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Study On The Application Of ABC/ABCM To Third-Party Logistics Firms

Posted on:2005-06-18Degree:MasterType:Thesis
Country:ChinaCandidate:L W LiuFull Text:PDF
GTID:2156360122487796Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Logistics industry is a basic industry and artery for national economy developmentand it is also a fiercely competitive industry. If logistics firms want to gain success insmall marginal profit market, it is essential and important for them to reinforce costmanagement and Customer Profitability Analysis. However, traditional costcalculation method (Volume-Based Costing, VBC) that emerged based on traditionalmanufacturing industry hasn't fitted in with modern logistics firms cost management.The cost based on VBC is fault, and it possibly lead to logistics firms make errordecision. Therefore, the paper introduces Activity-Based Costing (ABC) andActivity-Based Cost Management (ABCM) to logistics firms, and systematicallystudy the application of ABC/ABCM to Third-Party Logistics firms.Firstly, On the basis of systematically analyzing logistics activities, the structure chartfor forward and reverse logistics system is given. The motive for outsourcing logisticsand the business process of Third-Party Logistics firms are discussed. And the way toThird-Party Logistics firms and Third-Party Logistics practice's present conditionsand future are studied.Secondly, ABC's principle and conception system are systematically studied.Difference between ABC and VBC is stated. ABC' application steps are designed.ABCM' thinking and content are probed. The framework chart of Activity-BasedManagement is structured.Thirdly, logistics firms cost structure and feature are discussed. The feasibility andnecessity of implementing ABC/ABCM in logistics firms is demonstrated. Theapplication of ABC data to Customer Profitability Analysis is probed. CustomerProfitability Matrix based ABC is put forward.Last but not the least, the paper proves the logistics service contract's cost ABCprovides is more correct than that VBC provides by the case study. At the same time,the paper demonstrates implementing ABC/ABCM in logistics firms is operational.
Keywords/Search Tags:Third-Party Logistics, Activity-Based Costing, Activity-Based Cost Management, Customer Profitability Analysis
PDF Full Text Request
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