How to effectively reduce logistics costs

First, clear the composition of the total logistics cost of enterprises: transportation cost,

Inventory holding cost, storage cost, batch cost,

Out-of-stock losses, order processing and information costs, procurement costs and other management expenses.

Second, the use of strategic cost management methods to control logistics costs

Generally, logistics performance can be tested by productivity standard, standard cost, budget and other methods. Strategic cost management is a comprehensive and feasible management technology, which makes enterprises pay attention to the cost of products to be manufactured at the stage of product planning and design. The key factor of strategic cost management is target cost.

Activity-based costing (ABC) is a strategic cost management method, which allocates costs to activities according to the amount of resources consumed by each activity, and then allocates costs to products according to the amount of activities that occur in each product. Using activity-based costing can improve and optimize activity chain, reduce activity consumption, improve activity quality, and carry out strategic cost management in the whole activity life cycle. Through activity-based cost management, the strategic cost of enterprises is managed, which provides cost information for logistics process reengineering and performance evaluation, and provides more favorable basis and standards for enterprises to further improve cost control and strategic planning decision-making

Third, the basic way to reduce the total cost of enterprise logistics

Through the analysis of the total logistics cost of enterprises, in the specific operation of enterprises, it is suggested to take the following basic ways to reduce logistics costs:

1) Reduce logistics costs through efficient distribution. Enterprises can realize efficient distribution, reduce transportation times, improve loading rate, reasonably arrange car allocation plan and choose the best transportation mode, thus reducing distribution costs.

2) Using logistics outsourcing to reduce the logistics cost of enterprises. Reduce investment cost

Outsourcing logistics to a specialized third-party logistics company can shorten the transit time of goods and reduce the expenses and losses in the process of commodity turnover. Conditional enterprises can use third-party logistics companies to supply goods directly online, realize zero inventory and reduce costs.

3) Control and reduce the logistics cost with the help of modern information management system. Under the traditional manual management mode, the cost control of enterprises is influenced by many factors, and it is often difficult and impossible to achieve the optimal control of each link. On the one hand, enterprises can make all kinds of logistics operations or business processing accurate and rapid by adopting information systems; On the other hand, the possibility of logistics cost can be controlled by data summary and forecast analysis of information system.

4) Strengthen the cost management awareness of enterprise employees. The work of cost reduction extends from the logistics management department to all departments of the enterprise, and logistics cost management is carried out from the whole life cycle of product development, production and sales, so that employees of the enterprise have a "strategic cost consciousness" of long-term development.

5) Implement supply chain management in the whole process of commodity circulation. Make the supply chain composed of production enterprises, third-party logistics enterprises, sales enterprises and consumers integrated and systematic, realize logistics integration, maximize the benefit of the whole supply chain and effectively reduce the logistics cost of enterprises.