The Background and Prospect of the Third Party Logistics in China

Development Status of Third Party Logistics in China

At present, mainland third-party logistics enterprises can be roughly divided into four categories according to their formation structure:

The first category is a logistics enterprise that occupies a large market share and is transformed from a traditional warehousing and transportation enterprise. Representatives are Sinotrans, COSCO, Postal Service, China Railway Express, China Storage and CIMC. With the advantages of the original logistics business foundation, market, business network, facilities and enterprise scale, we will continue to expand and extend other logistics businesses and gradually transform into modern logistics enterprises. Its characteristics are as follows:

Have a relatively complete national network, large scale, strong financial strength, originally based on transportation, or warehouse storage, have rich experience in their own professional fields;

They have upgraded their transformation to a modern logistics enterprise to a strategic level, and are currently expanding their service areas and actively expanding integrated logistics services; The advantages of the network are difficult to really play out. The local subsidiaries of such companies are independent accounting companies. Therefore, although they are all national companies, there is a lack of information communication between local outlets, and operations cannot be coordinated and resources cannot be effectively utilized. Unless it is a big customer, it is difficult for most customers to enjoy more comprehensive logistics services, and all outlets are actually in a decentralized node state, and the network has not really formed;

The price is not competitive. Such enterprises can generally provide transportation and warehousing services, but because of their large scale, they have to bear huge labor costs, and their prices are slightly higher than those of regional small and medium-sized logistics enterprises;

The service consciousness is not strong and the service quality is poor. Except for Sinotrans and COSCO, which have many years of foreign-related business experience, other enterprises still have backward concepts and pay insufficient attention to customer needs. Some enterprises still have traces of industry leaders, with poor flexibility and low operational efficiency.

The second category is the newly established state-owned or state-controlled new logistics enterprises, mainly local commercial storage and transportation enterprises, which are the products of modern enterprise reform, with relatively perfect management mechanism and rapid development. For example, China Shipping Logistics Company, whose logistics business started from warehousing, has now developed into a third-party logistics enterprise that can provide multi-functional logistics services including warehousing, transportation, distribution and customs declaration for large internationally renowned multinational companies.

Its main features are:

Generally, relying on the original storage system and having its own fleet, it can provide basic services such as transportation and storage in the region; Low service price; With the intensification of market competition, they also began to constantly improve their ability to meet the needs of customers. With continuous accumulation, a single enterprise can do better.

Its existing problems are: it can not become a national enterprise yet; The warehouse structure and facilities are relatively old; Due to the institutional problems left over from history, most enterprises have a heavy burden; In terms of management methods and understanding of logistics services, most enterprises are still limited to traditional, separated and single basic business.

The third category is foreign-funded and Hong Kong-funded logistics enterprises. On the one hand, they provide extended services for the original customers-multinational companies to enter the China market; on the other hand, they attract China enterprises with their business philosophy, business model and quality services, and gradually penetrate into China logistics market, such as Chase, Golden Tree, Amoi, Maersk, Baolong Foreign Firm (EAC), Hutchison Whampoa, Yingcha pe, Sea and so on.

Foreign companies have advantages in capital, talents, ideas, management methods, services and technology (especially IT). With these advantages, they occupy most of the logistics supply market of foreign-funded enterprises. At present, many multinational companies have cooperated with domestic logistics enterprises in the form of alliances or mergers and acquisitions to set up specialized logistics companies. They searched for domestic partners with great fanfare, and some of them succeeded, such as the alliance between DHL and Sinotrans, and the cooperation between FedEx and Daejeon to expand the network. But at present, most of the alliances are international express delivery companies, and more multinational logistics companies will seek cooperation with domestic powerful logistics enterprises in the future.

The fourth category is the emerging cross-regional private logistics enterprises, which are the most dynamic third-party logistics enterprises in China due to their flexible mechanism and low management cost. Such as Baogong, Jiuchuan and Xinjie Logistics.

