Research On Logistics Cost Management Of Distribution Center In Greenjian Dairy Industry Co., Ltd

With economic development, many companies in China have realized the importance of logistics cost management. Reducing logistics costs and improving economic efficiency have become an important goal for companies to develop and extend their businesses. Compared with developed foreign countries, costs of dairy products in China keep in the high level and its management level relatively lags behind. Dairy products distribution centers are the most important sector in the dairy industry. A great deal of transportation, loading, unloading and storage take place in diary products distribution centers at a high frequency and costs of the distribution centers are rather complicated. Even processing and package in distribution centers are awesomely professional. Due to a late initiation of China’s dairy products distribution centers, most enterprises still adopt the traditional cost-accounting methods. But these methods cannot concretely list related logistics costs. Instead, under such accounting methods, most logistics costs are attributed to related manufacturing and sales departments, which results in unreal logistics costs data, severely influencs judgement of enterprises and hinders the development of logistics industry.During research on logistics costs in Green Heathy Diary Limited Company, some problems are found out about logistics costs management and some improvement measures are put forward in this essay. In the meantime, applicability, feasibility and necessity of ABC (Activity Based Costing) for Green Heathy Diary Limited Company is profoundly researched and analysed. This essay firstly introduces background of this research and the meaning of selecting this topic to give a brief understanding and analysis of the current situations of logistics cost at home and abroad; some basic theoretical knowledge about distribution centers, logistics cost managements of distribution centers and calculation methods about logistics costs are also introduced. Secondly, after comprehensive investigations about the Green Heathy Diary Limited Company and overall situations of its logistics activities, existing problems in logistics costs management are explored, applicability of ABC in its distribution center is analyzed and management ideas are put forward to further complete control strategy of its logistics costs.