The storage cost management refers to the enterprise in the storage management of any necessary storage methods to take control means, the purpose of the lowest storage cost to achieve the pre-specified storage quality and storage quantity, including all efforts to reduce the storage cost.
1. Principles of warehouse cost management
Principle of economy
Saving is the saving of human, material and financial resources. It is the core of improving economic efficiency, the requirement of acting in accordance with objective economic laws, and also a basic principle of cost control.Under the guidance of this principle, we must set up a new concept of warehouse cost management: it should not only be negative restriction and supervision, but should be active guidance and intervention.
In the past, the cost management, at first only emphasized the analysis and inspection after the event, mainly focused on the strict implementation of the cost range and the rules and regulations, which actually belongs to the nature of "mending the late" protective control;Later, it developed to focus on the daily cost control. When it was found that it was actually out of the standard or budget, it immediately fed back to the relevant departments for intervention or adjustment, to correct the shortcomings and consolidate the achievements, which was essentially feedback control.But in order to carry out the principle of saving deeply in the future, the focus of cost control must be transferred to the control before the cost occurs, make a good economic forecast, fully tap the internal saving potential of storage enterprises, and make careful calculations everywhere, and work hard in double increase and double section.Only in this way, the loss and waste can be eliminated in advance, so as to "nip in the bud" and effectively play the role of feed-forward control.
The principle of comprehensiveness
Implementing the principle of comprehensiveness in warehouse cost management mainly has the following two meanings.
①. Full cost management
Cost is a comprehensive and strong economic index, which involves all the departments of an enterprise and the actual performance of all the workers.If we want to reduce costs and improve benefits, we must fully mobilize the initiative and enthusiasm of each department and each employee to pay attention to cost control.Mobilize the public to participate in cost management, of course, it is not to cancel or weaken the management cost of the professional institutions and professional personnel, but in a professional, on the basis of cost management, requires all, everything, all the time to be carried out in accordance with the quota standards or budget cost management, only in this way, to close gaps from various aspects, put an end to waste.
② The whole process of cost management
In modern society, we should give full play to the integrated role of logistics, and strengthen the cost management in the storage and other links.In other words, the scope of cost management should run through the whole process of cost formation.It has been proved that only when the life cycle cost of the product is effectively controlled can the cost be reduced significantly, and from the point of view of the whole society, only then can the real cost savings be achieved.
The principle of combining responsibility, power and interests
In order to make the warehouse cost management truly effective, we must strictly follow the requirements of the economic responsibility system and carry out the principle of combining responsibility, right and benefit.It should be pointed out that in the economic responsibility system, it is the responsibility and power of each member to control the cost of responsibility.Obviously, if the responsible unit does not have this power, there is no control.For example, any cost responsibility center has set certain standards or budgets. If they are required to fulfill the responsibility of cost control, they must be given the authority to decide whether a certain cost can be spent within the prescribed scope.Without such authority, of course, there would be no cost control.In addition, in order to fully mobilize the initiative and enthusiasm of each cost responsibility center in cost control, it is necessary to regularly evaluate and assess their actual performance, and closely linked with the economic interests of the workers themselves, so that rewards and penalties are clear.
The principles of management by objectives
Management by objectives, which came into being in the United States in the 1950s, refers to the enterprise management taking the established goals as the basis for the management of human resources, material resources, financial resources and important economic indicators.Cost management is an important content of management by objectives, it must be based on the target cost, as the criterion of enterprise economic activities to limit and guide, and strive to do with the least cost spending, get the best economic and social benefits.Since the target cost is as a goal to strive to achieve cost, then set target cost should be according to the specific circumstances of this enterprise, such as existing equipment conditions, the ability for business and technical level, the historical cost information, etc.), also want to consider to the enterprise's external conditions (such as the national financial policy, the market supply and demand situation, in the same industry at home and abroad the same kind department cost information, etc.), and then by using the special method of cost management and strategy, the best target cost.
The principle of exception management
"Exceptional management" is a special method used in the daily control of enterprise operation and management in western countries, especially in the daily control of cost indicators.
Daily cost control is mainly through the analysis and research of various cost differences, so as to find problems, excavate the potential of cost reduction, and put forward specific measures to improve work or correct shortcomings.However, in fact, the daily cost differences of each logistics enterprise are often complicated and too many to manage.In order to improve the efficiency of cost management, managers should not put their energy and time dispersed in all cost differences, the use of average power;Instead, we should highlight the key points and focus our attention on the key differences that are abnormal and not in line with the routine. We should trace them to the root cause, find out the reasons for the differences, and timely feedback them to the relevant cost responsibility center, so as to quickly take effective measures to manage them well, and give up the others.All these critical differences that are out of the norm and out of the norm are called exceptions.
2. The task of warehouse cost management
Warehouse cost management is to use the most economical way to realize the storage function, that is, under the premise of ensuring the realization of the storage function, how to reduce the investment as far as possible.The task of warehouse cost management is to conduct economic analysis on the logistics operation of enterprises, understand the economic phenomenon in the process of logistics, in order to create the greatest logistics benefits with the lowest logistics cost.In many companies, storage cost is an important part of the total cost of logistics, the logistics cost of high and low has a big impact, enterprise logistics system at the same time maintain inventory levels for the enterprise for production or customer service level plays an important role, warehousing cost management must be in place to ensure that the service level as the prerequisite.
