The Research On Logistics Cost Control For H Company From Supply Chain Management Perspective

With the emerging and popularizing of logistics and supply chain management,more and more companies in our country are getting aware of how important the advanced logistics model means for their company in operation and management.Nowadays,quite a lot of companies in China could not find a way to get sufficient control of their logistics costs.It became a constraint of their company profit growth.For the reason,some companies are trying to spend more expense on improving their supply chain to reduce their logistics cost.They study their company current supply chain cost control status and do plenty of analysis to find out their disadvantages and deficiencies.The study results helps their senior managements(decision makers)to have clear overview of their problems and leading the company to make a better control of logistics cost.This kind of actions enhance their capability on logistics cost control and enable them to have a good overview of total expense on logistics.It's also benefited to keep a stable supply chain.Furthermore,it set a kind of model and bring logistics cost control experience to other industries.In this assay we take H company as a case study.We studied logistic cost control solutions of H company as well as their whole supply chain.Hope would be helpful to give constructive solutions on logistics cost control for H company even others.This article firstly explains the writing background,research purpose and significance,domestic and foreign research status,research content and methods.Secondly,it explains the concept and characteristics of supply chain management,the concept and composition of logistics cost,and the related concepts of logistics cost control were defined and explained as well.Then,it analysis the current status of H company logistics cost components and pointed out from supply chain point of view their disadvantages in logistics cost control.Moreover,it exposes H company's disadvantages in cost accounting,also their insufficient cost control in its supply chain,e.g.high purchase costs,high inventory costs,low level informatization and incomplete status management systems.After analyzing,it concluded main reasons behind the problems that H company exists in logistics cost control & in its supply chain.Finally,it gives the overall idea of optimizing route design,the activitybased cost accounting steps and the target cost control method from H company supply chain management perspective.It gives suggestions for improvement and safeguards to H company,e.g.H company should establish advanced cost control concepts,Improve the cost control system,strengthen company cost accounting,reduce company logistics costs,well-organize supply chain procedures,enhance company inventory supervision,create or introduce advanced information systems,construct external logistics management systems to get rid of existing problems and improved.