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How can logistics companies reduce costs and reshape competitiveness

release time:2020-07-21Popularity:401

Netcom China (formerly VOIP China Net) news, according to statistics from relevant authoritative organizations, since the second half of 2008, the decline in foreign trade has put unprecedented pressure on the transportation and logistics industry. International air and sea freight volumes fell by 7% and 14% respectively in November from the same period in 2007. Domestically, the growth rate of freight volume in all forms of transportation, including railway, waterway, road and air transportation, has begun to drop sharply without exception. Correspondingly, the overcapacity due to the economic slowdown has forced a wave of price cuts in almost all related areas of transportation and logistics. At present, the gross profit margin of warehousing companies has dropped to 3%-5%, while that of transportation companies is only 1%-3%.

   Can a price reduction really solve the problem?

   According to Wang Zuo, vice president of the Chinese Society of Logistics, more than 40% of logistics companies have lost profits or even losses, and small and medium logistics companies in some areas have begun to withdraw from the logistics market.

  The law of economics tells us that when the economy fluctuates and the growth rate declines, especially when the market shows a deflationary trend, the first thing that cannot be supported is the relatively weak anti-risk ability of small and medium-sized enterprises.

   Why are logistics companies unable to support it? Let us explore the reasons.

  First, industry characteristic factors: logistics suffers from a common problem in the service industry-the "customer group flu".

Since the logistics industry is a service industry, it will be more affected by the user’s industry status. Basically, it can be said that when the logistics industry’s customer base catches a cold, the logistics enterprise will also be immediately infected. If the logistics industry is booming and users are weak, the logistics industry is weak." As we all know, since 2007, the manufacturing industry in southern China, which is dominated by export trade, has closed down due to the financial crisis in Europe and the United States. The closure of the major "bulk customers" of these logistics industries has caused severe shocks in the logistics industry, especially the shipping industry. . China's manufacturing industry is mainly concentrated in Guangdong. The group closure of these enterprises has caused a chain reaction of a series of related supply chains and service chains. The manufacturing industry is the main customer group of the logistics industry, and logistics is the first chain of the manufacturing industry. Therefore, it is an inevitable trend that the logistics industry will fluctuate with the fluctuation of the manufacturing industry. Its development trend, even the Guangzhou branch of the global freighter industry giant Maersk is not immune, let alone small and medium logistics companies.

  How to get rid of industry fate? I believe that every entrepreneur is thinking or reforming.

  Second, macro factors: at home, the government is making economic restructuring and adjustment; abroad, the financial crisis

   In recent years, the government intends to slowly transform the national economy from a “manufacturing economy” to a “knowledge-intensive” economy, but the manufacturing customers of logistics companies have not been able to quickly transform. China cannot always play the role of the "world factory". The government has already adopted policies to restrict the export of products with relatively low production content a few years ago, and has continued to strengthen and accelerate it. In 2007, the relevant person in charge of the Ministry of Finance stated clearly that various tariff adjustments are "to further restrict the export of high energy-consuming, high-polluting, resource-based (two high and one capital) products, promote energy conservation and reduce consumption, and encourage the import of raw materials." The adjustment of internal national economic policies, coupled with the impact of the external financial crisis, has catalyzed the closure of a large number of low-competitive, high-energy-consumption and low-value-added production enterprises.

   In the past two years, thousands of similar enterprises in Guangdong have closed down, causing serious shocks in their logistics service chain.

  The enterprises left in the market are all elites. At this time, the state adopted support and protection policies, and provided export tax rebates and even revitalization support for important industries.

   Third, direct factors: small and medium logistics companies have insufficient liquidity and weak risk resistance.

There is little working capital, but every day, cars, trains, ships, personnel salaries, and property leasing require a large amount of current expenditures. Once the funds are cut off, their lives will be dead!

If the client enterprise closes down, or the client chooses other logistics service providers with lower prices or better services, small enterprises have not many customers, and in the absence of business and limited funds, the business risk of the enterprise suddenly rises to “fatal” "Highly, companies that cannot cope with it naturally die out.

The above reasons are relatively obvious, so I won't repeat them here.

  So, where is the logistics industry now? The author will try to explain it from five perspectives: value chain and competitiveness reengineering, service innovation, informatization, market opportunity acquisition, and logistics industry revitalization specifications. Among them, I will also recommend a shortcut to improve the enterprise. Competitiveness, and finally cite corresponding examples for your reference.

   1. It is the inevitable choice of logistics enterprises to reorganize the value chain and strengthen competitiveness

  As we all know, service is intangible. Due to the variable and unpredictable service at any time, it becomes more difficult for service-oriented enterprises to control it. But in contradiction with this, the biggest challenge of corporate management is to turn the intangible into tangible, and the unpredictable into measurable, so that the business and operational risks can be controlled as much as possible.

