A Research On Logistics Cost Control And Optimization For G Company

With the quick development of the domestic logistics, more and more companies choose to outsource their logistics operation. The third-party and fourth party logistics enterprises have to control their cost as much as possible in order to grow, strengthen themselves and remain invincible under the growing competition.G Company, as a fourth-party logistics enterprise, mainly provides their customers with total supply chain solutions. They target to create value to customers with the best service and the lowest cost. According to the related domestic and foreign research and the theories of logistics cost control, an analysis and research on logistics cost control of G Company was done in the perspective of logistics management instead of logistics cost accounting. In this thesis, the operation model of G Company and the system of logistics cost control was firstly described. Secondly, the status and existing problems of G Company’s cost control was analyzed from the composition, features and affecting factors of logistics cost. Then the improvement plan of logistics cost optimization was raised from the aspects of logistics purchasing procedure and strategy, Lean Six Sigma, supplier management and cooperation model. And the effect evaluation of logistics cost optimization was finally done. From the author, fourth-party logistics enterprises have to control the cost of both third-party logistics supplier and themselves. They need to find the breakthrough point from the composition and influencing factors of logistics cost during the cost control based on the antinomies of logistics cost. Logistics cost cannot be down by delivering poor logistics service, and the right decision on logistics cost should align logistics cost with logistics service level. Under the request of cost down, fourth-party logistics enterprises should actively approach customers and discover the new model of cooperation between both parties together for the purpose of win-win. Moreover, with excellent performance, the optimization of logistics cost can be achieved.