Cost of logistics supply chain


Logistics supply chain management is an effective way for enterprises to better adapt to global competition after entering the new century, and it is a new management mode. Since 1960s, logistics enterprises have had a deeper understanding of the defects of logistics cost management in financial cost management.

 

From the point of view of product distribution process, the cost incurred in this process is often to measure the cost of a single logistics function, such as storage and transportation costs, which can not include the cost covering the whole process. The so-called supply chain logistics cost refers to all kinds of economic consumption related to product logistics in the whole supply chain process of a specific enterprise. As a kind of symbiotic logistics management, supply chain logistics management emphasizes that the members of supply chain should further improve the operation efficiency of logistics enterprises through mutual cooperation.

 

Logistics supply chain management is an effective way for enterprises to better adapt to the global competition after entering the new century, and it is a new management mode. With the acceleration of the process of economic globalization, the scope of logistics is also constantly extended and expanded, the ultimate goal of each enterprise is to reduce logistics costs and create higher logistics added value.

 

The cost of supply chain logistics includes the whole process of enterprise supply chain operation, including the following important aspects.

 

First of all, the cost of product logistics supply. This part of the cost mainly refers to that from the buyer of raw materials and other items to the buyer, the whole process of product circulation occurred in a variety of logistics costs for the enterprise.

 

Secondly, the internal logistics costs of the enterprise. This mainly refers to the cost incurred in the process of production enterprises from the formation of products, transportation and packaging to the completion of sales, and the realization of sales in this part is through the conclusion of sales contracts as the main standard.

 

Third, the product sales logistics fee. It mainly includes the packaging, delivery, distribution and other expenses of the sales company.

 

Fourth, the recovery of logistics costs. It mainly refers to that manufacturers recover the costs of containers and so on from customers in order to better achieve the purpose of the use of products. 

 

Finally, the cost of product waste logistics. It mainly refers to the cost of recycling products, packaging, containers and so on as a result of waste.