How to understand the products and services of logistics enterprises

The type of logistics cost
Logistics costs generally have the following categories:
1. General classification: direct cost or operation cost and indirect cost;
2. Classification according to the scope of logistics function: transportation cost, circulation processing cost, distribution cost, packaging cost, loading and unloading and handling cost, storage cost;
3. According to the scope of logistics activities: supply logistics fee, internal logistics fee, sales logistics fee, recovery logistics fee and waste logistics fee.

The composition of logistics costs
Modern logistics cost is wider, throughout the course of business activities, including from raw material supply to the goods will be sent to achieve all of the logistics costs incurred in consumers' hands. Logistics cost according to the classification of different standards, according to the different, make the logistics cost can be divided into their own logistics cost and to entrust a third party engaged in the costs of logistics business or entrust logistics cost. If the logistics function, the logistics cost can be categorized as follows:

1. Transportation costs. Mainly including labor costs, such as transportation personnel salary, welfare, etc.; Operating expenses such as operating vehicle fuel costs, depreciation, highway transport management fees and so on; Other expenses, such as travel expenses, etc.
2. Warehouse cost. It mainly includes the cost of construction, purchase or leasing of warehouse facilities and equipment, as well as the cost of various warehousing operations.
3. Processing costs. It mainly includes the cost of circulating processing equipment, the cost of circulating processing materials, the cost of circulating processing labor and other expenses.
4. Packing cost. It mainly includes packaging material expense, packaging machinery cost, packaging technology expense, packaging labor cost, etc.
5. Handling and handling costs. It mainly includes labor costs, depreciation of assets, maintenance costs, energy consumption and other related expenses.
Six. Logistics information and management fees. This includes travel expenses, meeting fees, social fees, management information system fees and other incidental expenses incurred by the enterprise for logistics management.

The characteristics of logistics cost
There are many differences between logistics costs and other cost comparisons, but only two of them stand out. These two points are attributed to the phenomenon of logistics iceberg phenomenon and benefit back (alternating profit and loss).
Logistics iceberg phenomenon was Caesar fix Japan waseda university professor study about logistics cost problem of a kind of metaphor, the logistics profession, it has now been extended into one of the basic theory of logistics, see it as another kind of description of the doctrine of drucker.
Logistics iceberg theory is that, in the enterprise, the vast majority of the costs of logistics are mixed with other fees, and can be separately accounting item, only a small part of this part is visible, often misunderstood by people as he is the outline of the logistics cost, actually is just floating on the surface, can be seen the tip of the iceberg.
Alternate and losses of the phenomenon, is another characteristics of logistics cost, logistics cost of placing signage at many, the cost of different department management in enterprise is often in the field of domain, therefore, of the division of this department, makes unable to coordinate and optimize the logistics activities, tended to decline, the loss of profit in the long phenomenon is often. In fact, in any large system, there are often such contradictions between system elements, and the main purpose of system engineering is to seek the best of the whole from the system height.
The calculation conditions of logistics cost
According to the iceberg theory of logistics cost, there are many logistics costs hidden, and the logistics cost can be large and small, which is completely in the scope and method of calculation. Therefore, in the calculation of logistics cost, must first define the conditions. If you ignore the calculation conditions, the logistics cost will lose its meaning. The calculation conditions of logistics cost are: logistics scope, logistics function scope and accounting subject area.