Warehousing costs analysis of the management

Storage cost management is the means of control in the enterprise storage management aspects of any necessary warehousing operations approach taken, the purpose is to achieve the lowest cost storage warehouse store quality and quantity predetermined, including all efforts to reduce storage costs. Warehousing cost management principles Principle 1 savings Is to save manpower, material and financial savings, it is to improve the economic efficiency of the core, in accordance with the requirements of the objective economic laws, is a fundamental principle of cost control. Under the guidance of this principle, we must establish a new warehouse cost management concept: it should never be just passive restrictions and supervision, but should be positive guidance and intervention. Past cost management, but he stressed that the first post-analysis and inspection, focusing primarily on the strict implementation of the rules and regulations and the cost of expenditure range, which actually belong to the "remedial" in nature protection controls; and later developed to focus on the daily cost control when it found that the actual graduation criteria or budget, immediate feedback to the relevant departments to intervene or regulate, to correct shortcomings, consolidate results, which are essentially within the feedback control. But in the future in order to further implement the principle of conservation, the focus must shift to cost control cost control in advance before the occurrence, good economic forecasts, warehousing enterprises to fully tap the potential of internal savings, everywhere carefully, in double by double aspect relentless efforts. The only way to eliminate the losses and waste in advance, so that "preventive measures", effectively play the role of feedforward control. 2 comprehensiveness principle The implementation of the principle of comprehensiveness in storage cost management, meaning mainly the following two aspects. ①. Full cost management Cost is very comprehensive economic indicators, which involves all parts of the organization and all employees work performance. To reduce costs, improve efficiency, we must fully mobilize every sector and every employee concern cost control initiative and enthusiasm. Of course, mobilize the masses to participate in the cost of management, not to abolish or weaken the administrative costs of institutions and full-time professionals, but on the basis of professional cost management, based on the requirements of everyone, everything, and always should be fixed in accordance with the standard or budget costs management, the only way to plug the loopholes in all aspects, and eliminate waste. ②. The whole process of cost management In modern society, we should give full play to the role of integrated logistics, warehousing and other involved in all aspects of cost management must be strengthened. In other words, the scope of cost management throughout the entire process should cost formation. Practice has proved that the entire life cycle cost of the product has been effectively controlled, the cost will be significantly reduced only when, and from the perspective of society as a whole, only this is the real cost savings. Principle 3 responsibilities, rights and benefits of combining To manage storage costs really play a benefit, must be strictly in accordance with the requirements of the economic responsibility system, implement responsibilities, rights and benefits of combining the principles. It should be noted, in the economic responsibility system, the control costs are the responsibility of each member of the bounden duty, but also a kind of power. Obviously, if there is no responsibility for such power units can not be controlled. For example, any cost responsibility center have developed a certain standard or budget, if asked to complete cost control duties, they must be granted within a predetermined range to decide whether an expense can be spending powers. Without this power, of course, not to mention what cost control. Further, in order to fully mobilize the various cost centers in cost control responsibility initiative and enthusiasm, we must also regularly evaluate their performance and assessment, and closely linked with the economic interests of workers themselves, so that penalties and rewards. 4 principles of management by objectives Target management is the 1950s in the United States generated, it refers to corporate management to set objectives as the management of human, material, financial and economic indicators of the important foundation. Cost management is an important part of management by objectives, it must be based on objective cost as economic activity of the enterprise to be limiting and guidance criterion, and strive to achieve the least cost expenses, get the best economic and social benefits. Since the goal of cost as a goal to be trying to achieve, then the cost of setting goals on both the specific circumstances of the enterprise (such as the existing equipment conditions, operational and technical capabilities, historical cost information, etc.), but also taking into account the business external conditions (such as national financial policy, market supply and demand, domestic industry with similar sector cost information, etc.), and then using a special method and cost management strategies, develop the best target cost. Principle 5 Exception Management "Management by exception" Western countries is a special method of control used in everyday business management, especially in the daily control of the cost index of applications even more. Daily cost control mainly through the analysis and study of the various cost difference, which found the problem, and tap the potential to reduce costs, improve their work or specific measures to correct the shortcomings raised. But in fact, the daily cost difference appears each logistics companies, often hydra-headed, very tube tube. In order to improve the efficiency of cost management, management time and energy should not be dispersed on the entire cost difference, with an average power; but should be focused, to concentrate on those belonging unusual, unconventional key the difference, they want to source of all, to identify the reasons for differences occur, and timely feedback to the relevant cost center responsibility, take prompt and effective measures to put them to good pipe up, others are not asked to give up. All these are not normal, it does not meet the conventional key difference, called "exceptions." Warehousing costs manageable tasks Storage cost management is the most economical way to achieve storage function, that is, under the premise of ensuring storage function to achieve, how to minimize inputs. Warehousing cost management is enterprise logistics tasks for economic analysis to understand the logistics process of economic phenomena, to