80% of the logistics enterprises are unable to timely respond to changes in customer demand



Third party logistics company chose to logistics outsourcing, it is to their comparative advantage is not good or not some or all of the logistics business by way of contract entrusted to a professional third party logistics operations.The respected third-party logistics companies to find the concept is, if the existence of the business value chain of a link not the best, if that is not what the company's core competitive advantage, if such activities not go so far separated from enterprises and customers, then the business should be the business to the world's best professional company to do it.However, according to Brocade information "logistics industry restructuring and revitalization plan," market effects research report shows that 80% of the logistics enterprises are unable to timely respond to changes in customer demand.

Thriving third-party logistics in foreign countries

As the emerging field of logistics, third party logistics logistics market in foreign countries has been a considerable amount of occupied Europe currently use third-party logistics service ratio is about 76%, about 58% of the United States, Japan, about 80%;At the same time, Europe 24%, 33% of non-American third party logistics service users have to actively consider the use of third party logistics; Europe 62%, 72% of the U.S. third party logistics service users that they are likely to increase again in the next few yearsthird-party logistics services.American IDC to conduct a supply chain and logistics management services research showed that: a global logistics outsourcing to an average annual increase of 17%.In the U.S., conducting business through the restructuring of third party logistics, logistics cost in 1980 accounting for 17.2% of GDP dropped to 10.5% in 1997, to 7.5% in 2004.Practice shows that the operating costs of third-party logistics services and efficiency, far better than business self-logistics.It can help companies crack the main industry, reduce inventory, reduce costs and improve core business competitiveness.Thus, as a latecomer logistics industry and the logistics market power, should establish new concepts, based on the starting point, strive to achieve leap-forward development of China's logistics industry.

Kang Shen, chairman of Brocade IT, said: "Third Party Logistics in the most important reason is to make more professional logistics company to service for value-added logistics has become another channel."

Third Party Logistics Development in China

According to the Chinese Brocade IT Logistics Supply Chain Research Center survey, the supply capacity of existing logistics logistics slightly larger than our current level of demand.

The survey also showed that after several years of development, China's 3PL has made considerable progress.Scale logistics enterprises can be measured through various indicators, the simplest is through logistics enterprises to compare the number of personnel.3PL enterprises in China from 2000 the average number of employees rose to 248 395 in 2008, has grown an average of 147 enterprises.Recognition of the extent of 3PL 3PL embodied in the use of proportion.Will be entrusted to the 3PL logistics service all industrial enterprises increased from 16% in 2000 to 37% in 2008, an increase of 21 percent.The number of 3PL enterprises in China are increasing every year.Well-known foreign investment into China 3PL have UPS, DHL and so on.The number of domestic supplies, business storage companies have pledged to fully enter the logistics industry.

But the survey also showed that 40% of the enterprises are not satisfied for the third-party logistics show.Study the reasons for its dissatisfaction, 80% third-party logistics can not be attributed to the changing needs of business customers for a quick and timely response.

Multiple factors have led 3PL not been able to respond quickly

April 2009 to July, the Brocade IT Logistics Supply Chain Research Center, researchers visited the field Jiangsu, Zhejiang and three 100 third-party logistics companies.After investigation and research, found that four factors can cause third-party logistics timely response to customer demand changes.

A small scale, weak, and service failure.In addition to new foreign and private enterprises, most of the serious fragmentation third-party logistics companies, enterprises lack of integration and intensive management of obvious advantages, economies of scale difficult to achieve, can only provide individual or section of the logistics services.Logistics functions mainly stay in the storage, transport and urban distribution, and related packaging, processing, distribution and other value-added services much, can not form a complete logistics supply chain.

Second, poor logistics channels.On the one hand, business networks unreasonable, some non-network, third party logistics enterprises, lack of cooperation between businesses and their customers.On the other hand, information technology behind the Internet, bar codes, EDI and other information technology not widely used, logistics companies and customers can not fully share information resources, not to form interdependent partnership.

Third, lack of personnel, facilities, backward, low management level.According to the survey, the third party logistics companies have bachelor degree or above average, 34% talent, Master or above 15.2%.Shortage of talent, the quality is not high.At the same time, logistics equipment behind, the aging degree of mechanization is not high enough to meet specific customer requirements.

Fourth, the system is not perfect.Third-party logistics market order is still not standardized, industry and moral is low, people's fair competition, a weak awareness of fair trade.Other corporate finance system, property system, property rights transfer system, market access exit system, the social security system can not meet the requirements of business, limiting the third party logistics rapid and timely response.

Enhance the level of imminent third-party logistics

Third-party logistics market scale of China 60 billion yuan to 700 yuan, not only small, and highly dispersed in the 10,000 to 15,000 third-party logistics companies, no one company can account for more than 2% market share, largeMost logistics companies in the supply chain function is limited to a small part, unable to meet customer demand for integrated logistics services.In recent years, China's third-party logistics market to 16% annual growth rate of 25%.Although China's logistics industry has developed rapidly, but the overall level of third-party logistics in China is still relatively low.

Kang Shen, chairman of Brocade IT pointed out that since most of the logistics business is the storage industry from the original transition from the formation of large none of the core competitiveness of enterprises in technological level and management level is not high, lack of development potential.Means to improve the use of third party logistics information quickly and timely response to customer demand changes in the ability to enhance core competitiveness, is that many third-party logistics companies to respond to market competition, the inevitable choice.

Shen Hong also pointed out: information should not be part of a supply chain for information technology, and information technology should be achieved through supply chain integration.Information supply chain integration is to implement a clear-cut idea of supply chain integration.Through "operation level", "decision makers" and "supply chain e-layer" structure, a clear framework for third-party logistics resources to provide an integrated focus on the comprehensive information technology solutions.Top to bottom in order to solve the third-party logistics timely response to customer demand can not change flawed, and not every shoe itching.