Research And Application Of C Steel Company's Logistics Cost Improvement Plan

Steel is an important support for the country's economic development and infrastructure.However,China's domestic steel industry as a whole shows a low growth rate and low profitability.The complex circulation links and high circulation costs of the steel supply chain are the main reasons for the overall low profits of steel companies.Effectively reducing logistics costs in the supply chain can significantly enhance the profitability of steel companies,thereby enhancing their market competitiveness.C steel company is experiencing a development bottleneck period of excessively high business cost rate and insufficient profit margin.Overall,reducing its logistics costs can help the company break through the bottleneck and smoothly achieve its development goals.In this context,this article conducts research on the overall improvement plan of company C's logistics costs.First of all,starting from the current situation of C company's logistics cost management,the analysis shows that its current main problems are insufficient awareness of logistics cost improvement,lack of scientific guidance methods,and distortion of logistics cost statistical information.Based on the grasp of these issues,it is pointed out that the focus of the next research is to determine the key logistics costs and cost driving factors of C company.By constructing a system dynamics model of company C's logistics costs,and inputting enterprise operating data for simulation analysis,the procurement transportation costs,warehouse inbound and outbound costs,and packaging costs are regarded as the key costs to be improved,and at the same time,their key driving factors are determined for each cost.Next,through the analysis of key cost driving factors,clarify the entry point of C company's logistics cost improvement.Mainly combined with the relevant theories of industrial engineering and logistics cost management,the overall improvement plan is then proposed.For the three major modules of the overall improvement plan:procurement transportation cost improvement,warehouse storage cost improvement,and packaging cost improvement,technical research was conducted separately.In the aspect of cost reduction in procurement,the main research is to adjust the structure of procurement materials and the improvement of the overall procurement and transportation process;in the aspect of cost reduction in the inbound and outbound link,the main research is to research the integrated application of data collection technology in the finished steel warehouse of C company,as well as the inbound and outbound.The efficiency of the operation process is improved;in terms of cost reduction in the packaging process,the main research is the introduction of the C company's steel product packaging standard system and the construction of a just-in-time procurement mode of packaging materials.Finally,analyze the application of the logistics cost improvement plan proposed for company C,and give a detailed description of the application plan from the aspects of implementation steps,organizational support and financial support.With the aid of the system dynamics model built in the previous article,a comparative analysis of the expected benefits of the application is carried out to verify the effectiveness and feasibility of the scheme.