Its main characteristics are as follows: as a latecomer to the market, its positioning is generally to become a professional third-party logistics service provider; In order to enter the market in a short time and avoid the risk of large investment in logistics facilities and long payback period, many companies adopt the non-asset third-party logistics agency model; The service level is similar to that of foreign-funded logistics enterprises, but the service area is wider, not limited to big cities and coastal areas; Compared with foreign-funded enterprises, it has greater adaptability and flexibility in the operation of the local market; In terms of service, management mode and application of modern information technology, it is higher than domestic ordinary logistics enterprises.

The existing problems are: the price is relatively high; Limited financial strength, limited business expansion, scale expansion and network laying; As a new enterprise, it has not accumulated enough experience in basic business operation.

To sum up, in terms of the scope and functions of providing services, China's third-party logistics enterprises still mainly provide basic logistics services such as transportation and warehousing, and the value-added services such as processing, distribution and customized services are in the stage of development and perfection. According to the survey of China Storage Association, the outsourcing logistics of production enterprises accounts for 2 1%, trunk transportation accounts for 36%, local distribution accounts for 28%, and packaging accounts for 4%. In the outsourcing logistics of commercial enterprises, simple warehousing accounts for 37%, trunk transportation accounts for 265,438+0%, local distribution accounts for 43%, and packaging accounts for 65,438+04%. It can be seen that the outsourcing logistics of production enterprises and commercial enterprises is mainly "subcontracting", that is, entrusting different functions to different enterprises. From the perspective of logistics supply, the proportion of third-party logistics enterprises providing users with a package of services is not large.

With the rise of logistics fever, the third-party logistics has developed by leaps and bounds. From a macro point of view, from 1999 to 200 1 year, China Storage Association conducted three sampling surveys on the supply and demand of the logistics market. The results showed that the proportion of third-party logistics in the finished product sales logistics of production enterprises was 9. 1% and 16. 1% respectively. From the microscopic point of view, domestic logistics enterprises have improved in quantity and quality. In 200 1 year, there were more than 120 enterprises registered as "logistics" in Beijing alone, and by the end of 200 1 year in Shanghai, there were more than 1000 enterprises with the name of "logistics". Moreover, the logistics service function has been significantly improved, and there have been logistics enterprises with both scale and efficiency like COSCO Group and Sinotrans Group. Some analysis shows that with China's entry into WTO, the annual growth rate of third-party logistics services will reach more than 10% in the first decade of 2 1 century; The annual growth in recent five years may reach more than 25%.

However, we should also calmly see that the overall scale of the third-party logistics service in China is small, and the service level is low. The third-party logistics only stays at a certain level or a certain link, and has not yet achieved the overall service from raw material supply to commodity sales, or even formed a real network service advantage, which constitutes the crux of the development of the third-party logistics in China.

Enlightenment from the Development of Third Party Logistics

With China's entry into WTO, the internationalization of the domestic market will be further accelerated, and more foreign logistics suppliers will enter the domestic logistics market, which will pose a severe challenge to the third-party logistics industry in China. The urgent task is to take advantage of the short transition period from 2002 to 2005 and take effective measures to accelerate the development of third-party logistics in China and narrow the gap with developed countries.

1. Accelerate the reform of property rights and stimulate the vitality of enterprises.

Most of the existing logistics enterprises in China are transformed from warehousing and transportation enterprises, with many relics of planned economy. Practice has proved that it can no longer adapt to the international market competition. Therefore, it is necessary to establish a joint-stock enterprise with diversified stock rights, and the ownership and management rights are completely separated, so as to ensure that the enterprise operates according to market rules, stimulate the vitality of the enterprise and accelerate the transformation to the modern logistics industry. Especially for large enterprises, on the one hand, we should optimize the allocation of internal resources; On the other hand, it is necessary to use the power of the capital market to go public, overcome the defects of insufficient capital and promote the rapid growth of enterprises.

2. Vigorously cultivate competitive logistics groups.

The survey shows that time, price and safety are the most important things for enterprises to choose third-party logistics enterprises. At present, most enterprises think that there are no local logistics enterprises that meet the requirements. First of all, it means that logistics enterprises can't meet the demand of transporting their products to various places at reasonable prices within the specified time.

