Application Research On Activity-based Costing In Third-Party Logistics Enterprise

The goal of modern logistics is to meet the needs from customers; it is also a strategic measure to unify the market conditions in manufacturing, transportation and sale etc. It is also seeking to further improve the competitiveness of an enterprise by reducing costs, improving efficiency and lifting service levels. Modern logistics as a focus of new economic growth, its importance is self-evident.The profits of a Third-Party Logistics Enterprise, essentially stems from the modern science of logistics management by promoting new values, which is also called the third source for profits. The cost savings in logistics is the new value created from the logistics science, which is shared by a Third-Party Logistics Enterprise and its customers. It creates a "win-win" strategy between a Third-Party Logistics Enterprise and its customers as the reduction in the operating costs of the customers is the same as improving its own performance. The logistics costs are directly related to the profit control of a Third-Party Logistics Enterprise; how to effectively reduce logistics costs and to increase corporate profits is becoming a core content of logistics management for a Third-Party Logistics Enterprise. Therefore it is necessary to seek the logistics cost management and control methods based on the concept of mordent logistics cost management. In order to improve the logistic management level for a Third-Party Logistics Enterprise, this article uses Third-Party Logistics business as a research object. This article mainly focuses on how the law applied to the operating costs of logistics enterprises in the management of cost control with a goal to make it as a reference for future applications of cost accounting operations in the Third-Party Logistics Enterprises in costs management in China. This article first introduced the concept, characteristics and constituents for a Third-Party Logistics and its Logistical Operating Cost It also introduced the concept and theories for the Activity-based Costing. It then made the comparison between the Activity-based Costing to traditional cost method. On the basis of analyzing the present status and difficulties in cost accounting for a Third-Party Logistics Enterprise, we made the countermeasures and built a cost account method verification model of a Third-Party Logistics Enterprise, in the meanwhile we proposed the cost control and evaluation methods for a Third-Party Logistics Enterprise. In the case study of W company, we implemented the Activity-based Costing in its ocean-transportation sector. By using the Activity-based Costing to analyze and control the logistic cost, we made comparison before and after the improvement in operating efficiency and cost situation. This article proposed the cost calculation method which applicable for a Third-Party Logistics Enterprises; it also discussed some specific measures on how a Third-Party Logistics Enterprises to control costs and reduce the costs and finally draw the conclusions and make recommendations on how to implement control methods and results evaluation.