Network Information Age Characteristics and Necessity of Third Party Logistics

TPL is a corresponding self-logistics logistics form, a social and professional features. Development of information technology is a necessary condition for the emergence of third-party logistics, information technology to achieve fast, accurate data transfer, improved warehouse management, handling and transportation, purchasing, ordering, shipping and distribution, order processing automation level, so ordering, packaging, storage, transport, distribution and processing integration; enterprise customers can more easily use information technology and third-party logistics companies communicate and collaborate; the same time, the rapid development of computer software makes the cost of logistics activities can be accurately calculated, computer software can effectively manage the flow of commerce logistics channels, which makes enterprises are likely to be completed within the original logistics operations by the logistics company to complete. TPL is the information age into the network (also known as e-commerce era) since the flow of the fastest growing sectors of industrial development is the main direction of development of the logistics industry.

According to the American Council of Logistics Management, and from 1999 to 2002 the average growth rate of third-party logistics in the United States is 20%. Overall, the total third-party logistics logistics expenditure is rising. In 2002, third-party logistics outsourcing in Europe and the overall logistics spending accounted for 51.0%, from 2005 to 2007 this proportion had reached 74.1%. Thus, third-party logistics markets in developed countries are experiencing a rapid growth process.

So far, China's third-party logistics companies have hundreds of thousands, but most companies are not strong sense of service, technological backwardness, lack of professionals, most of them can only provide simple transport and storage and other individual or section of logistics services , but can not provide logistics information, inventory management, and other value-added logistics solutions design services and complete logistics solutions, it has nationwide service network, able to provide the whole network services business less.
Overall, the main features of third-party logistics, including four points:
1. To provide a personalized service
And traditional logistics to provide standardized services, the third party logistics enterprises to provide personalized service. Third-party logistics business process services vary demand side, third-party logistics services in accordance with the requirements of business processes to customize. Third-party logistics business objective is to try to meet customer requirements. Third-party logistics companies can according to the customer's product requirements, transportation requirements, storage requirements, and packaging requirements for integrated, professional design, the process of re-integration of logistics services to help companies improve operational efficiency and customer satisfaction, while reducing operating costs . Third-party logistics companies are always trying to keep synchronized with customer demand, it also shows that the theory of logistics services from "selling products" to the development of the "marketing" stage.
It is a strategic alliance between the 2 companies
Today's complex market economy, more competitive, many companies through the establishment of alliances to gain competitive advantages, the development of third-party logistics is also true. On the one hand you want to be horizontal, ie with other third-party logistics enterprise alliance; on the other hand, the need for vertical alliances, namely with the owner of the enterprise alliance, the establishment of "complementary advantages, benefit-sharing" with its symbiotic relationship. Constitute an important factor in the ability of third-party logistics enterprise's core network is extensive. At present, most companies do not have this condition, which requires strategic alliances between different logistics companies, to their unique enterprise resource integration as a whole. This can not only achieve service integration, integration to enable enterprises to form large-scale operations, reduce operating costs, but also share each other's network, improve customer service capabilities, thereby enhancing the competitiveness of enterprises. Not just a one-time transportation or distribution services third-party logistics companies to provide customers, but having a long-term contractual nature of integrated logistics services, the ultimate function is to ensure the efficient operation of the customer system and the continuous optimization of logistics supply chain management. Compared with the traditional transportation companies, third-party logistics and pay more attention to the overall operational efficiency and effectiveness of customer logistics system. Its business is deeply touched to enterprise customers sales planning, inventory management, order planning, production planning and so the whole production process, far more than the business relationship with the client the general sense, but its combined into a coherent whole, the formation of a strategic partnership. In the long run, third-party logistics services will be further expanded, and even become part of the customer sales system. Its survival and development will closely linked with the fate of enterprise customers. Western theory of the firm places great emphasis on "interdependent" relationship, that is a rapid development of enterprises rely on their own resources, the strength is not enough, we must find a strategic partner, through the power of the alliance to gain a competitive advantage. The third-party logistics is playing the role of this alliance, and customers formed a symbiotic relationship is interdependent market. We can say that TPL is based on the establishment of a strategic point of view, from the outset committed to the integration of cooperation with customers. The emergence of third-party logistics companies are specialized logistics operation, such specialization operational needs of the enterprise to reduce operating costs as a starting point to form a strategic alliance for the end.
3. Third-party logistics is the customer's strategic investor, but also risk takers
Third-party logistics companies do not pursue short-term economic benefits, rather, it is an investment in the identity of customer service. For example, in order to meet customer needs, third-party logistics companies often own investment or joint venture dedicated to customers and building a modern warehouse, personalized information systems as well as special transportation equipment, such investments ranging from a few million dollars to more than a billion dollars directly to customers save a lot of construction costs, and the risk of this investment is bound to bear by itself. Therefore, third-party logistics service itself is a long-term investment. Benefits of this investment depends largely on the growth of customer traffic, which formed the basis for the integration of both sides benefit. Meanwhile, with the development of China's capital market, corporate enterprises as a strategic investor has become an important capital market investors, tightness create the conditions for third party logistics enterprise customers and the capital markets business relations can Both sides anticipate the integration in the equity capital will be more closely, the nature of the third party logistics strategic investors will become more apparent.
4. The interest is profit basis integration of third-party logistics companies
TPL source of profits and interests of its clients is consistent, not contradictory. TPL source of profit is not the freight, warehousing costs and other direct revenue, but the new value with customers in the field of logistics creation. Essentially, profits derived from the new third party logistics enterprise value of modern logistics management science promotion generated, that is, we often referred to "the third profit source." In the United States, in 1980 the total cost of the US business inventories accounted for 29% GNP, with the logistics management of the implementation of zero inventory control, to 1992 this proportion dropped to 19%. We can say that the new value of this inventory cost savings is the logistics scientific creation. This new value shared by third-party logistics companies and customers, which is the integration of the interests that we emphasize "win-win." Third-party logistics enterprise logistics cost savings to customers, the more its profit margin is higher. Although our existing logistics enterprises have not from the traditional to freight, warehousing costs of settlement of measurement, but many new third-party logistics companies have clearly stated that "in order to reduce customer operating costs as a fundamental business objective," which represents the China Logistics the development direction of the industry, but also the logistics enterprises to achieve integration and the interests of customers and realize the economic foundation for strategic cooperation.

