On The Production Of Business Logistics Cost And Its Control

Logistics has existed for long. The "idea" of logistics was formed in the first of 20 century in the developed countries in the west. Logistics is for configured goods from the original point to the last consumer.Logistics activity is divided into logistics production enterprise and business. The logistics of production enterprise is different from the logistics of business. The logistics of production enterprise is a kind of movement way of goods for kinds of materials/spare parts/accessories and so on from original shape to special shape of products. Its goods shape changes incessantly until to become finished products of special shape in the process of the production. However the logistics of business turns special products and sever over to special customer utilizing kinds of ways of logistics deliver. The shape itself doesn't change.In the production process, enterprise will result from the transaction of logistics. But the transaction of logistics will result from logistics cost. So logistics cost is a currency show of various labors which are consumed in the process of the space transfer of products.American economist Peter Duclar Predicted in the sixties of the 20th century that the logistics industry would be the dark-continent of economic growth in every country, the last way of reducing the cost, the third profit sources after controlling the materials expenses and improving the labor productivity as well as the unopened-up virgin soil. Japanese Waseda University professor Xizexiu describes thatthe logistics is the iceberg which part of the bottom is bigger than the top part. Enterprise usually pays attention to the transport charges which are paid out in the factual actual activity of logistics. But the majority of logistics cost is muddled into other cost.Improving internal logistics of enterprise, finding the relation of various functions activities and serve and cost of logistics, decreasing cost and increasing enterprise profit have been the key for enterprise to pursuit of "the third profit source". There are "benefit deviation" among various function of logistics and serve and cost of logistics. That is there are kinds of losing contradiction among some elements in the logistics system. Some elements of function superior and benefit is formed. At the same time, the benefit of other elements of function will be lost. However, In the process of factual operation, productionenterprise is used to pursuit of the decrease of a certain logistics cost and neglect losing benefit other element. At last, the profit of enterprise is affected.The logistics cost relating with logistics activities of enterprise and having "benefit deviation" have costs in the midst of selecting address, transport, store. Finding and controlling the benefit deviation" in the midst of these costs is the key for enterprise to controlling logistics cost. However the hard core of selecting address of enterprise need to utilize total cost analysis way and expound and prove the rationalization of the warehouse in order to control selecting address of the warehouse. The control of transport cost may be set out to promote direct transport tactics, comparing and analyzing kinds of costs and looking for the best way of transport from the factor of impacting economic benefit. Making storage tactics must design the object of storage management and affirm reasonable safety storage levels and purchase quantities to balance the relation storage cost, purchase cost and deficiency goods. Customers serve level of logistics is the result of designing logistics activity level. Each customer have proper cost level. We can enunciate the proper cost level between cost and serve by the relation of sale and cost. The relation of "the rule ofbenefit decreasing by degrees" makes enterprise affirm the largest degree of income and logistics cost and the best of sever. At the same time of today of socialization large production, the degree of cooperation and reliance among enterprise. The third party logistics w...