Research On Logistic Cost's Calculation And Control

With the development and implementation of technology, it is more difficult, under certain producing technological condition, to increase the capital value and achieve more profits through raising productivity and reducing the costs in producing and management processes. This point, further, has been demonstrated by the managerial practices in developed countries. However, business logistics, an area not being touched, could be regarded as the last boundary where the enterprises could obtain more profits. In business operation management, logistics is also being considered as the third profit source.Currently, business logistics has become the hot point invested by firms as well as the key issue researched in academic area. The benefits of logistics are mainly generated by management, especially the reduction to the effect of "logistics iceberg", namely the systemic control to logistics costs and the effective elimination to the logistics operations that fail to generate the value. Generally, cost is always a critical factor influencing corporate profits. Not only is the cost reduction an important issue in corporate management, but also is the essential task in business logistics management. Therefore, the achievement to the third profit source is based on the effective and efficient management and control to logistics costs.Moreover, the calculation and control to logistics costs are significantly complex, involving every aspects or steps of business operations and logistics activities. The omnidirectional and systemic management and control to every component of logistics could generate the favorable results. This paper combines the real practices in China with the Chinese and foreign literatures about logistics management. In addition, based on the modern theories as well as the systemic, useful and operational methodology, this paper, applying the latest knowledge about cost calculations, management accounting , economics and supply chain management, mainly emphasizes the logistics' construction, calculation and control. Propose adopting the ABC to calculate the logistics cost, has set up the index system of logistics coston controlled way, from such respects as the homework function and selecting site study how to control the logistics cost, have put forward the thought of managing logistics by supply chain.It is desired that this paper could provide some benefits to improve the logistics cost management and increase the corporate competitive advantages.