电子商务环境下图书物流现状的研究-china logistics management(final)

 

Currently, there are still several problems faced by the development of Chinese logistic technology:

• The low-end logistic equipment. There is still a certain level of inconsistency in different transportation channels and tool standards. The lack of efficient connections between packaging and infrastructure criterion has, to some extent, prolonged the improvement process of logistic mechanization as well as atomization, which also has a bad impact on the transporting stock rate, equipment loading level as well as warehouse utilization.
• The lag of logistic information technology. Recently China paid a lot of attention on information network technology, thus spring up a number of excellent cases in the field of enterprise as well as social public logistic information platform construction. But partly because of Chinese low relatively short mindset, while partly because of the objective difficulties (such as lack of money), this job is far below requirement. Now the Chinese enterprises’ logistic information management and technical level is getting quite behind, Their business are interfered without a public logistic information platform, order dealing, goods tracking and inventory inquiring services, which will do harm to the improvement of their operation efficiency as well as service level.
• The tardiness of logistic standardization process. The standardization of logistics infrastructure and equipment remains a critical problem in the logistics industry development. The level of standardization affects not only the synergic development of all the logistics functions as well as elements, but also the entire social logistics efficiency improvement to some extent. The lag of China’s logistics infrastructure and equipment is manifested in several ways:
  1. The standards among the transportation equipments haven’t been unified. For example, the differences are remaining between the shipping and railway container transportation which already impact the expansion of the through transportation. The percentage of ocean-railway through transportation is relatively low compare to the total volume of container transportation or the railway transportation, which will surely impact the expansion of China’s international shipping business, the improvement of port’s operation efficiency and the development of import-export trading business.
  2. The incompatible of the logistics standard instruments. For example, the lack of efficient links between current pallet standard and the current transport & load/unload instruments standards has already impact the improvement of mechanization and atomization of the pallet in the total logistic process.
  3. There are not enough efficient links between the logistics package standards and the logistics infrastructure standards. Although China has legislated primary national and industry standards for the commodity package, they have not expanded to a logistic unit package standard linking with diversified transportation equipments, load&unload and warehouse infrastructures. This introduces a great influence on the transport loading rate, load&unload burthen rate and the warehouse space usage rate. 

 

2.4Logistic Economy

The flood of foreign manufacturers flocking to the People’s Republic of China along with China’s accession to the WTO has created an immense opportunity for logistics service providers. The size of the potential market for such services in China is astounding, given the country’s population of approximately 1.3 billion and a GDP of US$1.4 trillion USD. China’s GDP is outpacing other western countries by almost 100% (see chart below). Transportation and logistics expenditures were $295 billion in 2003, about 26% of GDP. Even though outsourcing accounts are very small, just two percent of transportation and logistics expenditures, the market for such services is still in its infancy. While there are already a number of third party logistics providers (3PLs) in China, the majority of them are closer to their carrier roots than to real contract distribution providers, says Perry Lam, president of the Hong Kong Roundtable on the Council of Logistics Management.

Between 2000 and 2005, outsourced logistics services in China are anticipated to grow by 25% per year compared to 7.5% for overall logistics services in China. This growth rate also eclipses both the North America 3PL growth rate of 10-15% and the rest of the world at 5-10%. In a survey performed by Mercer Management Group (MMG), several leading 3PL providers in the Chinese market reported annual doubling of revenue in the past couple of years. Shippers with operations in the geographic region also reported expectations for outsourcing to account for 50-60% of total logistics expenditures in three to five years.

The key drivers behind the growth of outsourcing include rapid growth in manufacturing, increasing activity of multinational corporations in China, and pressure to reduce the cost of goods, both domestically and for export. Particularly, the country’s entrance into the WTO has committed the country to greater liberalization in domestic logistics, including allowing foreign companies to operate wholly owned logistics units by December 2004.

 

2.5Future Logistics Policy Environment

 

2.5.1WTO Perspective

With China’s accession into the WTO, the logistics industry is turning more open to foreign companies. As promised, China will open railway, water, and road transportation; warehousing, marine check and transportation infrastructure construction will also be opened. In other areas such as cargo agency and sea regular ship lines will also be more open. For example, the New Foreign Investor on Aviation Rules, enacted on 1^st, August 2002, allowed foreign investor to invest more than just 2 companies. The time table is as follows:

Time	2003.1.1	2005.1.1	2006.1.1	2008.1.1 100%
Item               FC Portion（外资比例）
Railway(CPC7112)		>=51%		100%
Road (CPC 7123)	>=51%	100%
Warehousing(CPC 742)	>=51%	100%
Tran Agency(货物运输代理)CPC 748,CPC749)	>=51%	100%	100%

Note: >=51% means that foreign capital can have majority share and 100% means can set up wholly owned companies.

