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Ten Trends of Global Logistics Management

  • Edit:FLOA LOGISTICS CO.,LTD
  • Date:2024-09-05
  • Visits:1189
  • Sort:Company dynamics

The commercial competitive environment promotes the formation and rapid development of supply chain, and at the same time produces the following four major enterprise management development directions based on supply chain, which will change the nature of commercial competition.


1. Globalization


Enterprises will become more and more global. Therefore, how to build a global supply chain of enterprises to meet the needs of global markets and customers has become an important issue for enterprises to compete and develop. The key points to be considered in building a global supply chain should be the differences in economic, tax and legal environment between different countries and regions, and the good use of natural forces and human resources. In this case, it is necessary for enterprises to build a global operating system that can deliver products instantly and economically.


2. Reactivity


Contemporary advanced enterprises have changed from the business model of speculating demand in the past to the business model of highly responding to demand, and a business response system with high economic benefits has also become feasible. At the same time, there is close cooperation between upstream and downstream manufacturers and the enterprise itself, sharing key operation information and promoting the continuous flow of goods.


3. Financial depth


Up to now, turnover and profit are the financial indicators to measure the success or failure of most enterprises. However, these indicators often focus on the achievement of short-term goals, which makes enterprises neglect the management of good operating systems needed to achieve long-term goals, especially the financial effects of logistics in asset utilization, such as shorter cash recovery cycle, reduced inventory storage time and strategic allocation, and zero operational differences. Enterprises can achieve long-term financial performance by means of logistics management.


4. Information relevance


Information has not only played the role of promoting business operations, but also played the role of promoting new business models. For example, information technology has a high degree of connectivity and can effectively connect supply chain related industries; The combination of information technology and management science can build an advanced supply chain decision support system DSS, such as AdvancedPlanningSystem. Supply chain design based on internet.


Based on the above factors, logistics management will become the core of enterprise management in the 21st century. The following 10 trends will continue to become the mainstream of enterprise logistics and operation management.


First, from customer service to relationship management


In the past, logistics management still focused on the integration between internal operations and organizations and the response to downstream customers, with service quality as the main management focus. Therefore, most indicators to measure management performance are order cycle time, fillrate and perfect order rate. However, under the development of supply chain management mode, enterprises gradually turn to emphasize the integration between enterprises, which makes the maintenance and management of customer relationship become more and more important. Logistics management has been upgraded from the disposal of goods to the management of the added value scheme of goods, that is, it is necessary to fully understand the needs of customers and tailor the goods and services they use.


Second, from opposition to unity


In traditional commercial channels, most enterprises are self-centered and pursue the terms or methods that are most beneficial to them, which often leads to confrontation between enterprises and conflicts. However, driven by the pursuit of greater competitiveness, many enterprises began to integrate various commercial circulation functions, and through joint planning and operation, the overall performance of circulation channels was greatly improved.


Third, from prediction to final test


The traditional circulation mode still adjusts various logistics operations and activities by predicting the internal demand and production of downstream customers. Unfortunately, this prediction is rarely accurate, which leads to the situation that there are too many goods without demand in the channel and the goods with urgent demand are out of stock. The emerging trend of logistics management emphasizes the joint mechanism between channel members, who are willing to exchange information on operation and strategy, especially their internal needs and production data, so that upstream enterprises do not have to guess the needs of downstream customers.


Fourth, from accumulated experience to continuous change


The empirical curve method has always been used by enterprises to analyze the market competition trend and development countermeasures, and the accumulated experience of enterprises for many years is the main competitive weapon. However, with the rapid development of science and technology and the continuous development of new business models, the business model of enterprises sticking to existing experience and seeking breakthroughs has become an obstacle to the development of emerging channels. For example, for the traditional retail industry, after the rise of the network,


The formed online shopping information path may bring great impact to traditional businesses in the near future. Therefore, in the highly changing environment, experience and existing access infrastructure have become the most difficult obstacles to overcome. Successful enterprises can only survive in the new century if they grasp the new strategic direction and make continuous management changes.


