Enterprise logistics cost management and control

In business operations, logistics is an activity that permeates various business activities. Logistics cost is to evaluate the actual situation of logistics activities by the amount. Modern logistics costs refer to all logistics costs incurred from the beginning of the supply of raw materials to the delivery of goods to consumers. Since logistics costs are not included in the company's financial accounting system, manufacturing companies are accustomed to accounting logistics costs into product costs, while commercial enterprises mix logistics costs with commodity circulation costs. Therefore, whether it is a manufacturing enterprise or a commercial enterprise, it is not only difficult to completely calculate the logistics cost according to the connotation of the logistics cost, but also the logistics cost that has been divided by the production area or the circulation area cannot be calculated and reflected separately.

Whether it is an enterprise logistics or a logistics enterprise, how to optimize the allocation of their own logistics resources, how to implement management and decision-making, in order to bring the greatest benefits with the least cost, are one of the most important issues they face. Logistics is regarded as the last and most promising link for manufacturing companies to reduce costs and improve efficiency.

总 Total cost of enterprise logistics

Classification of logistics costs can provide managers with more detailed issues that affect decision-making, but the company's logistics activities are organized according to different functions, such as order processing, transportation, etc., and most companies use accounts to divide costs Logistics costs cannot be listed separately, so the task of dividing logistics costs is arduous.

Enterprise logistics cost refers to the total cost of logistics-related activities such as procurement, sales, and production. Total logistics cost is an important indicator for enterprises to manage logistics operations. How to reduce the total logistics cost without reducing the service level is an operating goal of the enterprise.

Transportation cost: The transportation cost refers to the expenses incurred by the enterprise in all transportation activities of raw materials in process and finished products, including direct transportation costs and management costs. In order to reduce the total cost of logistics, it is necessary to strictly control the expenditure on transportation and strengthen the economic accounting of transportation.

Inventory holding costs: Generally speaking, inventory can account for more than 20% of a manufacturer's assets. Some concepts of inventory holding costs are ambiguous and difficult to determine. Therefore, at present, many companies simply multiply the current bank interest rate by the value of the inventory plus other expenses as the inventory holding cost. In fact, inventory holding costs include inventory capital occupation costs, inventory service costs, inventory risk costs, and price adjustment losses.

Storage costs: Most storage costs do not change with changes in inventory levels, but with the number of storage locations. Storage costs include warehouse rent, warehouse depreciation, equipment depreciation, loading and unloading costs, cargo packaging materials costs, and management costs.

Batch costs: Batch costs include production preparation costs, material handling costs, planning and acceleration costs, and loss of production capacity due to conversion.

损失 Out of stock loss: The cost of out of stock refers to the loss of sales profits due to failure to meet customer orders or needs.

Order processing and information costs: Order processing refers to all document processing activities in the process from the time the customer places the order until the customer receives the goods. The cost of the activities related to the order processing is the order processing cost. IT costs refer to IT costs related to logistics management operations. Including software depreciation, system maintenance and management costs.