Analysis On Activity-Based Costing Approach For JD Logistics Warehousing Operation (Nanning Area)

Abstract

This study aims to apply the Activity-based Costing (ABC) method to analyze and optimize the warehousing operations of JingDong(JD) Logistics, focusing on its Nanning Intelligent Logistics Park. As China's e-commerce sector grows, logistics costs remain a significant challenge, with warehousing identified as a key cost driver. By implementing the ABC approach, this research seeks to accurately allocate costs, identify inefficiencies, and propose targeted improvements in operational processes. The results of the study show that the ABC method yields lower costs compared to traditional costing methods, and that the total cost of the warehousing center accounts for 44.71% of the total cost of the park, with the cost of storage and custody operations accounting for 62.6% of the warehousing cost, the operation with the highest cost share. Between 2022 and 2023, the costs of this logistics park generally increased, particularly reaching annual peaks in November and December, reflecting increased pressure on operating costs. The study examines the park's cost structure and operational practices, offering insights into cost reduction and efficiency enhancement. In order to manage costs effectively, this study proposes a number of recommendations for improvement. This research contributes to the advancement of cost management practices in self-build logistics companies and offers valuable implications for the broader e-commerce logistics industry..