Logistics case study: Haier into the logistics industry thinking and analysis

Nowadays, "logistics" has become a more fashionable term in society, often mentioned by people, especially in China's highly competitive home appliance industry, but also put the logistics into the important position of enterprise development. Many home appliance manufacturers actively enhance their logistics capabilities, and as an effective way to enhance market competitiveness. Some companies have set up logistics subsidiaries or specialized logistics business units to strengthen their logistics strength, to adapt to the increasingly diversified and personalized market demand, thereby reducing the cost of logistics operations, improve the quality of logistics services, and create conditions for the further development of enterprises. Haier, as an influential home appliance manufacturer in China and even in the world, is no exception. Haier from 1999 to vigorously develop their own logistics capabilities, the establishment of a specialized logistics promotion headquarters, in just a few years time has achieved remarkable results, but also played the Haier logistics this gold standard, created a reputation in China's logistics field set up the Haier logistics banner, the development of enterprises has played a positive role.

The main factor of competition among enterprises in the 1960s was cost, and the main factor of competition in the 1970s was quality, and the main factor of competition in the 1980s was time. The factors mentioned here mainly refer to the delivery time and response time. Users not only require the majority of manufacturers to deliver on time, but also require a shorter and shorter delivery period, which puts forward more and more high requirements for manufacturing enterprises. Generally speaking, the logistics business of manufacturing enterprises either do it themselves, or let their partners - professional third-party logistics company to do logistics business.

Although Haier in the "three transfers" in the idea of "transfer from manufacturing to services" industrial direction, but, Haier is still a manufacturing enterprise, therefore, Haier can not be like some foreign multinational corporations, the production and distribution of all outsourcing. Therefore, Haier cannot outsource its production and distribution as some foreign multinational companies do. If Haier will also outsource part of its own production, then, Haier will be able to save a lot of investment in logistics, such as Haier in order to the smooth operation of its logistics system for the smooth operation of the establishment of warehouses, three-dimensional warehouses and various logistics facilities, as well as in order to the efficiency of the company's logistics network and the construction of a modern logistics information platform, and in the usual actual operations also need to invest a lot of manpower, material resources, Financial resources, this investment is quite huge. So, why doesn't Haier cooperate with professional logistics companies as manufacturers in developed countries do, and let logistics companies take up the logistics business in cooperation? Overall there are mainly the following reasons:

1, China's third-party logistics is not yet mature.

Both third-party logistics, or fourth-party logistics, the development of China still needs time. China's logistics is hot in recent years, logistics is emphasized by the community and increase investment in this area of time is not long, but also unable to form a complete service system. And Haier such a strategic approach to international business as a large enterprise, there is no time and may not sit and wait for the development of third-party logistics before the logistics business, so do their own logistics has become a necessity, or out of necessity.

2, logistics outsourcing a degree of the problem.

Whether it is traditional logistics, or modern supply chain conditions of systematic logistics operations, logistics outsourcing is always a limit, can not think of logistics outsourcing omnipotent, it always has to be able to outsource the part and can not be outsourced to others to do the part. If logistics extends infinitely, it will involve the commercial secrets of the enterprise, for example, from the procurement plan, we can learn the production and operation plan of the enterprise, new product development and other commercial secrets. Especially in China's current credit system is not very sound situation, the production and operation of the enterprise's commercial confidential information can not be easily told to its partners, which is related to the survival of the enterprise. Haier's logistics is to start from the source, from procurement, therefore, for commercial considerations, Haier's own logistics is not to be faulted.

3, Haier's requirements for logistics services can not be completed by the company.

External logistics can be outsourced, but the internal logistics can be outsourced? Obviously, under the current conditions is unrealistic, first of all, there is no enterprise has the ability to do logistics for Haier. Take international procurement for the international market as an example, due to foreign trade and foreign exchange system, the intermediate links are bound to produce tariffs, which will take up more funds and increase costs. Even if not, domestic suppliers can independently complete the international procurement and logistics, and can be traded on the Internet enterprises are few and far between. Reasonably speaking, as a manufacturing enterprise, Haier should outsource its logistics business to a third-party logistics enterprise, and implement professional cooperation and professional operation. However, in fact, it is likely that no enterprise can or is willing to undertake the logistics required by Haier. Why? Take a look at Haier has built logistics facilities, alone its sole investment in automated three-dimensional library is unique in the country, there is no domestic enterprises in accordance with Haier's standards for Haier to do logistics services.

