Kerry Logistic Hong Kong

Kerry Logistic Hong Kong is an Asia's premier logistics service provider. It has the largest network in China and Asia. Its base of operations in Asia and a strong focus on China, Kerry Logistics consistently deliver the best logistics solutions to make its customers successful. Its business operates in 24 countries, owns over 15,000 employees, manages 8,000 trucks and has 2.4m square meters of logistics facilities. Its core business encompasses integrated logistics, international freight forwarding and supply chain solutions. Its core business encompasses integrated logistics, international freight forwarding and supply chain solutions. Another services include: cold storage, warehouse, logistics management and transportation services, air cargo carriers, carriage of Goods by Sea, distribution and allocation of goods, container Terminal Warehouse (Warehouse), logistics management and consultants, wine storage and transportation.

There are some characteristics that make the use of Activity Based techniques particularly useful.

Competitive environment:

Activity-Based techniques have the advantage in competitive with other companies.(http://www.executiveeducationinc.com/file/abpa.doc) Under Activity-Based techniques, every cost of service can be clearly and accurately reflected. The costs are allocated to the relevant services by the cost drivers. It will not include in other cost which made by other services. Therefore, when mangers set prices on services, the prices will not be overstated. If other companies are not using Activity-Based techniques but with traditional costing approach, the prices that they offer may be higher (http://www.executiveeducationinc.com/file/abpa.doc). Because of Kerry Logistic using Activity-Based techniques, it can set an appropriate price of service. And the price is lower than companies which is still traditional costing approach. In other words, lower price can attract more customers, and increase a company's competitive.

Besides, Activity-Based techniques can help to control the cost effectively because it can help managers to understand the use of resources in each logistic service through analyzing the cost centres and their relative cost. (http://ais.idv.tw/channel/q076.htm#RQ076-1)For example, in the Kerry Logistic, mangers can understand how many resources need to add in the services such as transportation, storage etc. Managers can depend on cost of services and decide the use of resources into them. Also, the non- value added activities will not be considered under Activity-Based Costing. Therefore, the resources can be used in the services appropriately and effectively and prevent unfair distribution of resources in difference services so the operating cost can be controlled effectively and may be reduced. Reducing operating cost, the profit of company will increase. So, the company's competitive can also increase.

2. Customers services:

Logistic is a Service industry. So, providing good services to customers is a very important part in a logistic company. Many of current logistic companies, there are no standard price for service