Hunan Tobacco Business Group Logistics Cost Control

Logistics cost plays a decisive role in the operation and development of Hunan Tobacco Business Group, the core business model of which is cigarette distribution. The distribution system of Hunan Tobacco Business is in charge of important tasks in the group's internal logistics distribution and has been established and developed in recent years. But some urgent problems also need to be resolved and the situation needs to be optimized inside the group, especially in one respect: the logistics cost which has been high for a long time needs to be reduced. Enterprises lack efficient cost control methods, so the profit of Tobacco Logistics has been low. Hunan tobacco enterprises are facing some major tasks: making optimization of logistics recourses, settlement of advanced cost control system, draft of advanced control plans, and adopting measures to earn maximum profit by minimum cost.Combining theory and practice, this paper researches the problem of logistics cost control in Hunan Tobacco Business Group from the perspective of Activity-based costing, and intends to provide an operational control system and practical methods for the group. On the basis of prescription of the contents, classification, function and cost features of logistics distribution, the paper analyses the practical operation process. According to logistics accounting features of Hunan tobacco group, the paper divides its operations into four parts: warehousing, sorting, distribution and integrated management, analyzes the cost features and puts forward concrete principal points of practical cost in each operation. On the previous basis, it designs cost control system for Hunan Tobacco logistics system. This is a pre-, in-, and post-process which manages and controls comprehensively on the logistics cost, based on the notion of lowest general logistics cost. At last, by combining concrete introduction about the control from operation section over logistics cost control of Hunan tobacco logistics, it focuses on optimizing logistics cost management and reducing logistics cost in these main aspects: making improvement of internal operation, innovation of warehousing models, optimization of distribution line, integration of logistics circle ,designing rational distribution and so on.