Research On The Cost Management Of 3PL--Applying ABC Method

At present majority of papers on logistics and cost on logistics are constructed from macroscopic view and the angle of logistics users. But as the logistics service providers, the logistics enterprises, they desire for an effective method of cost management. This paper is aimed to study and analyze logistics and logistics cost, then search for an effective way to manage logistics cost, from an microscopic view and the angle of logistics service provider.This article adopts mainly methods of theoretic researching. The original analogy studying method is used here, considering that there is an analogy between the logistics services enterprises and manufacturing enterprises from production structure and product cost structure. On the base of former analysis, this articled points out that logistics enterprise is a manufacturer the produces intangible logistics services. Then the article attempts to apply the ABC method (activity-based costing) which was most used in manufacturing industry in the cost management of logistics enterprises, and set up an applying model. What's more, case on actual logistics enterprises' data is used for demonstrating the ABC application in logistics enterprise is another feature of the paper.This paper is constructed as follows: firstly, to generally introduce logistics and 3PL(the third logistics provider), analogize the production structure and cost construction in enterprise after comparing with the manufacturing enterprise, and introduce the content of ABC and its applying conditions; Secondly, to construct an ABC apply model. The core of the model is calculation of logistics enterprise services product, and the shell of the model includes the product pricing policies and the logistics cost control, and then use a typical calculating example to introduce how to apply ABC to calculate logistics cost, how to apply activity analysis and resource analysis to support pricing strategy, andhow to apply other viewpoint of ABC method to manage the cost incurred in logistics enterprises; finally, to analyze the practicability and feasibility of applying ABC method in logistics enterprises, and then put forward some suggestions on implementation of ABC method in the home logistics enterprises.The core of ABC method is its special and effective cost calculation. But the implementation of ABC is comparably expensive so far. The activity analysis method included in ABC can be used in logistics cost management as a new way to manage logistics cost before implementing ABC calculation method.