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Driving factors for the development of third-party logistics

by:CNS     2021-07-11
Driving factors for the development of third-party logistics 2021-06-20 19:58:25 The driving factors for the development of third-party logistics can be examined through the following two aspects. 1. Motivation of demand for logistics services (1) Maintaining core competitiveness As cost savings, organizational flattening, global marketing and outsourcing strategies have received increasing attention, business operators have begun to consider abandoning some internal logistics functions and instead adopt third-party Logistics service providers establish logistics alliances or partnerships to realize the outsourcing of logistics activities. Many companies focus their resources and energy on their core business through reorganization and maintain their core competitive advantages, thereby reducing operating costs and promoting the rapid accumulation and growth of their own capabilities. (2) Reduce operating costs. An important factor in developing third-party logistics is to reduce investment in logistics facilities. Reducing operating costs and accelerating capital turnover are one of the main benefits of the first labor side logistics. Business managers are paying more and more attention to the contribution factors of assets to profits. The change in the concept of the Guangzhou-Guangxi freight dedicated line has finally led to the concentration of capital in the main business that can produce high benefits and achieve competitiveness, and thus will self-operate logistics Gradually turn to third-party logistics. This can not only reduce new investment in logistics facilities, but also greatly reduce the funds occupied on warehouses and fleets, and improve the efficiency of the use of funds. (3) Improving service levels, maintaining core competitiveness, reducing operating costs, and improving service levels are the biggest benefits for companies requiring third-party logistics services. In recent years, with the increasing expectations of customers for logistics services, the improvement of vehicle operation regulations, the rapid development of technology, and the increasing uncertainty of economic and environmental changes, people's demand for logistics management has expanded. Generally speaking, self-operated logistics often follow the experience and customary practices that have been obtained, and lack proactive innovation and service awareness to cater to customer needs. The third-party logistics can not only provide more professional logistics services, but also have high efficiency. In addition, acquiring more professional logistics knowledge, flexibility and benefits of information technology, the concept of zero inventory, the fragility of circulation channels and the shortening of product life cycles are also important reasons for the rapid development of third-party logistics. 2. Motivation for the supply of logistics services The road transportation industry has increasingly become an increasingly competitive industry, with declining capital returns and lower profit margins. This drives some road transportation companies to gradually transform to integrated logistics companies and provide carriers with value-added logistics services. Enter into market segments with high barriers to entry, and sign long-term logistics service contracts with customers to obtain new profit growth points. In the past 20 years, many transportation and warehousing companies in Europe and the United States have evolved into suppliers of extensive logistics services, customizing various new services for customers, and operating efficiency has also been greatly improved.
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