Which costs can be classified as explicit costs during the procurement process? There are three main types, including operating costs, express delivery costs, and warehousing costs.
(1) Operating costs
Operating costs can be divided into procurement plan preparation costs and procurement management costs
Procurement plans can help e-commerce companies better predict and master production plans, ensuring that operating costs are reduced while meeting product production requirements. When preparing procurement plans, e-commerce companies need to conduct a comprehensive market analysis and adjust orders, evaluate and select suppliers based on this. The costs consumed during procurement are procurement management costs, which mainly include bidding costs, construction costs, entertainment costs, office expenses, and travel expenses.
(2) Express delivery costs
Cargo transportation incurs costs, the most important of which is express delivery costs. For e-commerce companies, choosing the right transportation method can save a lot of express delivery costs. In particular, large-scale e-commerce companies should pay more attention to the transportation link, plan routes reasonably, and minimize express delivery costs.
In addition, goods shipped from suppliers usually need to be inspected and can only enter the warehouse after passing the inspection. In order to prevent goods that do not meet the requirements from entering the warehouse, e-commerce companies must strictly control the inspection. If the problem is not discovered until the goods enter the warehouse, the e-commerce company will need to bear the express delivery fees for returning or exchanging the goods.
(3) Storage costs
Storage costs refer to the costs incurred when goods are stored. First, the goods should be stored properly and it is best to classify them. For example, pay special attention to some special goods, including goods that are easily damaged or deteriorated. Secondly, establish and properly keep inventory files and take inventory of goods in a timely manner. If there are too many backlogs of goods, storage costs will also increase. Therefore, scientific and reasonable storage management is an effective measure to reduce storage costs and procurement costs.
Tips
In procurement costs, explicit costs usually account for more than 60%. Therefore, if e-commerce companies can understand explicit costs and effectively control them, procurement costs will be further reduced and their own market competitiveness will surely be improved.