What traditional logistics is really like

"Logistics" is literally the flow of material entities. But when the flow of this material entity, as a movement process to grasp, logistics has become including transportation, storage, handling, sorting, packaging, processing and other activities. This is often referred to as traditional logistics (Physical Distribution) or logistics in general.

Traditional logistics generally refers to the packaging, transportation, loading and unloading, warehousing, and modern logistics put forward the concept of logistics systematization or called total logistics, integrated logistics management, and put into practice. Specifically, it is to make logistics to both ends of the extension and add new connotations, so that the social logistics and enterprise logistics organically combined together, starting from the procurement logistics, through the production logistics, and then into the sales logistics, at the same time, through packaging, transportation, warehousing, loading and unloading, processing and distribution to reach the user (consumer) hands, and finally there is the recycling logistics. In this way, modern logistics contains a product from "life" to "death" of the entire physical circulation of the whole process.

[edit]Traditional logistics and modern logistics

The difference between traditional logistics and modern logistics is mainly manifested in the following aspects:

1, traditional logistics only provides simple displacement, modern logistics provides value-added services;

2, traditional logistics is a passive service, modern logistics is an active service;

3, the implementation of traditional logistics, manual control, modern logistics information management.

3, traditional logistics manual control, modern logistics implementation of information management;

4, traditional logistics without uniform service standards, modern logistics implementation of standardized services;

5, traditional logistics focus on point-to-point or line-to-line services, modern logistics to build a global service network;

6, traditional logistics is a single link of the management of the modern logistics is the overall system optimization.

Lean logistics: Lean thinking refers to the use of a variety of modern management methods and tools, based on social needs, to give full play to the role of people as the fundamental, effective configuration and rational use of enterprise resources, maximize the economic benefits for enterprises to seek a new type of business management concept. Lean logistics is the application of lean thinking in logistics management.

[Edit]Traditional logistics to modern logistics transformation tendency

2003 is China's accession to the WTO in the second year, the service industry has been open to the outside world in the relevant areas, some will soon be opened up, more multinational enterprises will enter China to participate in the market competition; 2003 is China's logistics industry continues to transform the traditional logistics to modern logistics in one year, the logistics market will be some new changes and tendencies. The logistics market will see some new changes and trends.

Specialization tendency. China's accession to the WTO after the market competition further intensified, will certainly prompt enterprises to pay more attention to its core resources and core competitiveness of the cultivation of the enterprise's internal logistics to professional logistics companies. However, the current market share of China's third-party logistics is not large, according to the China Federation of Logistics and Purchasing and the United States of America, a joint survey of management consultants, the use of third-party logistics in the surveyed enterprises accounted for only 22.2% of the United States of America these types of enterprises to use third-party logistics accounted for 58%. Therefore, China's third-party logistics has great potential to be developed.

Scale, group tendency. Some logistics companies in developed countries through reorganization, capital expansion, mergers, process re-engineering and other forms, has formed a multinational integrated logistics enterprises. These logistics companies, with strong capital, advanced technology and equipment, advanced management concepts and experience, global service network. Most of the logistics enterprises in China are small in scale, weak in strength and low in capacity, and are in an unfavorable position in the market competition with large international logistics companies. Therefore, domestic small and medium-sized logistics enterprises, some of which will take advantage of the domestic network and facilities, low human capital costs and other local advantages, and domestic and foreign large-scale logistics enterprises to establish strategic partnerships; part of the possible acquisition by large logistics companies, mergers; there will be a strategic reorganization and transformation to the development of integrated logistics, for large multinational logistics enterprises to support an important part of the supply chain. The company will also be strategically reorganized and transformed to develop integrated logistics to support large multinational logistics enterprises and become an important part of the supply chain.