This reflects the requirements of enterprises for logistics companies at three levels: first, to ensure low prices; The second is to ensure time; Third, the network is sound, and it can undertake most or all transportation services in different directions. This requires that the third-party logistics enterprises must have a certain scale and provide all-round services. At present, many third-party logistics enterprises are transformed from storage and transportation enterprises in commerce, materials, food and other departments during the planned economy period, all of which have specific service areas and have little competition with each other. In order to meet the needs of fierce competition after China's entry into WTO, we must break the restrictions of business scope, industry, region and ownership, play a game of chess all over the country, integrate logistics enterprises, encourage strong alliances and form large cross-regional groups. Only through mergers and acquisitions can we extend our reach overseas, rationally optimize the allocation of resources, improve our business network and participate in international market competition.

3. Improve the application level of information technology and strengthen the construction of logistics nodes.

The perfection and development of logistics informatization and networking is not only one of the important symbols to measure modern logistics enterprises, but also a solid and reliable foundation for the development of modern logistics enterprises. Now many multinational logistics enterprises in the world have "first-class three networks", namely, order information flow, global supply chain resource network, global user resource network and computer information network. With the help of information technology, an extensive e-commerce service network is established, which enables enterprises to integrate business processes and integrate into customers' production and operation processes, thus establishing an "efficient transaction" management and production model. Especially in the new situation of joining WTO, the logistics market has expanded from domestic to international, and it is more and more important to have a network extending in all directions. In order to gain competitive advantage, enterprises must do a good job in network construction from two aspects: on the one hand, they should establish a tangible network according to the actual situation, and if the enterprise model is large and there are many businesses, they can build their own business outlets; If there is only sporadic business, we can consider cooperating with other logistics enterprises to build and use outlets; You can also establish joint ventures or cooperation with major customers to establish outlets. On the other hand, it is necessary to establish an information network, realize resource sharing between logistics enterprises and customers through information technologies such as Internet, management information system and data exchange technology (EDI), and conduct real-time tracking, effective control and whole-process management of all aspects of logistics. This can not only form an interdependent market relationship, but also greatly reduce transaction costs.

We should attach great importance to the cultivation of logistics talents.

In the final analysis, the competition of enterprises is the competition of talents. The gap between us and the developed countries in logistics is not only the gap in equipment, technology and capital, but also the gap in concepts and knowledge and the gap in personnel. Only by constantly improving the quality of logistics practitioners and constantly learning and applying advanced technologies and methods can we build a logistics industry suitable for China's national conditions. To solve the shortage of specialized logistics talents at present, a better way is to strengthen the cooperation between logistics enterprises and logistics research institutes, combine theoretical research with practical application, speed up the cultivation of professional and technical talents and management talents, and create a large number of talents who are familiar with logistics operation rules and have pioneering and innovative spirit. Logistics enterprises should pay attention to the logistics knowledge and business training of all employees while training a few professionals and management talents, so as to improve the overall quality of enterprises.

Developing the third party logistics is a systematic project.

The development of third-party logistics is a systematic project, and it is far from enough to rely on the efforts of logistics enterprises themselves. We should vigorously publicize and advocate the role and function of third-party logistics in the emerging China logistics market, accumulate value and support its development with the innovative spirit of keeping pace with the times, correct some people's lack of confidence and distorted understanding of the position of third-party logistics in China logistics market, especially abandon the lack of modern logistics awareness and low-level shoddy business philosophy, and create conditions for the transformation of traditional logistics enterprises in China to modern logistics enterprises.

Here we also suggest that the development of the third-party logistics enterprises in China needs the government and industry associations to play their role in promoting and regulating, and create a good external environment for the development of the third-party logistics enterprises. First, establish and improve the corresponding policies and regulations system as soon as possible, especially speed up the formulation and implementation of policies, so that the development of third-party logistics can be based on laws and evidence; Second, establish standardized industry standards as soon as possible, implement industry self-discipline, standardize market behavior, and make logistics business operations have rules to follow; Third, give play to the functions of organization, coordination and planning, make unified planning and rational layout, establish a modern logistics center with multi-function, high level, strong distribution function and wide radiation range, overcome the disadvantages of compartmentalization, avoid redundant construction and waste of resources, and promote the healthy and orderly development of third-party logistics.