Five, from absolute value to relative value


Traditional financial measurement only looks at some absolute values, such as market share, but at the same time, the corresponding cost may increase rapidly, and the whole profit of the enterprise may decrease instead of increase. The new method of measuring success will focus on creating relative value, that is, providing value-added services in the channel, and what proportion of the value added by customers can the enterprise occupy. In other words, success refers to the supply of enterprise products or services, which can create value for customers, and some of them can be given back to enterprises. Based on the concept of relative value, many innovative value-added services in logistics are constantly emerging, such as multi-customer goods merger, Cross-docking, and mixed loading in transit.


Six, from functional integration to process integration


The traditional organizational structure distinguishes departments according to their functions. Although it can achieve specialization in the development of each function, it also causes the problems of departmentalism and delay and distortion in information transmission. In the increasingly fierce channel competition environment, enterprises must respond to the needs of upstream and downstream manufacturers or customers more quickly, so they must effectively integrate the operations of various functional departments and use operating procedures to operate instead. Logistics operations and activities are mostly cross-functional and cross-enterprise, so process integration is one of the keys to the success of logistics management.


Seven, from vertical integration to virtual integration


In the traditional access, many large enterprises often carry out vertical integration of access in order to have greater control over access. However, the development of this model is not very successful. On the contrary, it dilutes the resources of the enterprise to unfamiliar areas and erodes the business performance of the industry. Today, the business trend of enterprises is to focus on core competence and entrust non-core business or functions to external professional companies, that is, a main enterprise (such as manufacturing) combines with several professional companies (such as professional logistics companies and professional information companies) to form a virtual integration system to provide the main enterprise with better products and services for the market.


Under the trend of virtual integration, the supply chain system has been successfully developed, and the logistics industry has been able to meet the logistics needs of the main enterprises, constantly develop innovative value-added services, form a more professional logistics service industry, and provide more, better and more valuable services to market customers.


Eight, from information retention to information sharing.


Under the framework of supply chain management, related enterprises in the supply chain must share the information needed for supply chain integration with other enterprises, otherwise an effective supply chain system will not be formed. However, many enterprises still have old management thinking, so they can't change their ideas quickly. Information retention is the most important thing, supplemented by information sharing, which greatly reduces the development of supply chain. Driven by new information concepts and technologies such as database, many enterprises in the supply chain can access the database to obtain the information needed for job decision-making, making joint action more effective.


Nine, from training to knowledge learning


In the foreseeable future, any logistics procedure will still have to be completed by manpower. However, most logistics operations must be carried out in various logistics bases and transportation networks. About 90% of the time, the logistics supervisor can't personally monitor them. For example, the truck driver's work not only runs on the road, but also has to interact with customers face to face. Even the delivery driver may not be an employee of the seller's enterprise. Another example is business personnel and inventory planners, who must understand the dynamic characteristics of the supply chain and make good use of information tools to help formulate effective strategies and implement them. At the same time, the development trend of globalization also increases the complexity of logistics human resource management. The logistics supervisor must change the original skill training mode of individual personnel to knowledge-based learning and development. Take the truck driver as an example. Besides all the skills required for driving, he must also have relevant knowledge about customer service, enterprise database search and the use of distribution decision support system.


The successful management of logistics requires logistics practitioners to master key knowledge and ability, but the development in this area is very insufficient, which needs more efforts from enterprises and professional education institutions.


Ten, from management accounting to value management


Enterprise management must emphasize digital management originally, but in the accounting system that generally accepts accounting standards, the financial information displayed by it has many restrictions, which can not provide information that is helpful to management decision-making. Therefore, when Activity-basedcosting is developed, many enterprises are willing to establish ABC management accounting system with many resources. Although ABC management accounting system is superior to the accounting system of general standards, it is still mainly used in enterprises and is still a cost-oriented accounting system. In the future, value management will improve ABC management accounting system, focusing on providing value creation and cross-enterprise management information to confirm and support value-creating operations, rather than just increasing revenue or reducing costs. Based on the fact that logistics is an activity to create added value for the value chain, the development of value management will promote the characteristics of logistics to be recognized by enterprises, and then greatly enhance the status of logistics management in the supply chain.