New Concept Of Logistics Cost Management

There are many problems in the current logistics cost management, and the logistics cost is not grasps in the calculation method, especially the logistics cost inside the company.

The internal logistics cost of enterprises is not very well understood, and what is logistical cost is also very vague.

It is not clear about the relationship between logistics cost and manufacturing cost, logistics cost and promotion cost.

The logistics cost is mixed with the cost that the logistics department can not control.

Different enterprises, the calculation standard of logistics cost is also different, the standard of calculating internal logistics cost often changes, and there are more enterprises in each year.

In addition, there are many problems in calculating the logistics cost. For example, the purpose of calculating the logistics cost is not clear, some simply want to understand the logistics cost, and have not yet reached the stage of using the logistics cost. Some logistics departments are spending a lot of energy to calculate the logistics cost, but they only calculate the logistics cost.

Generally speaking, logistics cost management has not exceeded the scope of financial accounting.

The main problems existing in the analysis of reducing the current logistics cost are as follows: first, the logistics cost reported by the logistics department to the top management is only "iceberg".

Instead of providing accurate and valuable information about logistics costs to their production and sales departments.

Reducing logistics costs is only solved by the logistics department, but not with the production and marketing departments.

Second, most enterprises do not establish multiple batches or small batch logistics systems, but only attempt to reduce logistics costs on the basis of past logistics systems, ignoring the barriers between organizations, such as barriers between branches have become obstacles to cost reduction, and some have even noticed them and have not seriously solved them.

Third, there is no formal specialized personnel and agencies responsible for logistics accounting. Some companies have completely reduced the cost of logistics to others (logistics professionals or sales and production departments), and the scope of calculating logistics costs by different enterprises is different. However, some enterprises have to make comparisons, and therefore they are happy and worried.

In view of the current logistics cost management problems, most of the logistics companies, due to the implementation of multiple batches, small batch distribution and timely distribution, also due to the excessive number of receiving units and the high level of service requirements, the higher the level of logistics services, resulting in higher freight charges; and because of the increase of commodity varieties and shorter life span, inventory will inevitably increase, or more time will be less, which will lead to higher inventory costs; the shortage of labor will lead to an increase in head costs; the increase in land price will result in an increase in the investment cost of logistics centers; as a result of road congestion, pport efficiency will decline.

All these are affecting the logistics cost.

Therefore, it is imperative for enterprises to reduce logistics costs under such circumstances.

In order to reduce the logistics cost, we must first understand the actual situation of logistics, then analyze the logistics system, find that the problem is improved, and finally establish a feasible new logistics system.

The correct calculation of logistics cost is the basis for effective reduction of logistics cost. The current logistics cost accounting methods are mainly based on three forms: payment form, function calculation and application object calculation.

According to the payment form, the logistics cost is accounted for by freight, storage, packaging materials, internal distribution fees, personnel costs, logistics management fees, and logistics interest.

From this we can understand the total logistics cost, and we can also know which funds are the most expensive.

This is very effective for understanding the importance of rationalization of logistics cost and considering what should be emphasized in logistics cost management.

According to functional calculation, logistics costs are calculated separately according to the functions of packaging, distribution, storage, pportation, information and logistics management.

From this method, we can see which function is more cost efficient, and further find out the crux of rationalization of logistics.

It can also calculate the standard logistics cost (unit number, weight, container cost), carry out operation management, and set rationalization goals.

According to the function, the logistics cost can be grasped from the angle of function. According to the logistics cost calculated according to the form, the distribution benchmark ratio of the logistics department cost varies according to the different industries and enterprises.

Therefore, it is very important to find out the distribution basis according to the actual situation of the enterprise.

You can also calculate the functional logistics cost according to the unit (distribution or selection).

Then compare the constituent ratio or amount of each function logistics cost with the previous year, find out the reasons for the increase and decrease, and study the designated rectification plan.

By calculating the logistics cost according to the applicable object, we can analyze what kind of object the logistics cost is used.

For example, commodities, regions, customers, or business units can be calculated separately.

Calculating logistics cost by branch or business is to calculate the comparison between logistics cost and sales amount or gross income of each business unit, so as to understand the problems existing in the logistics cost of each business unit, so as to strengthen management.

According to the method of calculating the logistics cost by customers, it can be divided into two calculation methods according to the standard unit price and the actual unit price.

Calculation of logistics cost by customers can be used as a reference for designated customers, determining the level of logistics services, and other designated customer strategies.

The calculation of logistics cost according to commodity means calculating the logistics cost by calculating the logistics cost calculated by function and distributing it to different kinds of commodities with different benchmarks.

This method can be used to analyze the profit and loss of all kinds of commodities. In practical application, we should consider the effect of gross income and turnover rate of goods and shipments.

Reducing logistics cost is an eternal topic for enterprises. First, we must clarify the purpose and choose the correct accounting method when we calculate the logistics cost.

On the basis of understanding the actual situation of logistics cost, we formulate logistics activities plan, regulate and solve problems, evaluate logistics department's contribution to enterprise's efficiency, use logistics cost to establish logistics responsibility system, improve logistics status, observe the change of cost correctly by sequence view, compare with other companies and other industries, point out unreasonable logistics activities that should be responsible for sales or production departments, provide logistics information to senior management cadres, and better carry out logistics management.

It should be emphasized that in the past, logistics was regarded as an activity without benefit, so it was always considered that it must be rationalized to reduce costs. This view is not comprehensive.

Modern ideas argue that logistics should not be regarded as a cost to be paid, but should be used effectively as a resource.

That is to say, logistics cost is regarded as a factor of production.

We should use logistics cost resources to promote sales and strive for customers.

To ensure revenue, we must consider increasing logistics costs and striving for the realization of sales targets when necessary.

It should be said that now has entered the era of logistics activities can generate revenue.

When considering the relationship between logistics service and logistics cost, logistics cost should be reduced on the premise of maintaining a certain level of logistics service.

The concept of modern logistics cost management believes that it is also important for professional logistics departments to do a good job in logistics budgeting and establish a logistics cost responsibility system.

We should distinguish between controllable and uncontrollable parts, clarify responsibilities and formulate rewards and punishments.

Finally, we need to point out that in the past, enterprises only focused on how to grasp the logistics cost.

Mastering logistics cost is very important, but the idea of modern logistics cost management thinks that in the future, we should shift the emphasis to how to apply logistics cost and pay attention to logistics cost effectiveness.

In the aspect of logistics management, we should actively carry out the analysis of results and logistics profit and loss in the future.

Logistics cost is based on the whole logistics activity, and it is the only basic and common data.

It can be said that logistics cost is the basis for logistics management to rationalize logistics.

Since logistics costs are not included in the financial accounting system of enterprises, it is not easy to grasp them without special calculations.

In the current logistics cost, many of them are beyond the control of the logistics department. For example, the storage fee includes the overstock cost caused by excessive purchase or over production, and the cost of exceptional delivery, such as emergency pportation cost.

In terms of sales, logistics costs do not distinguish between redundant services and standard services.

For example, logistics costs usually include promotional expenses.

Therefore, it is difficult to see the full picture of the cost of logistics if the cost of logistics is mixed with most of the cost in the company.

The calculation range of logistics cost is different from each other, so it can not compare with other companies, nor does it exist the average logistics cost of the industry.

There is a reverse rule of logistics cost.

Between logistics functions, a reduction of functional cost will increase the cost of another function.

Because the costs are interrelated, the best cost of the whole must be considered.