Study On Logistics Cost Management Of The Non-oil Business Of Shandong Sales Company Of Petro China

The non-oil business of Shandong Sales Company of Petro China achieved rapiddevelopment, greatly improving sales and profits since the commencement. Departure fromthe logistics cost management in the enterprise logistics management activities, combinedwith the ideas and theories of the logistics cost management and control, it made effectiveanalysis about current logistics cost management and control of Shandong sales companybasing on activity-based costing.Shandong Sales Company did some work in the control of non-oil logistics cost. Butaccompanied by the growing socio-economic development and growing size, importanceshould be attached to enhance the logistics cost management and control of non-oil. In orderto achieve the company’s logistics cost optimization the company logistics cost managementand control method need to further improve.In this paper, it analyses the logistics cost management issues and causes of ShandongSales Company from the non-oil logistics cost accounting, business processes, managementand logistics cost performance appraisal, etc. Then in the cost accounting, it redefines thenon-oil logistics costs combined with the shortage traditional logistics cost accounting.According to the reality of the company, it puts activity-based costing into use the company’snon-oil logistics cost management. In the business processes and management, it controls costfrom the important part of processes (procurement, transportation, distribution, inventory,information management, etc.). In the assessment of the non-oil logistics costs, it uses KPIassessment system for quantitative assessment from the levels of company, department andthe staff. Finally, in order to implement the above strategy, it should have some guaranteemeans (consciousness, talents, etc.).