Mode selection based on the logistics of the enterprises own
situation
Abstract: The main research direction is different enterprises according to their
analysis of the advantages and disadvantages of the different logistics mode can
be selected with good logistics form, in order to achieve the purpose of
maximizing corporate profits. By contrast, respectively referenced real case
specific analysis of two logistics mode, and summarize their advantages and
disadvantages.
Keyword: self logistics; outsourced logistics; hybrid logistics mode
Text
1 The significance of this stud
Business activities, an important goal for each enterprise in terms of business
is based on the minimum investment for maximum benefits. However, in todays
conditions, the cost of production has been compressed to a certain extent, it is
particularly important as “the third profit logistics cost contro l”. As an important
part of the logistics industry, penetrate into all their business activities, its model
is also different. The only choice for different enterprises, the logistics models
suited to their own conditions, in order to achieve optimal profits.
At present, there are mainly two: self-logistics, outsourcing logistics logistics
model. Both logistics model has its own advantages and disadvantages, for better
analysis to the comparative study of the two modes.
2 Two major logistics mode
2.1 Self-Logistics Mode
Self logistics mainly refers to industrial enterprises in the logistics business,
while its main source of income is not the logistics. Self logistics system, the
most typical is the Haier Group.
Haier Logistics characteristics can be summed up as, with the strength of the
logistics professional company, self based on outsourcing, the overall
procurement JIT (just in time, just-in-time production management), raw
materials and distribution JIT. JIT the synchronization process and finished goods
distribution. 1999, Haier implemented as a link to the market chain business
process reengineering, order information flow, driven by the operation of the
logistics, business flow, capital flow and logistics operation mode increasin
cause for concern. Terms of Haier, logistics first target is to get three zero, that
is, zero inventory, zero distance and zero working capital; Secondly, to enable
them to obtain the core competencies in market competition to win.
If Haier logistics as to reduce the cost of the machine, the U.S. group put the
logistics as a money-making machine. Midea Group was established in January
2000 the the Andhra logistics company, spun off the logistics business. Division
Andhra logistics company as Group is an independent, third-party logistics
companies other beauty products division, on the one hand to provide the most
efficient logistics services for the beautiful production, manufacturing, sales, as
well as a professional logistics company out business development.
As can be seen by the above-mentioned cases, enterprises import and stron
ability to control all aspects of the logistics supply chain. Easy production and
other business links closely with full service in the operation and management of
the enterprise, to ensure that companies have access to long-term and stable
profits. For a highly competitive industry, is conducive to the control of supply
and distribution channels, reasonable planning and management processes,
improve the efficiency of logistics operations, reduce circulation costs. For larger
single product enterprises, import and logistics can make logistics and capital
flow, information flow, business flow with more closely, thereby greatly Tinan
logistics operation is the far side price work efficiency. Can make the raw
materials and spare parts procurement, distribution, and production support from
the strategic integration, to achieve the procurement time, increase the batch.
Reduce bulk, inventory-control, to reduce the amount of funds used to reduce the
cost, in order to achieve zero inventory, up close and military working capital.
Import and logistics model while the size of the business situation, there are
certain requirements: self-logistics enterprises increased burden on business
investment, weaken the ability to withstand market risks. Companies in order to
self-logistics, we must invest a lot of money for storage equipment, transpor
equipment, and human capital, which will inevitably reduce the enterprises of
other members to be part of the investment, weaken the market competitiveness
of enterprises. In this case, the enterprise self logistics is equivalent to forcing
companies to engage in not good at business activities, corporate managemen
often takes too much time, energy and resources to engage in supporting the work.
Results f t auxiliary on no arrest, the business of the key pieces of hair can not
be stuck to the central role of nail limited scale, the degree of specialization of
logistics is very low, the cost is higher.
Only like Haier, Midea such a large scale, economic conditions, the strength
of the company management to control; some smaller businesses, to logistics
proportion of investment is t large and lead to business can not function
properly. For small businesses. Wear a limited number of its production, white
business logistics, not the formation of scale. The one hand lead to the Bureau of
logistics costs over products: the lower the competitiveness of the market die;
another - aspects, due to the limited size, the degree of specialization of logistics
is very low, and can not meet the needs of the enterprise.
2.2 outsourced logistics mode research
Outsourcing logistics, production or sales enterprises to concentrate and
enhance core competitiveness, and its logistics business to operate in a
professional logistics company, is a long-term contract commissioned strategic
mutual penetration, mutually beneficial business commissioned and contract
execution. The trend of economic globalization, the logistics outsourcing as a
material circulation speed, to save on storage costs and reduce the effective means
of transit funding backlog can really bring more revenue to the supply and
demand sides.
Electrolux Logistics completely outsourced to a third-party logistics
companies, third-party logistics providers to provide them with the whole or any
part of the supply chain logistics services, in order to obtain a certain profit. 1995,
Electrolux Electrolux Italy Refrigerator Co., Ltd. joint venture, a clear division of
responsibilities, Electrolux is only responsible for production, while Italian
refrigerator plant solely responsible for the sales and after-sales service of the
product. Subsequently, of Electrolux in turn logistics outsourcing to a
professional logistics company. Electrolux Logistics referred to the PG Logistics
Group, including the three logistics company responsible for.
This logistics model does not take up a lot of fixed assets, and more freedom
to coordinate production operations, strengthening the flexible management of the
enterprise, so that enterprises can focus on improving the core competitiveness.
This model also has its own shortcomings: the companies can not directly control
the master logistics functions, and can not guarantee the arrival of good quality
and customer service in a timely manner, give a third party logistics third profit
source, reducing their profits. In addition, companies also need to bear the risk of
inefficient logistics company, but with the constant improvement of the services
of the third party logistics enterprises, more and more companies have chosen this
logistics model.
Chinas logistics market has considerable development potential for
third-party logistics will be promising. Compared with developed countries, the
overall level of Chinas logistics industry is still in its infancy, the industry is not
highly competitive logistics market in the state is to be developed to a greater
extent. National Warehousing Association 2000 survey data analysis, the majority
of the Chinese logistics needs are not yet market-oriented production enterprise
procurement logistics, the use of third-party logistics business logistics only 18%
and 5.9% respectively, even the use of third-party logistics companies, the actual
logistics outsourcing is only about 50%.
In summary, the enterprises both select what kind of logistics system
analysis should be carried out according to the own scale, demand, economic and
management strength, select the more suitable for their current situation and
future development of the logistics. Logistics has become a powerful tool for
enterprises to reduce costs, increase profits, rather than become a heavy burden
for the development of enterprises.
3 Conclusion
Diversified in the consumer market, the personalized needs of todays rapidly
changing social needs and technology advances, mass production manufacturing
enterprises have been unable to meet the demand of the market development. The
differentiated marketing flexible production has become the future development
trend, enterprises must adopt more variety, less bulk, multiple batches of logistics
strategy, if companies want to implement for the purpose of improving service
logistics management purpose, the the dispersion of the logistics operations will
be further expanded, decentralized logistics operations will be offset against the
benefits of system management. Therefore, the value of the combined scale
advant
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