Recent Trend in Logistics
物流的新趋势
Contents
1 Third-party logistics
2 Outsourcing
3 Benchmarking
4 Virtual warehousing
Third-party logistics
Categories of TPL
Standard 3PL provider Service developer The customer adapter The customer developer
Reasons for using third-party logistics
To reduce operating costs of manufacturers To strengthen core competency Resources are limited There is insufficient time to develop the
required logistics capabilities in-house
Reasons for using third-party logistics
The company is venturing into a new business with totally different logistics requirement
Merger or acquisition may make outsourcing logistics operations more attractive than to integrate logistics operation.
Advantages of TPL
Improve global capability Reduce cost Achieve environment objectives Enhance security Improve quality Speed process change
TPL in China
The development level of TPL in a nation may reflect the overall level of its logistics industry.
In the U.S., the companies using TPL services completely account for 77%; in Europe, 79%; in Japan about 80%. But in China, the percentage of using 3PL is lower. There is a great potential for TPL’s development in China.
Raw Materials Logistics Operation
Finished Goods Logistics Operation to Industrial Goods
Commercial Goods Logistics Operation
Case Study — China Container Shipping Corporation provides TPL services for ABC foreign company
Using TPL service
Group Discussion
How about Haier Groups?
1. Background of Haier
2. Advantages and disadvantages of logistics operations in house by the Haier groups
3. How about the orientation of logistics of Haier Groups?
Outsourcing
Definition Difference between TPL and Outsourcing Traditional logistics and contract logistics
Differences between traditional and Contract logistics
Traditional Services Contract Services
Not tailored Tailored
Usually one-dimensional or warehousing for example
Are multi-dimensional, linking transportation, warehousing, inventory management, systems and others
Shippers aim to lower transportation cost
Goal is to lower total cost while providing better service and more flexibility
Contracts tend to be temporary Contracts are more likely to be of longer duration
Require expertise in, say, transportation Requires broad broad logistics and analytical skills
Contracts generally takes less time to negotiate
Contracts generally take more time to negotiate
Simpler arrangement and relatively low switching costs
Complexity of arrangement leads to higher switching costs
Benchmarking
What is benchmarking What’s the use of benchmarking Recent research findings
What is benchmarking
Benchmarking refers to the act of comparing a company with world-class performers and competitors involved in similar functions and operations.
A conceptual framework for benchmarking
What’s the use of benchmarking
Benchmarking helps an organization to identify and learn the best practices in the world for process or a function
Benchmarking helps evaluate a firm’s strategies, operating plans and processes.
Recent research findings
Effective benchmarking is highly dependent on the general competitive attitude of a firm’s managers.
Firms that benchmark have a realistic view of their own capabilities. In other words, for many firms, “ignorance” ( 盲目乐观 ) and can possibly lead to complacency.(自满 )
Overall, the interview findings suggested that carefully managed benchmarking programs help firms improve their logistical performance.
Reverse Logistics
Definition Logistics and environment
1.Definition
Logistics include three dimensions: Material management covers all the functions from raw material
acquisition to production at plans; Distribution covers movement from plant to customers;
Forward logistics Reverse logistics deals with the handling, storage and movement of
materials that flows from the end customer back to the seller or supplier.
Materials: (1) returns, defectives; (2) recyclable waste: containers, boxes, packaging material; (3) non-recyclable waste: hazardous, toxic…
2. Reverse logistics and environment
The logistics industry is still not very “green”:pollution, congestion, resource depletion, etc.
Reverse logistics is a necessity for a firm’s operation and customer service policy. But few firms really think they should operate logistics in such a way as being able to improve the environment.
The problem of the recycling of used electronic products in China.
Please comment on the current policy stipulating private cars purchase.
3. Design of reverse logistics Reverse logistics flow may be synchronized with the forward
distribution flow for maximum efficiency, i.e. a pick-up of returns or packaging materials from a store should be scheduled with the delivery of products to that store.
The locations for recycling centers or the selection of recycling centers may be based on proximity to end customers where returns or packing materials are generated.
The design of the supply chain must include considerations related to reverse logistics such as location of landfills, incinerators and recycling centers, transportation of returns or packing materials and the type of containers to store and move products.
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