Transformation and Prospects Logistics Outsourcing

As market competition intensifies, further refine the social division of labor and the rapid development of the logistics industry, logistics outsourcing gradually recognized logistics service providers and the demand side, companies are looking for new ways to remain competitive, the focus of competition from price and external services the competition to internal cost control, especially control, logistics outsourcing is known as the third profit source logistics operating costs became dazzling competitive weapon. The so-called logistics outsourcing, refers to the production or sale of business (the demand side) to concentrate and enhance their core competitiveness, and its logistics business by way of contract entrusted to the professional logistics companies (ie, third party logistics) operations. Although the logistics outsourcing can improve the speed of the flow of goods, save storage costs and reduce the backlog of funds in transit, but for various reasons, logistics outsourcing situation still continues, what will be done to logistics outsourcing work?

Supply Chain Management

For concentrate on core competencies to build a consideration, many companies have chosen logistics outsourcing, but due to the current low level of logistics service providers of many services in our country, the limited range of services, many companies continue to always consider when choosing a new logistics providers Manufacturers, in this regard resulted in higher cost of change, it also affects the formation of mutual supply chain partnerships. Can greatly reduce inventory and transportation costs by strengthening the management of the entire supply chain, and improving the long-term competitiveness of enterprises has become a broad consensus. More and more enterprises will outsource non-core functions of logistics business to a professional logistics service provider, with the focus on the development of the core competitiveness of the business, focusing on building high-value production model, emphasizing speed, flexibility and innovation, so that enterprises operational management to world-class level.

Increase the intensity of the tracking service

At present, enterprises outsourced logistics services mainly for the traditional logistics services, mostly for short-term cooperation partnership, can not form a true partnership, to provide third-party logistics service tracking efforts to stay in the lower level. Logistics outsourcing market is flooded with a lot of disharmony, so to increase the intensity of the tracking service, it is understood, a Japanese optical products integrator in the process of cooperation with logistics providers, using a set of strict procedures to ensure that the tracking service outsourcing success implemented. Logistics in transport links, for example, this integration Chamber of Commerce regular supplier of vehicles to meet the rate, set cars meet the emergency rate, time rate, complaint rate, cargo damage rate, exception processing effect, tariffs adjusted with the city status make statistics. In business with suppliers held a regular meeting of each month, this company will be notified to the logistics providers of logistics business performance last month, next month to remind suppliers attention should improve the operation of the link. For damages caused by failure because the supplier, they will make a claim in accordance with the agreement. At the same time, whenever the business development or business plan changed, they will promptly explain to suppliers, logistics providers to make timely arrangements. Through regular meetings, vendor coordination and also the functioning of health services with the customer's suggestions for improvements. Through this information communication and feedback mechanisms, this company constantly improve their own operation, it is also to promote the continuous improvement of supplier services, improve service levels, and finally achieving a win-win situation of supply and demand sides.

Enhance third-party logistics service mode

All along, the logistics service market lack of uniform standards, the lack of consensus pricing, except for some mature companies, many logistics companies generally low level of information management, data processing capacity is weak, information transmission speed is slower. Currently services and logistics service providers offer many models of relatively simple, generally do not provide full control of one-stop service, so the logistics outsourcing is required to change the way the first third-party logistics service providers to actively enhance the capacity achieving operational efficiency, formation of planning and implementation capacity integrated solutions, in terms of service improvements to achieve standardization and customization services. At the same time, logistics service providers must change the past, a simple contractual logistics services, integrated supply chain management services developments. By extension services, to break the geographical restrictions, to cultivate new core competencies and establish strategic networks to realize the value of value-added logistics services.

Looking for outsourcing partners to understand their needs

Enterprises in the choice of logistics outsourcing is not blind to find, but to take appropriate outsourcing strategy, companies should analyze in depth the internal logistics status quo and explore the logistics are not the company's core capabilities to analyze whether the logistics can bring external strategic economic interests, a clear grasp of outsourcing preparatory work should be done in order to decide whether to implement outsourcing.

Choosing the right outsourcing partner is also very important, the potential for external logistics providers investigation, analysis, evaluation, survey logistics supplier management situation, strategic orientation, information technology support capabilities, its plasticity and compatibility, industry operating experience, etc. to evaluate the cost of logistics activities in health, long-term viability, credibility and so on. At the same time, strengthen the control over the activities of logistics outsourcing. Even with third-party logistics providers signed an agreement, we should also monitor the performance of third-party logistics providers, and to provide them with the required business information. Supply and demand mutual trust is the key factor to establish a good outsourcing partnership, any technology platform and irreplaceable.

Logistics Outsourcing value obtained in five areas

1. strengthen the core competitiveness of enterprises

The main purpose of outsourcing is to optimize the allocation of resources, pooling of resources and energy cultivating enterprise's core competence;

2. enterprises make full use of external resources

Enterprises through the short-board outsourcing can utilize external resources to make up for their lack of resources and capacity;


3. Reduce and control costs

By outsourcing business aspect of logistics cost savings, while reducing investment in logistics facilities;

4. The information sharing and risk sharing

Business through cooperation with third-party logistics providers, to achieve information sharing, risk sharing, and thus become more flexible, able to make quick response to market changes;

5. accelerate the pace of reconstruction to reduce systemic risk

After the logistics outsourcing, companies can speed up the reorganization of the internal organizational structure and optimize processes, improve management efficiency and reduce the risk of system changes in the external business environment.