4, Haier's own development of logistics needs.

China's large enterprises and localized in China's foreign enterprises are different, enterprises from developed countries have logistics talent and experience, some domestic logistics enterprises are also in the foreign large multinational companies under the professor to develop (such as the treasure supply logistics). Domestic enterprises, including Haier, have no logistics talents and experience before developing logistics. If Haier does not do logistics itself, then Haier's logistics will remain on the concept as many Chinese enterprises do, and it will not cultivate talents and accumulate experience, and it will not be able to talk about internal or external logistics. Purchase of logistics as a product, service or solution and other things are not different, the enterprise as a buyer or user must first really understand the logistics, if Haier's logistics only stays in the leadership of the enterprise's verbal, written, then, that is, other enterprises in the community can provide logistics services, Haier has no ability to buy and enjoy.

Now, the consumer demand in the market to personalization, diversification direction, in order to adapt to this consumer tendency, the enterprise to establish a rapid flexible production mode is very important, with the corresponding timely supply of raw materials, finished products in a timely manner to consumers and so on the efficiency of the logistics operation activities, it has become a very important part of the relationship between the fate of the enterprise. In order to adapt to this shift in consumer demand, Haier has been carrying out enterprise process re-engineering, to put the entire enterprise network in the service industry to deal with the perspective of the business, to organize the enterprise's production and operation activities, all based on the order, according to the order for production. If Haier in its expanding scale, but also adhere to the previous logistics operations, not to the modern concept of logistics to establish the Haier logistics system, and on this basis, the integration of enterprises and even the community's logistics resources, will inevitably affect the efficiency of its logistics operations, and ultimately affect the development of its.

So, Haier do their own logistics will be successful? Of course, we can not give this issue under a permanent conclusion, which is based on the actual operation of Haier Logistics in the contribution to the enterprise to judge, the test of time is the ultimate standard. But in Haier to strengthen the enterprise logistics operations after the effect of the view is successful, has produced positive effects. Just in terms of procurement, before the integration, each business unit did its own procurement, but after the establishment of the logistics department, the group unified procurement was implemented, and the direct effect was to reduce the group's external procurement costs, and the indirect effect was to improve the overall quality of parts and components and reduce the inventory through merit-based procurement. Among them, the storage area of the parts warehouse has been reduced by 320,000 square meters, equivalent to the area of 43 soccer fields, and the annual reduction of warehouse rental costs is more than 52 million yuan. At the same time, the number of raw material suppliers of the enterprise has been reduced from more than 2,200 in 1998 to less than 900 in 1999, and the proportion of internationalized suppliers is 71.3%, among which more than 50 suppliers are the world's top 500 enterprises. At the same time, the turnover of the Group's current assets accelerated to 118 days in 1999, 91 days in 2000, and 79 days in 2001, with obvious results.

Haier do logistics has all aspects of the reasons, as mentioned above, the external environment to provide Haier can not be utilized logistics resources at once to meet the requirements of Haier, but at the same time, there are many other factors affecting the Haier decision-making on this issue. Here, let's do a SWOT analysis of Haier to see how Haier is developing in the logistics field.

SWOT analysis of Haier's entry into the logistics industry

Advantages:

1, Haier's brand effect

2, the country has a more complete network

3, Haier logistics business scale

4, strong financial strength

5, the scale of advantages of the reduction of costs

6, the successful operation of the management of the enterprise

7, the cost of the logistics industry, and the development of the logistics industry.