Diversification tendency. With the deepening of China's reform and opening up, as well as China's accession to the WTO in the distribution of goods, road transport, rail transportation, warehousing, freight forwarding, postal services and other areas of the gradual opening up of the market will be a diversified situation. Firstly, foreign-funded logistics enterprises, which mainly serve foreign-funded enterprises and engage in logistics activities of multinational corporations in China in terms of production, sales and procurement. Second, private logistics enterprises characterized by diversified equity structure, which is the most dynamic force in the logistics market at present. Third, the state-owned economy in the traditional transportation, freight forwarding, warehousing, wholesale enterprises, is still the main force in the logistics market. 2003 and a considerable period of time in the future, China's logistics market will show a state-owned, collective, individual, Chinese, foreign and other ownership of logistics enterprises interdependent on each other, the same stage of competition, and promote each other's situation.

Internationalization tendency. As the world's manufacturing and OEM center in the transfer to our country, as well as the acceleration of the process of economic integration, the future of China and the world's materials, raw materials, parts and components and manufactured goods import and export transport, both in terms of quantity and quality will undergo major changes. In order to adapt to this change, China must be in the logistics technology, equipment, standards, management, human resources and the world docking. Therefore, China's logistics industry in the internationalization will develop faster.

The traditional transportation and warehousing enterprises to accelerate the transformation of third-party logistics. As foreign logistics enterprises have come to China, especially in Hong Kong, Taiwan, small and medium-sized logistics enterprises to enter the mainland logistics market speed up, to the domestic traditional transportation and warehousing enterprises to cause great pressure. Therefore, in 2003, there will be more traditional transportation and warehousing enterprises to accelerate the transformation of third-party logistics, the use of their own advantages, expanding the customer base, enhance market competitiveness, and foreign and overseas logistics companies to cooperate or compete.

Logistics distribution will remain a hot spot. First, logistics and distribution by the government attaches great importance. Since the mid-to-late 1980s, government departments at all levels have taken measures to actively promote the development of logistics and distribution, and in recent years more attention has been paid to the development of logistics and distribution. Secondly, with the development of chain management, the requirements of distribution of rapid response, on-time delivery, and promote the development of logistics and distribution. 2003, such as Moore, a new business model is emerging, with its supporting services, logistics and distribution will also have new developments and changes. Third, in previous years, such as Haier's large-scale production enterprises involved in modern logistics, new and renovated a number of logistics and distribution centers, the momentum will continue. Fourth, some large foreign and domestic logistics enterprises, are planning to establish their own distribution centers to improve the enterprise's logistics capabilities.

Logistics demand will first be released from some industries. At present, China's logistics market supply is far greater than demand, but this situation with the growth of demand for logistics services in some industries, other industries play a demonstration role, and will gradually be improved. In the production and circulation areas, the first logistics have a greater demand for pharmaceuticals, tobacco, home appliances, clothing, automobiles, chemicals, beverages and other industries. Logistics demand in addition to self-built, jointly built logistics companies to release the future will be more to the release of professional logistics companies, especially wholly foreign-owned and Sino-foreign joint ventures, will be the first to release the demand for logistics. According to the relevant media hosted by the multinational corporations logistics service demand survey report statistics, the proportion of multinational corporations in China logistics outsourcing up to about 90%.

Logistics services more in-depth. After WTO accession, more foreign enterprises to enter China, China and the world economy is more and more closely linked, while the logistics market competition will be more intense. The future market competition, will be mainly service level and quality of competition. Simple transportation, warehousing services will gradually turn to full service, the object of the service will be subdivided, extended services are favored.

The pace of logistics information technology construction. Modern logistics is supported by information technology, no information technology without the development of modern logistics. In China's vigorous development of information technology under the new situation, the informationization of logistics should walk in front of other industries. 2003, the informationization of the logistics industry is still mainly laying the foundation, but at the same time there will be new changes and progress: China Federation of Logistics and Purchasing will study the establishment of logistics and purchasing industry statistics and information system; a number of logistics software development enterprise's products after a few years of testing, experimentation, and will be entered into the logistics application stage. .