What are the advantages of third party logistics over traditional

Third-party logistics Third-party logistics is mainly distinguished from the supply side and demand side, it is a third party. Logistics does not sell specific products, does not produce specific products, and does not go to the procurement of specific raw materials, it is a service-oriented industry, to help enterprises transportation, warehousing, inventory control, inventory information processing. Third-party logistics is to help the supply side of the goods from the total supply of transportation to the point of demand for such a business. Third-party logistics is a specialized logistics organization that is highly economical. With the development of third-party logistics, its economy will be more fully realized. The economy of third party logistics mainly includes economy of scale and value innovation. Economy of scale is its basic characteristic, value innovation is its functional characteristics.

Third-party logistics enterprises have specialized logistics management personnel, advanced logistics facilities and equipment, with a high degree of systematization, integration and informationization of the management system, the rapid integration of logistics resources, with the basic characteristics of economies of scale. Mainly in the following aspects:

1. Self-operated logistics is difficult to achieve scale. Third-party logistics business to use specialized logistics facilities, rapid response information systems, generally require high fixed capital investment, fixed costs in the total cost of a large proportion. This situation determines that only with the expansion of scale, the average cost of logistics will show a downward trend, with economies of scale. From the requirements of market competition, third-party logistics also only have a certain scale, in order to ensure that the price is greater than its average cost, it may be profitable.

2. Third-party logistics to contract bundling to expand the scale. Third-party logistics and production, sales enterprise connection is through the contract or contract to establish a stable, clear relationship to realize. As the contract to the two sides of the cost, price fixation, risk averaging, the two sides actually formed a benefit **** the same body. This provides a guarantee for the normal development of logistics business from the interest mechanism. Third-party logistics enterprises to improve operational efficiency will accelerate the speed of logistics, reduce unit logistics costs, saving the two sides of the transaction costs; owners of enterprises to expand the scale, is conducive to improving market share, increase profits, but also expand the scale of demand for third-party logistics, it can be said that the scale of the two sides with the consistency of interests.

3. Third-party logistics enterprises through specialization to expand the scale. The so-called specialization refers to with the expansion of scale, the possibility of increasing the use of resources invested in specialization. When logistics activities are dispersed in different enterprises and different sectors, a variety of logistics elements is difficult to give full play to its proper role, for example, idle storage facilities. With the logistics activities from the production and circulation area in the division out, a variety of logistics elements have gradually become market resources, third-party logistics enterprises to use their professional advantages and the principle of system optimization, according to a variety of logistics activities in the whole society to carry out the overall optimization of the logistics elements of the optimal combination and rational allocation, and rapidly expand the scale of logistics, so that you can maximize the role of the various elements of logistics

In the case of logistics activities, it is possible to optimize the overall combination and rational allocation of various logistics elements in accordance with the requirements of society as a whole.

In China, the third-party logistics is still in the traditional logistics stage, so the transformation of traditional logistics is extremely important. Traditional logistics into a modern logistics requirements of third-party logistics there are obstacles: First, the concept of obstacles. First, the conceptual barriers. They do not know much about logistics theory and value-added services, and are satisfied with the provision of segmented functional services; second, the barriers of logistics information services. In the traditional logistics enterprises in the use of information management systems in the few, many enterprises within the information processing or manual operation, unable to provide value-added logistics information services; Third, specialized personnel and equipment barriers. There is a serious lack of personnel with specialized logistics knowledge, business management and marketing management, and the logistics facilities do not meet the service requirements. Therefore, traditional logistics to third-party logistics transformation must overcome these contradictions. First of all, according to the basic requirements of the third-party logistics, to formulate the corresponding strategy, under the guidance of the strategy, through the integration of internal resources operation, strengthen the internal training, and promote the formation of the concept of modern logistics; strengthen the investment in infrastructure, especially the construction of the information system, to create the conditions for the development of value-added services. Secondly, with the help of external resources, external forces to drive the transformation of traditional logistics to modern third-party logistics. Utilizing the existing conditions of engaging in the functional services of logistics in a certain segment, we will carry out logistics services in alliance with experienced and powerful third-party logistics enterprises. Through learning, improve the logistics integration ability, and constantly transcend to realize the transformation. Furthermore, according to the different stages of transformation, different internal barriers and different goals, respectively, to take internal independent transformation and external drive to realize the transformation of traditional logistics to third-party logistics.