Study On Logistics Cost Management Of Changsha Double Dragons Corporation

In present-day society, the productivity develops rapidly, social products are significantly enriched, and competition among enterprises becomes fierce. As excavated potential of the first profit source by lowering manufacturing costs to increase profits and the second profit source by expanding sales to increase profits are getting smaller and smaller, the logistics cost attracted more people's attention. Through lowering logistics costs to increase corporate profits has become the company's third profit source. To fully excavate the potential of the third profit source, it is necessary to get fully understanding of the logistics cost and grasp the logistics cost information in order to control and reduce logistics cost. In recent years, China's logistics have made great progress, but compared to developed countries in Europe and the United States, China's enterprise's logistics cost management current situation is still not optimistic.After four years'development, Changsha Double Dragons Corporation of Hunan Province has become the largest pharmaceutical business wholesale center in Hunan Province. But as the company's growth, logistics cost management problems are increasingly prominent. Firstly, this paper identifies problems in the company's logistics cost management from management philosophy, logistics cost analysis, logistics personnel, etc., and focus on the analysis of the causes of the problem. Secondly, in allusion to the existing problems, this paper provides strategy to improve the company's logistics cost management from two aspects of the external measures and internal measures. The external measures includes the overall steps and main points to build external logistics system, and the internal measures focus on improving management logistics cost management concepts, accelerating the construction of enterprise information, optimizing inventory management, improving the distribution system and the logistics cost accounting system. Finally, in order to enable the smooth implementation of the measures and achieve the desired results, the paper explores the protection strategy of the measures from emphasizing on the strategic position of logistics, logistics personnel training, establishing modern logistics enterprise organizational structure, outsourcing strategies and network security with expect to play a certain role for reference for the logistics management improvement of Changsha Double Dragons Corporation.