the unity operation of the information flow, logistics, and value flow. Logistics cost information system is mainly including data collection and classification systems, data mining and analysis system, data transfer and application systems and data maintenance and adjustment system. The system will be the main decision support information system in the optimization and innovation of logistics strategy, value chain analysis, and workflow.The main innovations of this paper are:1. Based on the study of the logistics system and its development, we define the concept of logistics, card the fundamental symbols of logistics cost category, and establish the logistics cost accounting system combined with logistics cost control and optimization based on the reality accounting systems. We set an accounting subject which is named logistics costs to reflect the sum of the logistics costs occurrence. Meanwhile, it is separated into four secondary subjects called procurement costs, production costs, storage costs, loss to accounted logistics costs for different use. Since then, we can set the third levels of detail subjects according to the specific constituent elements of logistics cost.2. On the aspect of analysis and control of logistics costs, we propose that the company's logistics costs can be divided into three levels:logistics strategy cost, logistics managing costs and logistics operating cost. We suggested that the logistics cost control strategy should be strategic cost-oriented and to take managing costs as the core and to focus on the cost of logistics operation. And the vertical cost control system and the lateral cost control system will be established based on external expansion logistics supply chain or logistics processes. Meanwhile, we propose the drawing method of logistics cost contour and its application principle. Contour line in the logistics cost can be achieved the same cost of the operation or the same efficiency of operation. And we establish the value analysis and logistics evaluation system which is the implementation of monitoring and logistics strategic decision, based on the various links of the logistics activities and the core value of coefficient of performance evaluation system.3. Logistics system competitiveness evaluation model is established. The core of frame structure of the logistics system competitiveness evaluation takes the logistics system competitiveness as the ultimate goal, the customer value as the driven. It fully emphasizes the flexibility of logistics systems. And it takes the logistics system ability to integrate and channel management, logistics system ability to response, organize and coordinate, logistics system ability to achieve cost and value, logistics system ability to develop network and strategic as the key, and takes logistics efficiency coefficient, logistic difference coefficient as the core, and takes the logistics sub-system (client systems, inventory systems, supply systems, transportation systems, storage systems) evaluation as the basis. The structure is divided into three levels:the core ability forms the evaluation system, the core values index evaluation system and the core function classification evaluation system. Logistics cost information system is mainly including data collection and classification systems, data mining and analysis system, data transfer and application systems and data maintenance and adjustment system. And the core is the establishment of the data warehouse of logistics information system and the ability of data mining system to play.The inadequacies of this paper are:1. On the research of logistics cost management system, although the logistics cost accounting process, the logistics cost value management, logistics cost optimization, logistics cost strategy, logistics information systems and logistics systems competitiveness are integrated, its rationality and science need to be further explored, and the system need to be further strengthened.2. For reasons known that the enterprise's financial data, especially the cost data can not be acquired. Many aspects of this study should be further tested in practice. At present, despite the author's makes his efforts, it's hard to get more business and cost data.3. The studies of the unity of logistics cost management systems, enterprise management systems or other management system, and how to coordinate each system in business strategy in order to achieve the system efficiency maximum need to be further.