6, the successful operation of the management experience

Disadvantage:

1, into a completely new industry, the initial investment is huge

2, the company's old operating procedures are not conducive to the operation of the logistics business under the new situation

Opportunity:

1, China's logistics industry is still immature, the development of a huge space, it is easy to form the company's new profits Growth point

2, in the case of the gradual recovery of commercial capital, mastering the circulation becomes the key to control the market

3, logistics to strengthen Haier's brand, better able to strengthen the competitiveness of the enterprise in the field of home appliances and the position

4, to the company's internationalization strategy as the goal of the development of logistics for the implementation of the company's further strategy to create conditions

5, The relevant units of the state's strong support and policy preferential opportunities:

6, China's logistics industry is still immature, the development of a huge space, easy to form a new profit growth point

7, in the gradual recovery of commercial capital, mastery of the circulation has become the key to corporate control of the market

8, to strengthen the Haier brand of logistics, and strengthen the competitiveness and position of the company in the field of home appliances

9, the logistics of Haier's brand, and strengthen the company's competitiveness and position in the field of home appliances

10 Competitiveness and status in the field of home appliances

9, the company's internationalization strategy as the goal of logistics development, to create conditions for the implementation of the enterprise's further strategy of the relevant units of the state's strong support and policy concessions

10, relying on the favourable conditions of large and well-known enterprises, and actively introduce professional logistics personnel, give them full space to perform, and accelerate the development of enterprise logistics

12, The establishment of a specialized logistics department or the establishment of Haier logistics subsidiary, the implementation of logistics operations, the establishment of a perfect company system, to promote the maturity of the logistics business as soon as possible

Threats:

1, foreign home appliance manufacturers to enter the Chinese market at the same time to bring the corresponding maturity of the logistics service, Haier has just entered the field of difficulties

2, home appliance industry, the growing competition, the entry into logistics will inevitably make the enterprise battlefield. Entering the logistics is bound to lengthen the corporate front, affecting Haier's investment in the field of home appliances

3, with the relevant foreign logistics companies, and actively cultivate their own logistics characteristics, with a high starting point, strict requirements to establish their own brand

4, first of all, we must do a good job of positioning their own logistics business to avoid the dispersal of too much strength, the breakthroughs in the logistics business focus on the focus of training

From the above analysis, it can be seen that the logistics industry has become more and more competitive in China. p>From the above analysis, it can be seen, enter the logistics industry has become Haier further development and effectively expand the international market, enhance the competitiveness of enterprises in the market an effective way. In the face of the home appliance market manufacturers crazy price cuts, home appliance manufacturers profit margins have been about to fall to the extreme, enterprises want to develop, there must be ways to increase profits and ways to find new economic growth points. Enterprises want to increase profitability, is nothing more than an increase in sales, that is to say, earn a little more; either is to reduce expenditure, that is, save a little, reduce costs. In a situation of fierce competition, it is not easy to make a significant increase in sales, and the related expenses will also increase a lot more than the initial period, which is also known as the law of diminishing marginal effect. In the long run, as the Chinese market matures, marketing strategies such as advertising and price wars will gradually become a fairy tale, and the cost of business operations will become the focus of competition. And the cost is entirely internal affairs of the enterprise itself, its source and provenance is relatively clear, can be controlled; but sales are faced with uncertainty of the market terminal, this link enterprise is unable to control, so relatively speaking to reduce the cost of some of the easier, become the preferred choice of enterprises. Therefore, attention to logistics, logistics has become a necessity.

China's society is in the direction of the market economy development and improvement of the stage, the long-standing planned economy caused by the imprint can not be erased at once. Traditionally, China is a heavy production, light circulation of the country, in a long period of time, China is in a seller's market, only in recent years from the seller's market to the buyer's market, but the center of gravity of the whole society is still in the field of production. Neglect of the circulation of China's logistics costs remain high, and enterprises in the gradual recognition of this problem, it is necessary to increase their own investment in this area, first of all, from their own, since the recognition of such a problem, we must strive to improve it, so that the operation of the enterprise to achieve rationalization.

In short, Haier strides into the logistics industry, and do quite well, thanks to the national logistics development boom. In the country to vigorously promote the development of logistics environment, Haier Logistics to follow the pulse of the times, came into being. Any enterprise is for a certain business objectives and constantly adjust their business approach and strategy, Haier logistics industry is also out of the enterprise's own needs. Doing a good job in logistics, making Haier more expand the scope of business, and enterprises involved in various fields of mutual support, become an interlinked whole, to promote the overall development of the whole group. We have reason to believe that Haier home appliances tomorrow will be better, the development of Haier logistics will be faster, to become a representative of China's logistics enterprises, and further promote the implementation of Haier's internationalization strategy, to become the world, into the world's top 500.