the lowest logistics cost to create the greatest efficiency of logistics. In many companies, the cost of storage is an important part of the total cost of logistics, has a great influence on the level of logistics costs, while enterprise logistics system to keep inventory levels for businesses to provide customers with the level of service or production plays an important effect, warehousing cost management in order to ensure a certain level of service as a precondition. Content storage cost management Essence warehousing cost management, is the premise of ensuring storage function implemented to minimize inputs. This is an input-output relations, but also an investment in the pursuit of warehousing costs reasonable question. "Trad" is the logistics activities ubiquitous basic law. Admittedly, warehousing as a necessary activity, by itself determine the characteristics, benefits are often offset the logistics system, the deterioration of the logistics system is running, it has a "reverse" effect on socio-economic activities. This effect is mainly due to the unreasonable storage and storage losses and value of quality changes that occur during storage is caused. Unreasonable stored mainly in two aspects: First, storage technology is unreasonable; the second is the storage management, organizational unreasonable. Its main manifestations are: . ① prolonged storage; . ② excessive number of storage; ③ low storage quantity.; . ④ deficiency or excess storage conditions; ⑤. Storage structural imbalances. Quality goods changes that may occur during storage storage time is mainly due to factors, environmental, operational and other causes. There are major changes in the form of mass physical and mechanical changes (physical presence status, leakage, odor, damage, deformation, etc.), chemical changes (decomposition and hydrolysis, hydration, corrosion, aging, compounds, polymerization, etc.), biochemical changes, each kinds of biological invasion (rodents, insects, ants) and the like. A variety of goods can also occur during storage loss of value, such as sluggish loss, loss of time value, high storage costs. These changes in the quality and value of losses to be unreasonably storage and storage that occurred during storage, it will inevitably lead to increased storage costs, so that corporate managers must strengthen all aspects of warehouse management costs. Warehousing cost management meaning As part of the logistics cost management, cost management in the field of logistics warehouse there are vast reduce the cost of space, therefore, warehousing logistics cost management problems caused by the widespread attention of business managers. 1 storage cost management is an important part of the logistics cost management Reduce storage costs and improve service levels warehousing enterprises constitute the basic storage management issues. Meaning that storage management costs: through effective grasp of storage costs, the use of the benefits of individual elements of warehousing and logistics back against the relationship between science, rational organization of warehousing activities to strengthen the effective control of the activity during warehousing expenses, reduce warehousing activities materialized labor and living labor consumption, which can reduce the total cost of storage, the purpose of improving business and socio-economic benefits. 2 storage control by reducing inventory risk Except in the field assembly of large equipment, buildings, the vast majority of production is completely non-GM product inventory is exceedingly difficult to achieve the target, the production of raw materials general merchandise needs to be an appropriate amount of safety stock, which is to ensure stable production and to promote sales of important means, but also against an important means of emergency contingency logistics cause damage, such as traffic congestion, the occurrence of force majeure, accidents and so on; but it means that the cost of capital stock capital increase operation of stagnation, and will generate losses, waste and other risks. Through inventory control to reduce risk, inventory control generally includes inventory control, warehousing point arrangements complement the work of control in live arrangements. Use inventory control to reduce costs is an important part of logistics management. 3 storage systems help reduce the cost of logistics activities System Logistics cost sharing in the specific operation being divided into warehousing costs, transportation costs, operating costs, risk costs. Storage costs not only an important part of the logistics costs, as well as the implementation of the overall logistics cost control link management. Control and reduce storage costs directly implemented to reduce logistics costs. Portfolio in the warehousing, loading and circulation proper packaging, distribution processing and other groups is to improve handling efficiency, make full use of the means of transport, thereby reducing transportation costs expenses. Reasonable and accurate warehousing of goods facelift will reduce the flow, reducing the number of operations; use of mechanization and automation of warehousing operations, help to reduce operating costs. Excellent warehouse management can implement effective commodity storage and conservation, accurate quantity control, greatly reducing the cost of risk. 4 to achieve value-added logistics services through warehousing activities Excellent logistics management will be met not only product sales, reduce product costs, and should be value-added services, improve product sales revenue. Value of sales comes mainly from the improvement of product quality, expansion, timeliness time value, the market value of clipping Pinggu, personalized service and other value-added features. A number of value-added logistics services warehousing sectors were to improve product quality through distribution processing, change the function to achieve personalized products, by controlling storage time, so that the pace of production and consumption rhythm synchronization, realize the value of time logistics management utility; by warehouse integration of goods, to carry out consumer personalized service. 5 warehouse activities by balancing the flow of corporate funds occupancy Industrial enterprises raw materials, products, finished products, commercial enterprises are the main occupation of part of the commodity liquidity, inventory control is actually working capital control, inventory control is to balance overall occupancy optimal corporate liquidity. Because the order quantity can be reduced by increasing the ordering and transportation costs, to maintain a certain reproduction and raw materials will reduce the number of production and exchange, improve work efficiency, logistics cost management is to find the best match between the two described above, in order to reduce purpose logistics funds.