Research On S Company’s Logistics Cost Analysis And Control

The modern enterprises are in a fiercely competitive situation, which is markedby raw material price and labor cost increasing. The enterprises can’t keep their profitmargin any longer just rely on the cost reduction in the production or the increasing oflabor efficiency. They start to develop a new profit source–logistics costmanagement, in order to keep being competitive in their areas. This thesis analyzesthe factors which affect the logistics cost of S company in both qualitative andquantitative ways, on top of the current available theory and research. It introduceslogistics management organization and logistics cost control methods in details.Starting from logistics cost control theories, this thesis describes the relatedlogistics cost theories/the procedure of logistics cost control and the method oflogistics cost control, such as partially control/overall control and process control. Itresearches the logistics cost control system in the aspects of supply chain logisticscost management and integrated logistics. It introduces some methods of logistics costanalyzing/calculating and performance management, as well as the relatedevaluation methods.This thesis takes S company as an example, focuses on their China importgateways and international transportation paths selection, which is the maincontributor for their logistics cost. Based on the overall logistics cost calculationmethod and comparison analysis method, it compares and analyzes the logistics costin different transportation paths by breaking down the cost of each path in details, inorder to determine the most economical transport path, thus reducing total logisticscosts. It analyzes the proportional relationship of the breakdown of each program’scost to identify the direction for the further cost control of the existed programs. Inaddition, from a practical operational point of view, this thesis explores thetransformation of the organizational structure for logistics cost control/the setting upof logistics and transit center/utilization of the integrated third-party logistics serviceproviders and the modern information management system, which may be fit for Scompany. It analyzes the advantages and disadvantages of these factors in theenterprise logistics cost control, in order to reduce the logistics cost of S company andprovide a reference for the other similar enterprises.