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The Dilemma and Prospects of China's Logistics Development

2021-01-06Source:

  As a logistics expert, Wu Youxi is well-known in the industry for his good at large-scale multinational logistics enterprise management practices and solid economic theory knowledge. A few days ago, our reporter interviewed him on issues such as the development of China's logistics industry. The following is the main content of this interview.

  Q: After these years of development, what do you think of the development status of China's logistics industry so far?

   Answer: As we all know, the development of China's modern logistics industry should be traced back to the iconic 1999. The then Vice Premier of the State Council wrote to the China Logistics Conference, which opened the curtain for the development of China's modern logistics industry. After more than ten years of development, I think there are two prerequisites that cannot be ignored: first, China’s sustained and rapid economic growth and rapid development of import and export trade have laid the foundation for the development of the logistics industry; second, China’s accession from 1995 to 1996 The WTO has provided a broad platform for the internationalization and specialization of the logistics industry.

   China's logistics industry is a fast-growing industry, and its scale, speed, quality, and model have seen leap-forward growth, which has played an important role in supporting China's economy as the world's second largest economy. In addition, as an important part of the service industry, the logistics industry has also received great attention from the government and society. In recent years, the government has also included the logistics industry in the national industrial revitalization plan. Some economically developed regions in China have also adopted the logistics industry as a regional strategy or Key support for pillar industries has become a key measure to strengthen the location and radiation of the city, which is an important driving force for the development of the logistics industry.

   It is worth noting that there have always been hidden worries in the development of the logistics industry. The main problem is the low profit rate of logistics enterprises. This restricts the attractiveness of enterprises to outstanding social talents to a certain extent, and also affects the reproduction and investment capabilities of logistics enterprises. In recent years, the shortage of labor in the express delivery industry during festivals has resulted in the inability of timely delivery and arrival of goods; unreasonable collection of fees in road transportation; payment of land use taxes and other taxes and fees have restricted the increase of corporate profits.

   In addition, the number of logistics companies on the market is also small, and the ability to use social capital is also weak, which also has a significant impact on the rapid development of logistics companies.

Foreign trade, consumption, and investment are the troika of China’s economic development. However, the speed of foreign trade, consumption and private investment has dropped significantly, and the logistics industry has also been affected by this wave. 2012 will also be a year of slow development for logistics enterprises. Of course, it is also a year of corporate restructuring and self-adjustment.

  Q: You once went to the United States for training and often deal with American logistics companies at work. Can you briefly talk about the cooperation between American logistics companies and Chinese logistics companies?

   Answer: I once served as a director of a Sino-US joint venture, which was a joint venture between a large domestic logistics company and a well-known domestic logistics company in the United States. The reason for the joint venture between the two parties is that the American company originally provided domestic logistics and distribution to companies such as BESTBUY in the United States. However, because the factories of some large supermarket suppliers in the United States have moved to China, the American company is unable to handle the domestic logistics from the factory to the dock. Therefore, it seeks to cooperate with this company in China to complete the supply chain management activities through the operation of this company. For the Chinese joint venture partner, this kind of business cooperation can learn some new operating models and technologies. Processes and IT can be operated according to US standards, and the US can train marketers to carry out marketing activities in the US market. For Chinese companies that are currently good at exporting, the foreign local market has always been a weak link. The transportation of imported goods and the control of goods exported to foreign countries are a flaw. This method will help Chinese companies understand in a short time. And penetrated into the American market, and gradually gained the dominance of marketing.

For Chinese companies active in the international logistics market, how to get out of the Chinese market, get rid of the status quo of only port handover service capabilities, and gradually move towards global supply chain management, especially to enter the logistics market of developed countries in Europe and America. This is a long-term Subject. www.ExamW.CoM

  Q: What do you think will be the future development trend of Chinese logistics companies?

  Answer: There are a large number of domestic logistics companies. From the perspective of future trends, I think there are several trends worth paying attention to:

  First, customer market segmentation tends to be specialized

The "horse race" of the customer market of logistics enterprises has basically been completed. After fierce market competition, logistics enterprises have basically determined their respective target industries and target customers, and have worked hard to develop the core according to the characteristics of the target customers' logistics service needs Competitiveness, and gradually complete the allocation of resources such as investment, talents, and networks. Therefore, the professionalism of logistics enterprises will be greatly enhanced. The so-called first, second, third, and fourth party logistics enterprises sequence will also be stabilized within a reasonable proportional relationship framework.