Because of this, Harvard Business School Heskett and other scholars divide the value chain of service-oriented enterprises into two parts: internal and external. The internal chain includes: the ability, satisfaction, loyalty and productivity of employees, and the external chain of the enterprise includes: customer loyalty, customer satisfaction, and the value of products and services that customers obtain. The two interact, coexist and die, and need to be improved together to enhance the competitiveness and profit of the enterprise.

The Confucian theory of "self-cultivation, family governance, country and the world" can form an excellent fit with the internal and external revisions of the logistics enterprise value chain! Self-cultivation can improve the personal quality and ability of employees; family, straighten out the relationship at all levels of the enterprise, internal Improve corporate culture, increase employee loyalty and satisfaction, and unite the company; govern the country, through the improvement of corporate operation management efficiency and productivity, so that the company itself has a strong competitiveness in the industry; peaceful world, win customers Trust, satisfaction and loyalty have continuously improved the company's position and market share in the logistics industry.

From a specific operational point of view, for the company, the company's control and improvement of the internal chain lies in improving the overall quality and ability of employees (operating ability, understanding ability, interpersonal communication ability, ability to handle customer complaints, etc.), and improving its treatment and culture of the enterprise Satisfaction of the atmosphere, sincere love and loyalty to the company, and its professional ability and experience.

If the enterprise has enough internal power, it will naturally improve the service and control ability of the external chain. The strong ability, high quality, and professional service ability of employees will increase the "gold content" of the logistics enterprise's own product value and service value. Has won increasing customer satisfaction and loyalty.

   However, when the industry is in recession and chaos, some companies frequently resort to fainting moves.

  Some short-sighted logistics business owners may reduce transportation costs or personnel employment costs (such as time, service refinement, employee quality, etc.) due to the decline in prices and profits, which reduces the quality of services they provide to customers.

   This creates a vicious circle, but it will accelerate the death of some logistics companies that could have survived. It is sad to lose the opportunity to regain a larger market share after the industry downturn!

  2, innovation! Seize the opportunity to transform the company from weak to strong

   Commercialized market competition has always been the survival of the fittest and the survival of the fittest.

   Some people say that SARS in 2003 created JD.com, which was forced to transform and choose online sales. It has grown from a few thousand to tens of thousands of IT market stalls to an emerging e-commerce company with annual sales of more than 1.3 billion.

   This is the power of innovation!

   For service industries such as logistics companies, correct innovation is always the main theme of its vigorous vitality!

Innovation can be reflected in all aspects, such as the introduction of talents and the creation of corporate culture atmosphere. Especially in terms of providing added value of products and services, logistics companies can actually have more innovative articles to do. The purpose of innovation is to differentiate companies from rivals at the same level, with similar service prices and contents, so that customers can get a completely different service experience in the process of receiving services. The needs of customers are always the baton for the growth and innovation of logistics enterprises. It enables enterprises to gain greater recognition and love from customers without basically increasing costs, thereby generating a higher sense of identity and loyalty.

  3. Seize the opportunity to change the market structure and make every effort to prepare for the new enclosure movement in the industry

The large fluctuations in the industry structure and the withdrawal of some small and medium-sized enterprises due to the smaller market size have left logistics companies in a floating state, but they have also created opportunities for secondary growth for larger logistics companies and change persisters. And space.

  The financial crisis will always recede, coupled with the strong support of national policies, for some companies, this is a great opportunity for some companies to expand their business scale and carry out market races when the future economy and industry heat up!

   So if some logistics companies are going against the market at this time and take strong measures to promote their corporate image, it will not be uncommon.

Any industry will have its own threshold, even if new investors enter the logistics industry market, it will take some time to adapt. Therefore, the foresighted people in logistics companies have plenty of time and space to make big deals. Once the market conditions become better, a large number of market shares will be included in the banners and pockets like a "staking out of a race".

As Wang Shusheng, chairman of Datian Group, said, "The financial crisis is a bad thing, but it is also a good thing. The financial crisis can bring a big wave to domestic logistics companies. A number of small-scale companies have been eliminated, and the brand effect of large companies will be highlighted. ; The financial crisis has given us a great opportunity to recruit talents! At the same time, Datian will also look for some suitable companies for acquisitions and mergers to accelerate the depth and breadth of the service network coverage. After the crisis, China's logistics industry will definitely be able to produce within a few years The new leader, I hope Datian can become one of them."

  4. Fully understand the planning requirements and goals of the revitalization of the logistics industry

   As we all know, on February 25, the State Council approved the logistics industry and was included in the "Ten Industry Revitalization Plan". At the same time, the government also put forward corresponding four-point planning requirements and nine major projects for the logistics industry. As a logistics business owner or staff, you need to know this well and conduct corresponding policy research to benefit the enterprise itself.