As a new business approach, third-party logistics in Western countries has been developing rapidly. Over the past decade, the United States the use of third-party logistics to create a new market, reversing the severe recession situation. TPL become a source with the United States as the representative of the economic power of the Western countries. From a macro, the development of third-party logistics has its inevitability:
1. The third-party logistics help to avoid duplication
By logistics interests as "the third profit source" driven, companies have to adjust the strategy, a lot of time to set up a new logistics enterprises, redundant construction serious. 2001 was the peak of the third party logistics enterprises established. Shanghai logistics company only a month to add more than 130, more than 120 logistics enterprises newly registered in Beijing, and 60 more than doubled compared to the end of 2000. According to China's accession to WTO commitments related provisions, three years after joining the WTO multinational logistics company will enter the Chinese market. To be still in its infancy in the expansion of the transitional period of China's logistics industry, logistics companies need to integrate a large number of restructuring and effective integration from third-party logistics. Therefore, to accelerate the development of China's third-party logistics imminent.
2. Third-party logistics is conducive to industrial restructuring
Under the new international and domestic market environment, after 20 years of rapid growth of the Chinese economy is facing structural surplus product problems. Due to lack of effective market demand, a large number of products unmarketable, idle capacity, a lot of industry is decentralized and blind state of excessive competition. In this situation, there is a need for industrial restructuring. Through the development of third-party logistics, we can change the past because of the dispersion in circulation blind competition exacerbated between enterprises, and for Chinese enterprises to carry out large-scale industrial integration to provide a reasonable, low-cost flow protection. The reason is simple, there is no large circulation would be no big industry, no major logistics will be no circulation. Therefore, efforts to develop third-party logistics as the main logistics industry, vital to the smooth progress of China's industrial structure adjustment.
3. Development of Third Party Logistics comply with the development trend of the international logistics industry
Not only conducive to the development of third-party logistics enterprises to concentrate on the development of the main industry, but also help ease the city's traffic congestion, energy conservation, environmental protection. Sustainable development is becoming the mainstream of global development today, the third party logistics will undoubtedly become the first choice for the development of the logistics industry. The global trend of economic integration to a third party logistics broad development and operation of space. With the acceleration of scientific and technological change and economic development, the global information network and global market gradually formed, competitive region by the Regional Steering gradually globe. Economic globalization, the integration of the development trend of international competition makes localization, internationalization of the domestic market growing tendency to adapt to market competition, modern companies are increasingly concerned about their own core competitiveness, greater use of "outsourcing "strategy. Meanwhile, the investment risk enterprise self-logistics is too large, it is better to trust in the form of the logistics management, by a third party logistics enterprises conduct operations in place of its logistics system design and system of responsibility. Companies can rely on their professional logistics management knowledge and technology, optimize the allocation of resources, thus reducing logistics costs and inventory costs, improve inventory turns and capital return rate, so that the logistics really become "the third profit source."
4. With the formation of the rapid development of economic globalization and emerging markets
Companies will have to adopt a global strategy to look for market production resources and products with the development of international trade, international traffic will increase significantly, rely on their own strength is difficult to independently complete all logistics activities, even conditionally, also It would be uneconomical. Therefore, more and more companies tend to externalize internal logistics operations, which will undoubtedly give the third party logistics enterprises to provide a broad space for development, more and more traditional material circulation enterprises transition to the third-party logistics providers, promote third-party logistics industry development