 

China’s WTO trading rights liberalization commitments do not encompass distribution rights. It defines trading rights as “the right to import and export goods” and state that “China shall progressively liberalize the availability and scope of the right to trade, so that, within three years of accession, all enterprises in China shall have the right to trade in all goods throughout the customs territory of China except for [state-traded goods].” (Imported goods subject to state trading include grain, vegetable oil, sugar, tobacco, processed oil, chemical fertilizer, and cotton. Exported goods subject to state trading include tea, rice, corn, soybeans, tungsten ore, ammonium paratungstates, tungstate products, coal, crude oil, processed oil, silk, unbleached silk, cotton, cotton yarn, woven fabrics of cotton, antimony ores, antimony oxide, antimony products, and silver.) About distribution services, it defines four main sub-sectors of distribution services: commission agents’ services; wholesaling; retailing; and franchising services.

 

1. Legislation Supports

 

In order to maintain the roads, reduce traffic accidents and protect the normal transportation market, Road Safety Law in China, Transportation Execution rules in China were established and take effect together on May 1^st 2004. Besides, Transportation Rules in China takes effect in July 1^st 2004. These three laws are the first laws in China’s transportation and they will help build a more secure and open market. Road Safety Law in China and Transportation Rules in China state clearly who could enter the logistics area, transportation companies’ actives and it also help consolidate the whole market.

 

Road Safety Law in China and Transportation Rules in China have a great effect on the railway, air, water transportation market and they also greatly protect the road and other infrastructures. Road Safety Law in China increases the speed of transportation，but as more trucks are used to transport, roads get more ingested, especially in the west, east and northwest areas. Also, these laws will speed up the system information construction and impact later laws on infrastructure.

 

2.5.3 Government Push

 

The development of modern logistics is much focused in each area. The central government has changed from push the development to lead it and has made new directions. The Economy and Trade Dept of State Development and Planning commission director says that the development must be suitable with the local economy and geography; Also it has to be compatible with the whole economy and the government and the companies should work together to solve the problems encounter.

 

For example, in west China, there is a lot of natural resource with a huge market, and also, the local economy is developing very quickly in recent years surrounding several large centers such as Xi’an, Chongqing and Chengdu. So the government decided to develop modern logistics. For example, based on its characters, it mainly focuses on the modern logistics of oil, coal and other important minerals. Also, the west is the main farming area, so it tries to speed up the construction of cold warehouses and food processing warehouses. For example, Xinjiang province mainly produces cotton, so it pays more attention to the logistics builds of cotton in order to its competency. Although, west China is developing very quickly, there is still a long way from East China, especially in logistics. So the government makes great effort to learn from the east and try hard to have the same standard.

 

3. Chinese Logistics Market and Its Future

3.1Logistics demand situation and perspective in China

The value of 3PL market is about RMB 60-70 billion and is expected to grow 25% annually between 2003 and 2005.[3] MNCs’ demand increases rapidly and they become the main customers for 3PL. New enterprises, especially those of communication, retail and electronic consumption companies such as Lennovo, Gome and Sohu, as well as those traditional enterprises, mainly in the auto, pharmaceutical, beverage industries, are in great need of 3PL. The scope of the service expanded. With the consolidation of the industries in China, companies begin to operate nationally, which put more emphasize on the breadth and depth of the service provided. The service level approaches SCM. Although transportation, warehousing and some other basic services are still dominant, accounting about 80% of the total market; an increasing number of companies need one-stop integrated SCM service, particularly in auto, electronic and FMCG areas. Manufacturers’ supply logistics are usually provided by suppliers or the manufacturers themselves, thus demand for 3PL in this area is relatively small.

 

3.1.1 Demand Structure

 

3.1.1.1．Manufacturer and commercial companies

(1)From the pictures we can see that manufacturers’ raw material logistics are mainly provided by themselves and the finished goods logistics are mainly provided by 3PL.

(2)The percentages of 3PL used all increase from the previous year, which says that manufacturers are more inclined to outsource. But still 3PL has not been used much since in both the two areas the percentage is less than 50%.

(3)Different from manufacturers, commercial companies rarely provide logistics on their own. And also, the percentage of 3PL greatly increased and it is expected to rise above 50% in the next year.

 

Manufacturers’ outsource areas focus on the main line transportation and downtown distribution while commercial companies focus on downtown distribution and warehousing. We can see that outsource focuses of the two are different and there is little need for high value-added services, for example logistics system design.

 

3.1.1.2 Service

(1) Satisfaction Index

There is great difference of manufacturers’ attitudes toward logistics services provided by 3PL and by themselves. The percentage of satisfaction of self-provided service is 1.5 times of that of 3PL. The percentage of total satisfaction is still very small and is declining.