   Second, the technology absorption and application capabilities of logistics companies have been greatly strengthened, and new elements such as finance have been added to logistics companies to create new business formats.

New technical elements continue to enrich the service content of logistics companies, and they continue to penetrate into multiple links such as warehousing, transportation, docks, yards, customs declarations, etc. Through the use of the Internet of Things or IT technology, logistics companies can more effectively meet the needs of society. Demand for quality logistics services.

  Manufacturing enterprises connect banking and logistics enterprise services through warehouse receipt pledge and other modes, evolving more business formats and realizing a win-win situation for all parties.

   Third, Chinese logistics companies will quickly enter emerging markets and play a leading role

As the implementation of the "going out" strategy of Chinese enterprises is intensified, some Chinese enterprises with relatively surplus manufacturing capacity will expand their investment in some new types of countries in the world, and some domestic logistics enterprises with strength and network will also follow these enterprises. Emerging country markets. In recent years, the nearly "blowout" development of the domestic engineering logistics market is an example. Moreover, the level of the logistics market in these emerging countries is relatively backward, which also provides a new source of profit and space for the development of domestic logistics companies.

   Fourth, the scale and influence of privatized logistics enterprises will be significantly expanded.

  Q: What do you think are the obvious problems in the business model of Chinese logistics companies? How to solve?

   Answer: The business model is simply what you rely on to make money, and what kind of business model you use to convince and win customers. I think this is a problem that all logistics companies are paying attention to, and it is the life and death line of logistics companies.

For example, some international freight forwarding companies have a problem in their business model that the proportion of direct customers is relatively small, and there are more goods from the second and third generations. The problem with this model is that the ability to control goods is weak, and there are fewer service links. Difficult to develop into supply chain management.

   The business model of some domestic warehousing and automobile transportation companies is mainly low-price competition. Low prices are accompanied by inferior services, or they make profits through illegal methods such as overloading and overtime. Such methods are not large enterprises.

Due to the large number of service categories of logistics enterprises, it is difficult to describe all business models one by one. I think the focus of solving business models is to cultivate the core competitiveness of logistics enterprises. That is to say, there must be a clearly distinguishable one. Different logistics service capabilities that are not easy to replicate. Whether they are engaged in international freight forwarding, warehousing, docks, storage yards, automobile transportation, etc., enterprises need to adapt to local conditions and develop some service characteristics that customers need. This is to solve the problem key point.

  Question: As a logistics expert in the Yangtze River Basin going out in Wuhan, Hubei, can you give some suggestions for the logistics industry in the Yangtze River Basin, especially your hometown?

   Answer: As a person from Wuhan, Hubei, I am also very concerned about the logistics construction in my hometown. Because I work for Sinotrans, Sinotrans has a subsidiary in Hubei, which provides logistics services for some customers in Hubei, such as Wuhan Iron and Steel, Daye Steel Works, etc. In addition, I am also involved in Sinotrans's resource integration work in the Yangtze River Basin. The content of this work is to integrate Sinotrans's riverside subsidiaries into a unified operating platform and realize integrated operation and management with the Yangtze River shipping as a link. At present, the integration work has completed the integration of Jiangsu, Jiangxi, and Yangtze River routes. The integration of the Anhui company will be completed in the first half of this year. According to the plan, it will also be promoted to Hubei in the future. If completed as scheduled, it will provide customers in Hubei and surrounding areas with a relatively strong logistics network service capability, and provide an important logistics channel for Hubei's foreign trade import and export and local market consumption.

Hubei is a land of fish and rice, as well as an important domestic industrial base for iron and steel, automobiles, and photovoltaics. Wuhan is known as the "Nine-province thoroughfare". It has obvious geographical advantages, very developed commerce, and unique development conditions for the logistics market. I feel that while continuously improving the hard environment for logistics, The key point is to strengthen the construction of the soft logistics environment, create the soft power of the smooth flow of goods from the system, and at the same time encourage the innovation of logistics enterprises, and build a group of logistics enterprises with a certain reputation at home and abroad.