What are the strategies and main measures of distribution cost control?

The control of distribution cost is to reduce the distribution cost as much as possible under the premise of meeting a certain level of customer service, or to minimize the distribution cost under a certain level of service. Generally speaking, in order to minimize the distribution cost under a certain service level, the following strategies can be considered.

(A) mixed strategy

Hybrid strategy means that part of distribution business is completed by enterprises themselves. The basic idea of this strategy is that due to the different types, specifications and sales of goods, the pure strategy distribution model beyond a certain level can not only achieve economies of scale, but also cause economies of scale. However, adopting mixed strategy and reasonably arranging the distribution completed by enterprises themselves and outsourced to third-party logistics can make the distribution cost lowest.

(B) differentiation strategy

The guiding ideology of differentiation strategy is different product characteristics and different customer service levels. When an enterprise has multiple product lines, it cannot deliver all products according to the same standard customer service level, but should set different inventories, different modes of transportation and different storage locations according to the characteristics and sales level of products.

(C) M&A strategy

The merger strategy includes two levels: one is the merger of issuance methods, and the other is the same issuance.

1. Combination of allocation methods

It is an important way for enterprises to make full use of the volume and load of vehicles to reduce costs when arranging vehicles to complete distribution tasks.

2.* * * Same delivery

* * * The same distribution is a kind of enjoyment at the level of property rights, also known as centralized collaborative distribution. It is a distribution mode in which several enterprises jointly collect a small amount and use the same distribution facilities in large quantities. Its standard operation form is: under the unified command and dispatch of the central organization, all distribution entities act together with business activities (or assets as a link), coordinate their operations in a larger area, and * * * provide serialized distribution services to one or several customers.

(D) Delay strategy

The basic idea of delay strategy is that the appearance, shape, production, assembly and distribution of products should be delayed as much as possible until the customer order is received. Once an order is received, it is necessary to respond quickly, so a basic prerequisite for adopting a delay strategy is that information is transmitted very quickly.

Generally speaking, enterprises that implement the delay strategy should meet the following basic conditions: first, product characteristics, that is, the production technology is very mature, the degree of modularity is high, the product value density is high, the product characteristics are easy to express, and the volume or weight of the product can be changed after customization; The second is the technical characteristics of production, that is, the product design is modular, the equipment is highly intelligent, and there is little difference between customization technology and basic technology; The third is the market characteristics, that is, the product life cycle is short, the sales fluctuate greatly, the price competition is fierce, the market changes greatly, and the product delivery time is short.

There are two ways to implement the delay strategy: production delay (or formation delay) and logistics delay (or time delay). There are often processing activities in distribution, so the implementation of the distribution delay strategy can adopt both formation delay and time delay. Specific operations often occur in labeling (molding delay), packaging (molding delay), assembly (molding delay), sending (delay) and other fields.

(5) Standardization strategy

The standardization strategy is to minimize the extra distribution cost caused by variety change, and adopt standard parts and modular products as much as possible. The adoption of standardization strategy requires manufacturers to consider how to save distribution costs from the standpoint of consumers at the beginning of product design, rather than wait until the product is finalized for production before considering what skills to adopt to reduce distribution costs.

Main measures of distribution cost control:

(1) Strengthen the planning of distribution. In the distribution activities, temporary distribution, emergency distribution or unplanned distribution at any time will greatly increase the distribution cost. In order to strengthen the planning of distribution, it is necessary to establish a distribution declaration system for branch stores. In practical work, different distribution applications and distribution systems should be formulated according to the characteristics of commodities.

(2) Determine a reasonable distribution route. It is an important work in distribution activities to determine a reasonable distribution route by scientific methods. There are many ways to determine the distribution route. We can use the scheme evaluation method to draw up a variety of schemes, taking the number of vehicles used, the number of drivers, the amount of fuel, the difficulty of driving, the difficulty of loading and unloading vehicles, the punctuality rate of delivery, etc. as evaluation indicators, compare various schemes and select the best scheme, or we can use mathematical models for quantitative analysis.

(3) Carry out reasonable vehicle stowage. The sales situation of each branch is different, and the order varieties are also inconsistent. Multiple items may be delivered at one time. These items are not only different in packaging form, storage and transportation performance, but also different in density. Articles with high density often reach the load capacity of vehicles, but there is a lot of spare space; Although the goods with low density have reached the maximum volume of the vehicle, they cannot reach the load capacity. Carrying out light and heavy loading can not only make the vehicle fully loaded, but also make full use of the effective volume of the vehicle, greatly reducing the distribution cost.

(4) Build a computer management system according to one's ability. In the distribution operation, sorting and distribution accounts for 60% of the total labor, which is prone to errors. If the computer management system and bar code technology are used in the picking and distribution of goods, the picking can be fast and accurate, and the distribution can be simple and efficient, thus improving the production efficiency, saving labor and reducing the distribution cost.

(5) Formulate the standard of distribution cost. The standard of distribution cost is the basis of distribution cost control, which includes various indicators specified in the distribution cost budget. However, some indicators in the distribution cost budget are comprehensive and cannot meet the requirements of specific control, and a series of specific standards must be stipulated.

(6) Supervise the formation of distribution cost. According to the standard of distribution cost control, each item formed by distribution cost should be inspected, evaluated and supervised regularly. We should not only check the implementation of the indicators themselves, but also check and supervise the conditions that affect the indicators, such as equipment and working environment. Therefore, the daily control of distribution cost should be combined with the control of distribution operation.

(7) Correct the deviation in time. For the reasons of the difference in distribution cost, it is necessary to find out the responsible person, find out the situation, put forward improvement measures and implement them.