| Effective management of logistics cost is actually'the third source of profit'for an enterprise and thus crucial in achieving its strategic goals and increasing its competitiveness. Therefore, priority shall be given to establishing an appropriate and scientific system and methods of logistics cost management and control for the company.This paper focuses on Wengfu Group, a notable phosphate fertilizers producer in China, through relevant research and study on the characteristics of Wengfu's logistics system and all the measures in reducing cost. Measures taken include strengthening logistics management, optimizing transportation and packaging, technical innovation on related facilities, tighter control of cargo freight, increased supervision and monitoring of efficiency in logistics, warehouse management, outsourcing of logistics, improved supply chain relations and equal attention to both domestic and international markets. On the other hand, the author points out that in Wengfu some problems still remain to be solved. Inefficient management of logistics, poor planning and strategy of logistics, lack of objectives, lack of effective logistics cost control system, limited software in logistics cost control etc.Finally, the author comes up with the idea for logistics cost management and control in Wengfu, including the following 8 measures:strengthening establishment and strategic planning in logistics cost management, building a cost supervising system, reinforcing overall budget management and supervision of efficiency to improve cost management and control, exercising tighter control of logistics cost based on the cost factors, implementing management of "the whole supply-chain process", utilizing modern information system of logistics management, increasing efficiency in logistics practice and management by employing modern technology and equipment, improved management and strict control of intangible logistics cost, etc. |
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