What are logistics costs and characteristics of logistics costs?

Logistics costs refer to all costs incurred from raw materials to delivering goods to consumers.

Characteristics of logistics costs Logistics costs refer to all costs incurred starting from raw materials until goods are delivered to consumers.

Traditionally, however, logistics cost calculations have always been broken down beyond recognition.

Since logistics costs are not included in the company's financial accounting system, manufacturing companies are accustomed to including logistics costs into product costs. Commercial companies mix logistics costs with commodity circulation costs.

Therefore, whether it is a manufacturing enterprise or a commercial enterprise, it is difficult to completely calculate logistics costs according to the connotation of logistics costs, and even the logistics costs that have been separated from the production field or the circulation field cannot be reflected individually and truly. No one can

It is difficult to see the true full picture of logistics costs and understand their considerable expenses.

"Logistics is the dark continent of the economy" and "the iceberg theory of logistics costs" are both vivid expressions of this current situation.

Logistics costs are difficult to calculate, mainly due to the implicit nature of logistics costs.

At the same time, many of the logistics costs are beyond the control of the logistics department. For example, the storage fee includes the cost of backlog of inventory caused by excessive purchase or excessive production, as well as the cost of emergency transportation and other exceptional shipments.

The amount of purchase or production is often not determined by the logistics functional department. In addition, there are trade-offs between various logistics costs. As far as logistics itself is concerned, among logistics functions, the reduction of functional costs makes

The cost of another function increases. Because multiple costs are interrelated, the optimal cost of the pillow must be considered when planning costs. I. From a micro perspective, logistics costs account for a large proportion of product costs, among others.

Under the same conditions, reducing logistics costs means reducing the total cost of the enterprise and increasing the profit level. The reduction of logistics costs enhances the company's advantage in product price competition in the industry, and the company can use relatively low prices.

.Sell your own products in the market, thereby improving the competitiveness of the products in the market. Increase sales and bring more profits to the company. 2. Observe from a macro perspective (1) If the logistics efficiency of the entire industry generally improves

.The level of logistics costs will be reduced to a new minimum point, and the competitiveness of the industry in the international market will be enhanced. For a regional industry, its competitiveness in the national market can be improved (2).

The general decline in logistics costs across the industry will have an impact on product prices, leading to a relative decline in prices. This is conducive to maintaining the stability of consumption levels and relatively improving the purchasing power of the people. The decline in logistics costs means a lot to the whole society.

To create the same amount of wealth, the materialized labor and living labor consumed in the logistics field can be saved, that is, with less resource investment, more material wealth can be created.