Logistics Cost Management Research Of Tianjin Rockcheck Steel Group

The idea of modern logistics has been introduced to China for over 20 years. Nevertheless, there are some weak points in logistics management, especially logistics cost management of enterprises, for logistics covers a wide range of aspects as accounting of cost, making an inventory of all the stock, the establishment of modern information system, and so on. As one of main basic industry of the national economy, with the rapid development of iron and steel works in China, the logistics management has been attached to more and more importance by managers. At present, due to the inefficiency, the outmoded logistics management techniques and methods and the high logistics cost of most iron and steel works, seeking for a stronger management has become an urgent task.Rockcheck Steel Group Co. Ltd. (abbreviated as Rockcheck Steel) is a transregional iron and steel complex with private investment in Tianjin. It has the capacity of producing 280 million ton iron, 260 million ton steel, 200 million ton lumber, 28 million ton coke, and 420 million ton sinter per year. Despite such tremendous productive force, there are still some problems with the current logistics cost management and the accounting system, such as high logistics cost, inaccurate information of logistics cost, irrational institutional framework of logistics, unsmooth internal logistics and outmoded information system of logistics cost management. This paper aims to make an analysis and research into the current situation of logistics cost management in Rockcheck Steel, to probe into the effective measures to lower the logistics cost and to improve its efficiency in accounting and management of logistics cost as well as its performance by the rational design and application of activity-based costing.This paper makes a thorough analysis of the current situation of logistics cost management of Rockcheck Steel Group Co. Ltd. and compares it with that of other iron and steel works in China. With the methods of qualitative analysis, quantitative analysis, comparative analysis and demonstration analysis, this paper carries out a detailed analysis of Rockcheck Steel's problems and their causes, and then puts forward the specific measures to lower the logistics cost and strengthen logistics cost management. These measures include establishing a stable raw...