 

The percentage of satisfaction is smaller compared with that of manufacturers’ and is only 33% while the percentage of dissatisfaction is less at 12% and the difference between the attitudes toward logistics services provided by 3PL and by themselves is not evident.

(2)Causes of Dissatisfaction

Causes	3PL		Self
	Mafg	Comm	Mafg	Comm
Cost	14%	9%	28%	19%
Information	22%	22%	31%	19%
Action Speed	17%	19%	19%	16%
Service Integrity	19%	31%	0%	31%
Goods Integrity	6%	3%	6%	9%
Activity Integrity	14%	9%	8%	13%
Service Attitude	11%	12%	8%	6%
Network	17%	16%	14%	31%
Flexibility	11%	0%	6%	6%

While using 3PL, many companies are not satisfied with the information provision either because the companies cannot get the information timely or the information provided by 3PL is incorrect. Other reasons are poor service integrity and high operation cost. On the other hand, poor information, high cost and low speed are the main causes of dissatisfaction of self-provided logistics service. Unlike commercial companies, manufacturers are satisfied with the service integrity and its attitude toward information is different from that of commercial companies.

(3)Service expectation

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Manufacturers mainly hope 3PL can provide services in Logistics System design, main line transportation, downtown distribution and one-stop integrated service. Different from last years’, the need for logistics system design rises greatly which tells that manufacturers begin to pay attention to the logistics system. The high demand of main line transportation indicates that companies are greatly impacted by geology.

Commercial companies tend to be more regionally focused and pay more attention to distribution and optimization. They hope 3PL can provide services in warehousing, downtown distribution and logistics system design. Compared with last year, there is an increasing need for downtown distribution, logistics system design, logistics information system development and payment agency. Additionally, logistics process management, logistics decision management and logistics data mining are getting popular. There is a big market for logistics and information consulting.

 

3.1.2 Demand parties

 

·  MNC

A growing number of MNCs are entering into China seeking for low cost and big market share, bringing in advanced management. According to a recent research, more than 50% of the MNCs are located across more than 50 cities in 20 provinces. These companies constitute the main part of logistics service client. They heavily rely on logistics services and are more inclined to outsource them from 3PLs. 

 

·  Domestic Large Manufacturers

In an increasingly integrated global market, domestic large manufacturers are also prepared to outsource. Although by far they do the main part themselves or just outsource a little part in a specific area to a specific logistics companies, for example, outsource finished goods warehousing to a warehousing company, these large manufacturers will soon outsource to a greater extent as they grow.

 

·  E-commerce companies

With the quick development of e-commerce, more and more conventional retail companies are replaced by newly emergent e-commerce companies. The logistic services they needed are much different from the two above. The quantities are smaller, the frequencies are much higher, the time is more urgent and there are more types. They have great demand for 3PL and the quality is much higher. According to CNNIC’s forecast, the 2004 e-commerce market in China reaches $11.7 billion.

 

3.1.3 Existing Problems

 

3.1.3.1 Not Enough Demand

Currently, about 60-70% of the total logistics is done on own for domestics companies. This greatly affects the total market and increases the logistics cost. According to a research conducted by Accenture, the empty truck rate is about 40% and this will waste RMB 10 billion more. On the one hand, there are many resources at ease such are warehouse and trucks, on the other hand, the integrated logistics companies still don’t have enough resource to use, so the resource need to be integrated.

 

< > 3PL LagImbalance3.2 Logistics supply situation and perspective in China

Every year the logistic expenditure in China is rising up to more than 200 Billion USD. It is anticipated that the logistics revenue will keep a sustainable 20% growth in the following decade.

 

As mentioned before[4], further opening up process of economy and market bring a great logistics demand to China, and meanwhile the speedy construction of infrastructure as well as the information network also provides a great opportunity for the developing industry’s incumbents and incomers. Now there are 510 thousand logistic companies among which 0.13% is foreign invented. While the latter contribute 8% market shares. On the one hand, China’s logistic industry is in her adolescence, no company could dominate more than 2% market share of the total market, on the other hand, the integrated logistics service is becoming the most boosting topic in the country, and the 3PL market will witness a 25% annual growth rate in the period of 2000-2005.

