Research On The Logistics Cost Control Of Home Chain Retail Enterprise Based On The Supply Chain

After the second revolution of department store to chain operation, the home furnishing retail developed fast through the development of real estate industry in ten years. But affected by real estate regulation, RMB appreciation, export reduction and substantial increase in wages, the profit of home furnishing was decreased. Traditional operation mode and profit mode could not make up for the loss of customer market, and the electrical commerce also has an impact on the traditional home furnishing retail business. So how to improve core competitiveness of enterprises and expand market share become the problems to be solved. The costs of logistics which act as the third profit source become the fundamental guarantee of corporate profitability. Therefore, how to effectively control the logistics cost is an important issue of the home furnishing retail industry.This paper focused on the logistics cost of home furnishing stores, and systematic studied the control of logistics cost based on the supply chain of home furnishing stores. According to the theoretical research, supply chain status of home furnishing retail and cost control were reviewed. The concept of home furnishing retail chain industry is defined, and the business model, future trends and the supply chain structure of home furnishing retail chain industry were investigated. The logistics cost structure and the basic principles of logistics cost control were analyzed.Based on the supply structure of home furnishing retail chain industry and the realities of the situation, this paper focused on the procurement and sales of home chain retail enterprise. The processes were introduced and the structure and influence factor of logistics cost were analyzed. After that, the corresponding control strategies were put forward for each aspect of the problem. Analytic hierarchy process was used in supplier selection. Centralized procurement model was proposed to lower purchasing cost and establish EOQ model. The best order quantity of centralized purchase was determined. By comparing the VMI and JMI, the applicable type of the two inventory management model in home furnishing retail chain was explained. The storage type selection method was proposed from qualitative and quantitative point of view, and the transportation route was optimized by saving mileage method. The sales logistics cost was controlled by improvement of customer service, establishment of logistics information system and distribution mode selection. The KL corporation was used as an example, the problems existed were analyzed and the control measures were proposed.Currently, the home chain retail enterprise of our country is in the stage of transformation. This paper aimed at increasing attention of logistics cost control and making enterprises aware of the importance of logistics cost to improve the market competitiveness in the transformation stage.