   The four requirements of the logistics industry revitalization plan are:

   First, it is necessary to actively expand the demand for the logistics market, promote the interactive development of logistics enterprises and production and commercial enterprises, and promote the socialization and specialization of logistics services.

  Second, it is necessary to accelerate the merger and reorganization of enterprises and cultivate a group of large modern logistics enterprises with high service standards and strong international competitiveness.

   Third, we must promote the development of logistics in key areas such as energy, minerals, automobiles, agricultural products, and medicine, and accelerate the development of international logistics and bonded logistics.

  Fourth, we must strengthen the construction of logistics infrastructure and improve the level of logistics standardization and informatization.

   The meeting also identified nine key projects to revitalize the logistics industry.

The nine major projects in the logistics industry mainly include: multimodal transport and transshipment facilities, logistics parks, urban distribution, bulk commodities and rural logistics, manufacturing and logistics joint development, logistics standards and technology promotion, logistics public information platforms, logistics technology research and Emergency logistics.

  5. Shortcuts to improve-improve the efficiency of business operations through informatization

The improvement of the quality and ability of enterprise employees cannot be completed overnight. The shaping of corporate culture requires time and a sound management and construction system. Improving employee benefits is not a good strategy for companies that are currently in the "wintering" period, so the only quick way The way is to improve the operating efficiency of the enterprise, thereby directly and indirectly improving the service quality of the enterprise, and enabling customers to obtain relatively good satisfaction and loyalty.

   The exchange and communication of information between employees and customers of logistics companies play a vital role in the process of providing services. Therefore, it has become a general trend for customers to obtain more complete and satisfactory services by paying a relatively low cost to reengineer the communication system between enterprises and customers.

  Is there such a good thing that spending less informatization procurement costs can improve the company's operational efficiency and service satisfaction?

  Have! Some logistics companies are doing this now. By transforming the company’s communication platform, it not only improves the information communication capabilities of the company’s internal employees and external customers, but also reduces the company’s operating costs, which can be described as killing two birds with one stone!

  In the next learning model and typical case, we will share with you some successful experiences of logistics enterprise information transformation.

   6. Case study:

  The IP communication platform of Baosong Logistics: Realize the "timely + anytime" communication interconnection across the country and even across the continent

   If you can significantly reduce financial costs and improve business efficiency by transforming the corporate communication system, do you think it can be done?

   Baosong Logistics did it! Through the creation of the IP communication platform, it has saved 48% of its own logistics communication costs, and the proportion of communication costs in the company's output value has also dropped to 0.3%.

  Bao Supply Logistics is a third-party logistics company with a sales volume of 1 billion yuan after 13 years of development. At present, Baosong Logistics has implemented the upgrade and reengineering of the communication platform in its management and operation-the introduction of the IP communication platform, and its service speed, quality and customer satisfaction have achieved good results and customer praise, and at the same time greatly reduced Its communication costs.

   Here we come to understand and analyze in detail the construction of Baosong Logistics' IP communication platform.

Baosong Logistics is headquartered in Guangzhou, with 7 branches, 8 subsidiaries and more than 50 offices in 65 cities across the country, forming an internationalization that covers the whole country and begins to extend to the United States, Australia, Thailand, Hong Kong and other places logistics network.

  With such a huge logistics network spanning across the country and three continents, in addition to using software systems, can it be possible to realize the "timely + anytime" communication interconnection between all regions of the country and even three continents at low cost?

   It sounds like a idiot. The cost of telecommunications is well known. If you want to ensure "timely + anytime" communication interconnection, you need extremely high communication costs.

But if you want to achieve "high" quality service to customers, "guarantee" the precious time of customers, so that each network can realize "real" people can communicate and negotiate at any time and even hold meetings at low cost to ensure accurate communication of some complex matters And communicate with orders. These three "high-fidelity" requirements, if they can be realized, can not only improve the control and communication capabilities of each chain link of the logistics service system, improve office efficiency, but also provide customers with excellent quality and differentiated services from competitors. And to the greatest extent possible to save the internal call costs of the entire group.

In the end, the IP communication platform solution of Zed-3, a well-known international communication company in the communication industry, solved this problem for Baosteel. The quality of the work of the company's internal employees has improved, and the customer satisfaction has been higher. Reduced communication costs, treasure supply can be described as killing three birds with one stone!

Combining the traffic model and business communication needs of logistics internal communication, Zed-3 (Jesirui) recommended a complete set of VoIP solutions to Baoguo, including VoIP communication services and IP call center services.

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