 

3.2.1Corporation Logistics

 

The corporation logistics is remaining as the most important sector in the China’s logistics market. Companies running business at domestic can be divided into four catalogs. They are large state-owned enterprise, medium-size Chinese logistics provider, Logistics divisions of manufacturer and distributor and Foreign Company. Each of them has the specific characteristics and developing trends:

 

< >Large state-owned enterprises, such as Sinotrans and COSCO, are strong in transportation and warehouse assets, have national networks, and typically maintain good relationships with central and provincial governments. The problems these companies face include overstaffing, a lack of customer orientation, and the need to improve service levels. Many are in the process of or about to start restructuring to improve efficiency and economics. Some are also upgrading their capabilities, such as IT systems, to enhance their competitiveness.Medium-size Chinese logistics providers, such as EAS and PGL, have emerged in the past 10 years. These are generally privately owned and tend to focus on one or two key industries. These firms have enjoyed the fastest growth in the market due to their light-asset nature and high efficiency. They face challenges of securing sufficient financial support, attracting management talent, and developing organizational structures that will sustain their growth and profitability.Logistics divisions of manufacturers and distributors, such as Haier Logistics and Attend, primarily provide services to internal customers. Most have in-depth knowledge of the industries that they serve and reasonable network coverage, but they are weak in marketing. The fate of these players is uncertain, as some parent companies are looking to spin off logistics divisions under IPOs, while others are willing to sell these divisions to the first buyer who appears.Foreign companies, such as APL and Maersk, have limited operations in China, typically entering the country with their customers in an effort to service those customers’ global needs. They are characterized by advanced IT systems, operational expertise, and strong global networks. These players are being challenged by their high cost structures (compared to Chinese firms) and their lack of on-the-ground capabilities in China. Commitment to China by corporate headquarters is mixed, as many are being negatively impacted by worldwide cost control efforts. 4.  Conclusion and Implications for Northeast Asia Logistics Market

With China’s booming economic and its entry into WTO, Chinese logistics will be open gradually. Comparing with the developed countries, the modern logistics in China has its expanding opportunity currently and for the future, especially in the terms of management technology, commodity circulating, and infrastructure. This also means the potential cooperation opportunity with Northeast countries. Now Chinese government and logistic industry has already recognized the great market in northeast Asia. China-Japan and Korea have held a regular meeting to standardize their pallet and information systems.

 

The first opportunity lies in the commodity circulating area. Along with the expansion of foreign trade and further opening, the international cooperation in logistics will be strengthened. And China has the desire to follow international standard and modernize traditional logistics. So China will open the logistic area including the highway construction, warehouse, shipping agency, and so on. The multinational corporations are allowed to enter Chinese market in form of subsidiary company or joint venture and dispose its logistic network, according to foreign office. They will bring managerial technology and advanced principles to us and it will give demonstration to Chinese modern logistics. To be specific, cooperation with Korea can be implemented in areas of Northeast logistics network, e-business, export system, and information research, and so on.

 

Secondly, business in logistic is also an opportunity. Chain stores and e-business will push the logistics into a higher phase of development. In recent years, Chinese chain stores have been developing promptly and it has become a new expanding mode. The chain stores require uniform delivery which accelerates the development of logistic. E-business logistics requires precision in variety, timing, batch, specialization and standardization in the equipment. So the corporations with excellent logistics experience in Korea and Japan will have some opportunities in Chinese market.

 

The third opportunity lies in the cooperation in port construction. The countries in Northeast area have exploited the port, which will lead the territorial double investment. We should intensify the logistic cooperation and control the port competition in China. We should make full use the neighboring resource. This requires building the conference between government and Non-Governmental Organizations. This kind of conference has well outset between China and Korea now. About thirty Korea logistic companies have entered Chinese market. But it is only in some simple process which deals with the goods from Korea. It needs to be deepened and broadened in other areas. If we want to have a full cooperation among Northeast countries, we should make an effort in the aviation open, logistic information communion, the standardization and efficiency in logistics.

 

REFERENCE

 

< >National Economy & Trade Commission, Nankai University Modern Logistics Research Center, Report of China Logistics Development [2002], China Machine PressRobert J. Easton, On the Edge: The Changing Face of Supply Chain Management in China, Accenture Viewpoint,2002Jamie M. Bolton and Yan Wei, Distribution and Logistics in Today’s China ,Accenture THE CHINA BUSINESS REVIEW ,September–October 2003China Warehouse Association, The 4^th Logistics Supply and Demand Survey, Logistics Technology and Application, VoL11,2003Morgan Stanley, China Logistics, October 5, 2001Diana Huang ,Mark Kadar, Third-Party Logistics in China: Still a Tough Market, Mercer on Travel and Transport,2002China Logistics and Purchasing Association, China Logistics Year Book 2003China Logistics and Purchasing Association, China Logistics Year Book 2004 Department of Economy and Trade, State Development Planning Commission, The Basic Roadmap of Chinese Modern Logistics development, 2004Anonyms, Chinese 3PL’s development retrospection and propitiation, Sina, 2004Bi Jingquan ,The initiatives to develop regional logistics in West China, (Sichuan) Modern Logistics Development Forum,2004

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