Tobacco Business Enterprise Logistics Cost Management

This paper discusses the logistics cost of tobacco based on the introduction of the logistics's content, classification, function and effect ..analyses the presently position tobacco industry faced and points out that establishing modern logistics having low-cost and high-efficiency is the necessary choice for tobacco industry. Then, it clarifies detailedly the concrete means of controlling logistics cost, such as erecting regional distribution center, utilizing saving mileage to optimizing distribution routes and enhancing distribution efficiency ,using ABC classification to reduce inventory cost, especially emphasizing the application of activity-based costing on controlling logistics cost. Finally, the paper summarizes the controlling logistics cost methods and hopes that it is a beneficial exploration to perfect tobacco distribution network by the research on logistics cost.