Contents of warehouse cost management
The essence of warehouse cost management is to reduce investment as far as possible under the premise of ensuring the realization of storage function.This is an input-output relation problem, and also a reasonable problem of pursuing storage cost input.
"Inverse benefit" is a universal basic law in logistics activities.Undeniably, warehousing, as a necessary activity, is determined by its own characteristics, and often has the tendency to reduce the benefits of the logistics system and worsen the operation of the logistics system, so it has the "adverse" effect on social and economic activities.This effect is mainly caused by unreasonable storage and the quality changes and value losses of stored objects during storage.
Unreasonable storage is mainly reflected in two aspects: one is unreasonable storage technology;Second, the storage management, organization is unreasonable.Its manifestations are as follows:
①. Storage time is too long;
②. The storage quantity is too large;
③. The storage quantity is too low;
Insufficient or excessive storage conditions;
⑤. Imbalance of storage structure.
Quality changes that may occur during storage are mainly caused by storage time, environment, operation and other factors.The form of quality change mainly includes physical and mechanical change (physical existence state, leakage, odor, damage, deformation, etc.), chemical change (decomposition and hydrolysis, hydration, corrosion, aging, combination, polymerization, etc.), biochemical change, various biological invasion (rats, pests, ants), etc.
A variety of goods during storage may also occur value loss, such as sluggish loss, loss of time value, excessive storage costs, etc.
The quality change and value loss of these unreasonable storage and stored goods during the storage period will inevitably lead to the increase of storage cost, so that enterprise managers must strengthen the storage cost management from all aspects.
4.The significance of warehouse cost management
As a part of logistics cost management, warehousing cost management in the field of logistics also has a broad space to reduce costs, therefore, warehousing cost management logistics problems caused the enterprise management managers generally pay attention to.
Warehouse cost management is an important part of logistics cost management
Reducing warehousing cost and improving warehousing service level constitute the most basic subject of enterprise warehousing management.Storage cost management of the meaning is: through effective grasp of warehousing costs, use of warehouse and logistics benefits antinomy relationship between each factor, scientific and reasonable organization warehousing activities, strengthen the warehousing activities in the process of the effective control of costs, reduce warehousing activities in the consumption of materialized labor and living, to reduce total storage cost, improve economic efficiency of enterprises and social purposes.
Reduce inventory risk through warehouse control
In addition to outside the field assembly of large equipment, buildings, most of the general product realization production completely no inventory is very difficult to achieve our goals, general merchandise production of raw materials need to be just the right amount of safety stock, this is to guarantee steady production and an important means to promote sales, and damage against contingencies for logistics important emergency measures, such as traffic jam, force majeure, accidents, etc.;However, inventory means the increase of capital cost of stagnant capital operation, and will produce loss, waste and other risks.Risk reduction is achieved through inventory control. Inventory control usually includes inventory control, warehouse arrangement, replenishment control, delivery arrangement, etc.Using inventory control to reduce cost is one of the important contents of logistics management.
Warehousing activities help to reduce the logistics cost of the system
System logistics cost allocation in the specific process of operation, divided into storage cost, transportation cost, operation cost, risk cost.Warehousing cost is not only an important part of logistics cost, but also an integral part of logistics cost management.The control and reduction of warehousing cost can directly reduce logistics cost.The combination of products in storage, proper stowing, circulation packaging, group and other circulation processing is to improve the efficiency of loading and unloading, make full use of the means of transportation, so as to reduce the cost of transportation.Reasonable and accurate storage will reduce the change of goods, flow, reduce the number of operations;The use of mechanization and automation warehousing operations, is conducive to reducing the cost of operations.Good storage management can implement effective storage and maintenance of goods, accurate quantity control, greatly reduce the risk and cost.
Implement logistics value-added services through warehousing activities
Excellent logistics management not only needs to meet product sales, reduce product costs, but also should carry out value-added services to improve the income of product sales.The value of product sales mainly comes from the improvement of product quality, the expansion of functions, the time value of timeliness, the market value of peaking and leveling valleys, and the value-added of personalized services.Many value-added logistics services are carried out in the warehousing link. Through circulation processing, product quality is improved, function is changed, and product personalization is realized. Through the time control of warehousing, the production rhythm and consumption rhythm are synchronized, and the time utility value of logistics management is realized.Through the commodity integration of storage, carry out personalized services for consumption.
Balance the occupation of circulating funds through storage activities
Raw materials, products, finished products of industrial enterprises, and commodities of commercial enterprises are the main occupants of working capital. Inventory control is actually the control of working capital, and controlling inventory is the optimal balance of the overall occupancy of working capital of enterprises.Because, by increasing the order quantity can reduce the order cost and transportation cost, maintain a certain reproduction and raw materials will reduce the number of production exchange, improve work efficiency, warehousing and logistics cost management is to seek the best match between the two, in order to achieve the purpose of reducing the logistics capital.
Source: Shelf Industry Network
Post time: Jan-25-2021