Modern logistics system and cost control ideas

The so-called outsourcing, namely, the manufacturing companies to pool resources, savings in management costs, enhance core competitiveness, the way its contract logistics business entrusted to specialized logistics companies (third party logistics) operational. Outsourcing is a long-term, strategy, interaction and mutually beneficial engagement and contract execution.

1. Integration of logistics processes  

modern logistics system and cost control ideas, it will supply all economic activities, production, sale, transportation, inventory and related activities such as the flow of information as one dynamic system, concerned about the performance of the entire system and costs.  

integrated logistics supply chain is an important manifestation of (Supply Chain) concept of. Supply chain logistics systems starting from procurement through production and goods distribution to users throughout the process, seen as an interlocking "chain", entire supply chains, logistics management as the basic unit, rather than a single function. In supply chain management, world-class companies by increasing the supply chain to the consumer value and reduce costs throughout the supply chain to enhance the competitiveness of the whole supply chain, the competition is no longer just a single competition between companies, and increased competition for supply chain and supply chain.  

2. Logistics technology specialized  

performance for modern techniques in logistics activities in a wide range of applications, for example, bar code technology, EDI technology, automation technology, network technology, intelligent and flexible technology, and so on. Transportation, loading and unloading, warehousing and other commonly used specialization, standardization, intelligent logistics facilities and equipment. These modern technologies and equipment application greatly improves the efficiency of logistics activities, expanded the field of logistics.  

3. Logistics management information  

logistics Informationization is the inevitable demand of society as a whole. Modern logistics are highly dependent on large amounts of data, information collection, analysis, processing and instant updates. In modern society, highly developed information technology, networking technology, information obtained from customers and orders database, code, and logistics of electronic and computerized information processing, real-time information and standardization, information penetration to the logistics of each of these areas. A large number of free travel and stationary equipment for logistics of the third party logistics by relying on its global business information. In a sense, has become the modern logistics competition competition of logistics information.  

4. Socialization of logistics service  

characterized by the rapid development of third party logistics and Logistics Center. With the deepening social division of work and the increasingly complex market demands, production and operation of logistics technology and logistics management requirements have become more sophisticated. Many business enterprises have come to realize that rely on their own strength cannot gain a competitive advantage in every field. The way they tend to use outsourcing, the enterprise is not good at logistics link to professional logistics company, or establish independent logistics specialist departments within the enterprise, and to focus its limited resources on own areas of strength. According to the United States Northeastern University 1998 survey of 500 large companies in manufacturing, the logistics business to the third party logistics enterprise's owner, 69% is working on logistics business to the third party logistics enterprises in the future 10% of the owner. Professional logistics sector due to their talent, technology and information, to use the more advanced logistics technology and management methods, achieve economies of scale, so as to achieve rationalization of logistics – product from the supply to the demand side in the whole process, to link at least, the shortest time, shortest, most provinces.  

5. International   of logistics;

in the tide of globalization of production, generally on a global strategy of transnational corporations, selected sources of raw materials, spare parts all over the world, sales of selected products and services market. Therefore, selection and configuration is also beyond the borders of its logistics, focusing on the global market. Multinational common practice is to select a global allocation of distribution center and distribution of key supply warehouse in access to raw materials and distribution of new products using existing logistics network on the ground, and this advanced technology into new regional markets. For example, Nike, through global bidding and purchasing of raw materials, and then in Taiwan or Southeast Asia (there are production enterprises), when products are transported to central warehouses in Europe, Asia, and close sales. Similarly, global sourcing of raw materials and spare parts, have greatly reduced the cost of the car, change the location of the car production line.

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