Detailed explanation of cross-border e-commerce logistics cost control and optimization strategies

Basic principles of logistics cost control

Logistics cost control is a behavior that exerts active influence on the process of cost occurrence and formation as well as various factors and conditions that affect costs based on planning objectives to ensure the realization of logistics cost plan management. Logistics cost control includes ex-ante control, in-process control and ex-post control of costs. Pre-cost control is the most important link in the entire cost control activity, which directly affects the cost of each operation process in the future. Prior cost control activities mainly involve the construction control of cross-border logistics distribution centers, the allocation control of logistics facilities and equipment, and the improvement control of logistics operation processes, etc.

Logistics cost structure

Logistics costs usually consist of multiple components such as warehousing costs, transportation costs, information costs, and management costs. Warehousing costs include order costs, cargo interest, cargo depreciation and loss, purchase costs, warehousing costs, picking costs, distribution costs, circulation processing costs, handling costs, depreciation of various warehouse facilities and equipment, various labor costs, etc. Transportation costs include related unit transportation costs, various costs of vehicle use of the unit (such as insurance premiums, annual inspection fees, fuel costs, road and bridge tolls, depreciation fees, maintenance fees, labor costs, etc.) and service fees of third-party logistics platforms, etc. .

Cost control methods

Logistics cost control methods are divided into two types: absolute cost control and relative cost control. Absolute cost control aims to control cost expenditures within an absolute amount and control logistics costs by saving various expenses and eliminating waste. Relative cost control is to seek the control method to achieve optimal economic benefits under certain constraints through comparative analysis of factors such as cost and output value, profit, quality and function.

Specific measures for cross-border logistics cost control

Improve transportation route optimization

Cross-border logistics companies can reduce transportation time and costs by improving transportation routes. Various optimization algorithms such as mileage saving and scanning are used to optimize transportation routes.

Choose the appropriate shipping method

Cross-border logistics companies can choose appropriate transportation methods based on cargo characteristics and customer needs. For example, for goods with high timeliness requirements, you can choose air transportation; for bulk goods, you can choose sea transportation or rail transportation.

Improve packaging design

By improving packaging design, reduce packaging costs while improving the protection and aesthetics of packaging.

Choose the right logistics service provider

Choose the right logistics service provider by comparing the price, service quality and reputation of different logistics service providers.

Strengthen logistics management

Adopt modern logistics technology, such as logistics tracking systems, electronic data exchange, etc., to strengthen logistics management.

Choose logistics outsourcing

Outsource logistics business to professional logistics service providers to reduce logistics costs and improve logistics efficiency.

Establish a logistics center

In order to improve logistics efficiency and reduce logistics costs, logistics centers can be established in the market.

Application of strategic cost management tools

Use strategic cost management as a tool to control logistics costs, breaking the limitations of traditional cost management that is limited to accounting data.

Reasonable tax avoidance

Tariffs can be reduced by using international tax havens and other methods, but factors such as the tariff savings from transshipment and the resulting increase in freight charges must be taken into consideration.

Establish a cooperative relationship with logistics platform

Establish a cooperative relationship with the logistics platform to promote the logistics platform to improve its infrastructure, make the transportation process more transparent, and reduce lost goods, damage, delays, etc.

Conclusion

To sum up, cost control and optimization of cross-border logistics are crucial to the operation and development of cross-border e-commerce companies. Only by continuously optimizing transportation costs can we improve the competitiveness and profitability of cross-border logistics companies and provide better logistics services for the development of cross-border e-commerce sellers.