Logistics Process Reengineering Mechanism and Measures Based on Activity Cost Information

Logistics service process reengineering becomes increasingly important to all logistics firms seeking competitive advantages. But the reengineering must rely on accurate logistics cost information. However, the traditional costing approach based on volume drivers doesn´t provide the information. Activity based management (ABM) can achieve great accuracy of logistics cost by using multiple drivers and is an advanced process reengineering method. According to the characteristics of business logistics activities, the mechanism of applying ABM to logistics process reengineering is analyzed amply for logistics enterprises, the logistics process reengineering procedures is designed for logistics enterprises. Moreover, the means and relevant ensuring measures of logistics process reengineering based on ABM are analyzed elaborately.