The Research For JT Group’s Cost Control System Construction

With the increasing demand for social logistics, the logistics of our country has developed from the initial stage into the stage of rapid growth. JT Group, as the representative of China’s railway logistics enterprises based on China railway network, has become an important pillar of China’s logistics industry. With the competition of foreign logistics enterprises after China’s accession to the WTO, traditional extensive development mode apparently cannot adapt to the market. The typical management issues and theoretical study of the problem is gradually exposed. Especially, the JT Group seems to have trouble with cost control, which results in low profit of JT.In this paper, with a review of cost control theory and situation of cost control of JT Group, we summed up the following problems of JT:witch hunt of railway enterprises, high investment, light cost management thinking ingrained; planned economy institutional inertia and influence; the regional segmentation of the institutional obstacles; low autonomy of enterprises; cost management and control measures still mainly rely on budget management; cost control, imperfect evaluation and incentive mechanism; cost-control idea in depth, short of full awareness; networking, information construction; heavy historical burden; inadequate pricing mechanisms. Overall, the root of the problem caused by the JT Group’s cost control is short of scientific cost control system. Without the system, the JT Group in not able to get rid of the situation of low efficiency and low profit.According to the analysis of the JT Group’s cost control, we bring forward a model of JT cost control system:First, in the budget formulation, budgeting should be aligned with the company’s strategic goals to improve the participation of all sectors, emphasis on the review of the budget review and assessment, design of a targeted and flexible budget, reduce budget complexity and cycle; Secondly, in the business accounting stage, we need to take full advantage of the favorable policies of China and the advantages of the rail industry, attention to detail and business support activities in the enterprise basic system construction, human resource management, research and development, procurement and materials management and other aspects of the times, and continuous improvement, perfect rules and regulations, make full control of cost, refining the contract contents, standardize work process, clear division of responsibility, increased cost consciousness, auxiliary account set up and improve the efficiency of using the fixed assets, completes the analysis, planning, reduce capital takes up cost, reasonable choice transport business operation mode, to improve service cost-effective; Finally, in the evaluation stage, the JT Group should be clear assessment criteria to implement the evaluation mechanism, to improve the examination content, considering the various factors, analyzes and improves the four aspects including financial, customer, internal operations, innovation and learning, and communicate the relationship between objectives, strategies and business activities to achieve short-term benefits and long-term interests, local interests and the overall interests of the equalizer.Overall, to ensure the smooth development of JT cost control system, this paper provides JT with a series of solutions and suggestions on the aspects of macroeconomic policy, institutional support, as well as internal control security protection measures.