<strong>China: STMA Reports Indexs of Cigarette Logistics Business Enterprises in 2013</strong>

Source from:  State Tobacco Monopoly Adiministration 02/20/2014

On February 14, the State Tobacco Monopoly Adiministration reported index results of cigarette logistics industry business enterprises.

The results including indexs of the single case logistics cost, the single case storage costs, the single case sorting cost, the single case distribution costs, the single case management cost, expense ratio of cigarette logistics and labor cost ratio, etc. indexs and per capita distribution efficiency, inventory turns, delivery time and average response time for delivery, etc. efficiency indexs of cigarette logistics business enterprises.

According to statistics, in 2013, cigarette industry business enterprises logistics cost incereased 4.55% year-on-year, which accounts for 0.89% of sales revenue, down 0.03% year on year; commercial enterprises' cigarette inventory turns decreased by 1.63%, the per capita average distribution efficiency increased by 2.11%, the number of logistics workers decreased 0.93% year on year, the number of delivery vehicles reduced by 1.01%, the mileage of distribution decreased by 0.77% year-on-year. Overall, the cigarette logistics total cost increased slightly year-on-year, the proportion of cigarette sales revenues have declined from a year earlier, and controllable costs decreased 7.46% year-on-year.

The report pointed out that between 2008 and 2013, cigarette commercial enterprises logistics total cost grew by an average of 7% a year, because of the increased amount of cigarette distribution, the logistics rate steady declined by 0.33%. While cigarette sales volume and retail customers number increased steady, the number of logistics workers, the number of delivery vehicles, and the mileage of distribution logistics continued to decline, the logistics artificial costs continued to rise, and controllable cost space reduced from 35.96% to 27.05%. Datas showed that although cigarette commercial enterprise logistics cost control space is smaller and smaller, in the total cost of business enterprises, the cigarette logistics cost control abilityand logistics operation and management level continued to rise. Enditem