How to reduce the logistics cost of customers

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How to reduce the logistics cost of customers

according to the analysis, among all the costs related to enterprise logistics, external entrusted logistics costs account for 42.7%, while internal indirect logistics costs account for 57.3%

logistics services reduce customer costs mainly through the comprehensive analysis and control of all links and factors in the process of enterprise supply chain. In this process, the goal of logistics management is not limited to the tangible costs of external transactions of enterprises such as transportation and warehousing, More importantly, through efficient logistics and distribution services, the supply chain is not complete (21.60%), which is also the key to the development of various intangible costs of customers. A Japanese logistics expert once put forward the "logistics iceberg theory", comparing all logistics costs to an iceberg. The tip of the iceberg that emerges from the water is only a small part of the logistics costs that enterprises directly pay to external units, which are easy to calculate and master, such as freight, handling charges, etc., and a large part of the costs that occur within the enterprise and are difficult to be clearly divided and calculated separately. This cost is like a "dark continent" that lurks underwater, It is also the focus of reducing enterprise costs. According to the analysis, among all the costs related to enterprise logistics, external entrusted logistics costs account for 42.7%, while internal indirect logistics costs account for 57.3%. Sinotrans reduces the cost of customers mainly from the above two aspects. There is still a large market space for the development of the extruder industry. Through dynamic logistics cost analysis, we can achieve the goal of maximizing the logistics benefits of enterprises. The main performance is:

1. Reduce the direct transportation and distribution costs

reducing the direct transaction costs of customers such as transportation and warehousing is one aspect of reducing the total logistics cost of enterprises. In the past, enterprises often adopted a random and decentralized transportation capacity procurement method in this aspect. This extensive management increases the uncertainty of service quality on the one hand, and increases transaction costs and management costs on the other hand, which has always been one of the reasons for the high operating costs of enterprises. Through the special transportation and distribution system and professional management of logistics providers, we can not only solve the above problems and reduce the transportation and loading and unloading costs, but also effectively transfer the risk of commodity loss in the circulation process of enterprises

2. The cost effect of "zero inventory"

realizing "zero inventory" of enterprises is the core factor to reduce customer costs, and it is also the direction of Sinotrans logistics services. The reduction of enterprise inventory is directly reflected in the reduction of storage costs and related storage, management and maintenance costs. On the other hand, with the reduction of inventory, a series of other potential costs of the enterprise have been reduced

the first is the reduction of capital cost. Due to the existence of long-term inventory, a large number of funds are occupied and overstocked. From a financial point of view, this is a considerable cost in itself, because the capital itself has time value and opportunity cost. When a large amount of capital is occupied by inventory, it can neither be appreciated nor transferred, and it is in a stagnant and invalid state, which will virtually cause huge interest losses or opportunity cost losses of income from investing in other fields. Especially in the production field of high-tech products, whether the inventory of raw parts in the upstream or the inventory of finished products in the downstream belong to high value goods with small volume and high value, and the amount of funds occupied is very huge. At this time, the effect of logistics to reduce the capital cost of enterprises is more obvious

the second is the reduction of risk cost. The existence of a large amount of inventory not only increases the costs of enterprises, but also increases the business risks of enterprises. Especially in today's increasingly fierce market competition, the market demand is changing rapidly, and the upgrading speed of enterprise products is also accelerating, resulting in the increasing timeliness of commodity prices and demand. The greater the inventory, the greater the risk of depreciation and elimination. For example, in China's market, the market price of various models has fallen very rapidly, and a large amount of inventory backlog will inevitably lead to time risk loss. Therefore, many manufacturers adopt the production mode of small batch and multi batch to adapt to the changing market competition, so the demand for zero inventory is more urgent. At the same time, another manifestation of risk cost is the existence of commodity depreciation. Significantly reducing inventory can effectively transfer the relevant depreciation losses of enterprises, which is also an effective way to reduce enterprise costs

of course, the goal of "zero inventory" is relative, not absolute. In fact, the project focuses on analyzing the properties of new graphene based polymer materials, and there is a balance between inventory cost and transportation cost. The condition of realizing "zero inventory" is the improvement of transportation quality requirements, which will inevitably lead to the increase of transportation cost. When the transportation cost and inventory cost reach the equilibrium state, the inventory is in the optimal and most economic state at this time. Therefore, how to determine the best inventory of the enterprise is also one of the logistics services provided by Sinotrans Group for customers

3. Optimize the capital flow and improve the capital efficiency of enterprises

from the local perspective, logistics services can effectively promote enterprises to reduce various costs, and from the overall perspective, it can further improve the capital flow status of enterprises and improve the capital efficiency of enterprises, so as to improve the economic benefits of enterprises from the perspective of capital operation. The whole process of supply chain management is overall rather than partial, long-term rather than temporary, which determines that in the process of reducing customer costs through logistics services, we must pay attention to the impact and improvement of enterprise capital flow. In fact, a successful logistics service project is the organic combination and high unity of cargo logistics, information flow and capital flow. We can describe it this way: goods logistics is an external action, information flow is a technical means, and capital flow is the ultimate goal. The economic benefit of an enterprise is ultimately determined by the operation of capital flow, so the cost management in logistics services basically needs to be based on the operation efficiency of enterprise capital flow. The higher the capital efficiency of an enterprise, the greater the cost reduction, and the more obvious the economic benefit. The capital flow movement of an enterprise is essentially the capital turnover process of the enterprise's capital in the three states of the performing unit: monetary capital, production capital and commodity capital of Guohao Exhibition (Shanghai) Co., Ltd. the capital efficiency depends on two factors: the total amount of prepaid capital and the speed of capital turnover. The reduction of inventory can directly reduce the total amount of capital prepayment used by enterprises for production, and the improvement of capital turnover speed is achieved by improving the logistics distribution speed of enterprises and value-added services in the circulation process. Therefore, an efficient distribution system and a logistics center with value-added service capabilities are important conditions for improving the speed of capital turnover of enterprises


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