In the process of logistics operation, in addition to logistics cost management through cost control techniques such as budget management and responsibility center management, enterprises also need to improve logistics efficiency through the application of various methods to achieve the goal of reducing logistics costs. Here are 12 strategies for reducing the cost of controlling logistics.

1 Combination of cost control and service quality control

The purpose of logistics cost control is to strengthen logistics management and promote logistics rationalization. Whether the logistics is reasonable depends on two aspects, one is the level of service quality to customers, and the other is the level of logistics costs. If we only pay attention to the reduction of logistics costs, it may affect the quality of customer service, which is not feasible.

Generally speaking, there is a contradictory relationship between improving service quality and reducing logistics costs. That is to say, if you want to reduce the logistics cost, the quality of logistics service may decrease. On the contrary, if you improve the service quality, the level of logistics may increase. Therefore, when carrying out logistics cost control, we must do a good job in the combination of service quality control and logistics cost control. It is necessary to correctly handle the relationship between cost reduction and quality improvement, and seek to improve logistics efficiency from the best combination of the two.

2 Combination of local control and overall control

Local control refers to the control of the cost of a certain logistics function or link, while system control refers to the overall control of all logistics costs. The most important principle of logistics cost control is the control of total cost. The essence of logistics is the whole system, which requires the organic combination of the whole system and various auxiliary systems for overall control. From the perspective of total cost, we should not only look at the reduction of transportation costs. In a certain sense, it is more appropriate to use the total cost control than the cost control of the local logistics function. The systematic control of the total cost is the decisive factor to determine the success or failure of the modernization of logistics, and the goal of logistics cost control should be to reduce the total cost of logistics.

3 Combination of total control and key control

The logistics system is a multi-link, multi-field and multi-functional all-round open system. This feature fundamentally requires us to follow the principle of overall control when we conduct cost control. First of all, regardless of product design, process preparation, procurement and supply, or manufacturing, product sales, or after-sales service, all tasks will directly or indirectly cause changes in logistics costs. Therefore, it is required to implement the whole process control over the whole production and operation activities.

Secondly, the occurrence of logistics costs is directly subject to the work of the supply, production, and sales departments of the enterprise. Therefore, it is required to implement the control of all departments and employees of logistics costs. Thirdly, logistics cost is a unified whole composed of various logistics function costs, and the level of each function cost directly affects the rise and fall of the total logistics cost. To this end, it is also required to implement a full-featured logistics cost control.

Finally, from the perspective of the economic content that constitutes the logistics cost, the logistics cost is mainly composed of factors such as material costs, labor costs, depreciation costs, and entrusted logistics costs. Therefore, it is required to implement the full factor control of logistics cost.

Emphasizing the overall control of logistics costs is not to control all the factors that affect the cost rise and fall in every detail and equally, but to implement key controls in accordance with the principle of exception management. It is necessary to strictly control the items or factors that have an important impact on logistics activities and their economic effects.

4 Combination of economic control and technical control

It is necessary to combine the daily control of logistics cost with the economic management system of logistics cost to carry out the comprehensive management and control of logistics cost. Logistics cost is also an economic category. The implementation of logistics cost management must follow the laws of economy and make extensive use of economic categories such as interest, bonuses, quotas, and profits, and economic means such as responsibility settlement and performance appraisal. At the same time, logistics management is a highly technical management work. In order to reduce logistics costs, efforts must be made to improve logistics technology and logistics management. Through the mechanization and automation of logistics operations, as well as the full application of transportation management, inventory management, distribution management and other technologies, logistics effects can be improved and logistics costs can be reduced.

5 Combination of professional control and full control

It is necessary for departments (units) related to the formation of logistics costs to control logistics costs, which is also one of the basic responsibilities of these departments (units). With the logistics cost control of professional departments, the formation process of logistics cost can be continuously and comprehensively controlled, which is also a necessary work for logistics cost control.

6Consider the whole circulation process

Controlling logistics cost is not only the business of the enterprise, but should consider the efficiency of logistics cost in the whole supply chain process from product manufacturing to end users, that is, the investment or expansion of logistics facilities depends on the development and requirements of the entire distribution channel depends. When controlling the logistics cost of an enterprise, it is necessary to pay attention to the extent of the cost reduction for each user. Especially when the price competition in the retail industry is extremely fierce today, the retail industry has asked the shipper to lower the price of the goods. Therefore, the manufacturer or wholesaler as the shipper is trying to improve the performance of logistics activities for different users.

7 Improve the level of supply chain management

Under the supply chain logistics management system, it is not enough to improve the logistics efficiency of the enterprise alone. It requires the enterprise to coordinate the relationship with other enterprises, customers, and transport operators to realize the efficiency of the entire supply chain activities. Because of this, the pursuit of cost efficiency is not only a matter for the logistics department or production department in the enterprise, but also a matter for the operation department and the procurement department, that is, to implement the goal of reducing logistics costs in all functional departments of the enterprise.

8 Improve logistics service level

Improving logistics services to customers is the most important means for enterprises to ensure their interests. In a sense, improving customer service is one of the effective ways to reduce logistics costs. However, logistics services exceeding the necessary amount not only cannot bring about the reduction of logistics costs, but hinder the realization of logistics benefits.

Therefore, under normal circumstances, in order to ensure the improvement of logistics services for customers and prevent excess logistics services, enterprises should fully coordinate, discuss, and seek to reduce logistics costs with customers on the basis of considering the characteristics of users' industries and commodities. The way of logistics cost.

9 With the help of modern information systems

Enterprises must form efficient trading relationships with other trading companies, that is, with the help of modern information systems, on the one hand, various logistics operations or business processing can be carried out accurately and quickly; on the other hand, a logistics management strategy system must be established. In other words, the construction of a modern information system lays the foundation for the complete reduction of logistics costs, rather than passing on costs to other companies or departments.

10 Improve delivery efficiency

It is an objective requirement for the development of enterprise logistics to establish a short-term and correct purchase system corresponding to the ordering requirements of users. However, the costs associated with distribution should be reduced as much as possible, especially with the recent development of multi-frequency and small-unit distribution. Enterprises are required to adopt efficient distribution methods. Generally speaking, if an enterprise wants to achieve efficient distribution, it must pay attention to the management of vehicle distribution plan, improve the loading rate and vehicle operation management.

11. Cut Return Costs

The return cost is also an important part of the logistics cost of the enterprise. Returning goods will result in a series of logistics costs, expenses caused by damaged or unsalable returned goods, and various transaction costs such as personnel costs required to process returned goods. To prevent the cost of returning goods from being cut, the company must change the salesperson performance evaluation system.

That is to say, instead of taking the salesperson's monthly sales as the basis for rewards and punishments, but considering the user's inventory status, the salesperson's annual average monthly sales volume is used as the incentive standard, so as to improve operating efficiency while preventing returns. , Of course, the system must also clearly divide the responsibility for the return of goods.

12 Utilize consistent transportation and logistics outsourcing

It is realized through consistent transportation, that is, the transportation of goods from the manufacturer to the final consumer is realized by the organic connection of various transportation means, and the standardization of transportation means and the unification of transportation management are used to reduce commodity turnover. , Costs and losses in the reprinting process, and greatly shorten the time of goods in transit.

Logistics outsourcing service providers can enable a company to save transportation costs in terms of economies of scale and more "door-to-door" transportation, reflecting the advantages of using these professionals and technologies. In addition, some emergencies and additional costs Fewer issues such as air freight and rental cars increase the orderliness of work and the predictability of the supply chain.