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Logistics Cost Management

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Logistics Cost Management
Jiangsu College of Information Technology
International Academy for Business and Administration

Logistics cost management

Thesis Paper
Supervised by: Prof. Dr. Siegfried Harmeling

Student’s name: Li Li
Student’s number: 05213116

Date: May 31, 2008

Synopsis
In recent years, the logistics industry of China is developing rapidly. Even some big-size enterprises fizz in the first, second and third industry. It has become the huge and complex industry. The status of the logistics industry is more and more important. As we know, the production industry must rely on the support of all kinds of logistics activities. All process of production started from purchasing require the relative logistics activities to store the materials. Otherwise, the production is difficult to start. During the process of production, it also needs the logistics processes of raw materials and semi finished goods. It is also called manufacturing logistics. It realizes the liquidity of manufacturing. Some remained materials that can be recycled needs recycled logistics. Therefore, the whole manufacturing process contains all kinds of logistics activities. Reasonable and morden logistics reduce the costs, optimize the stock structure, reduce the tied-up capital, shorten the manufacturing period by reducing the expenses. And then ensure the effectively running of morden manufacturing, and advance the society progress.

Content

1. Introduction
What is logistics? What is logistics costs and its elements? The situation of logistics costs in America, Japan and Europe. ………………………................................................................................4

Body:
2.The problems during the logistics costs management we should face and the countermeasure…………………………………………………………………………………………9
3.The approach of reducing the logistics total costs. ……………………………………………….....10
3.1 Reducing the logistics total costs by the point of view of the whole flowing process. 3.1.1

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