Logistics Trend | Development Direction of Third Party Logistics: Supply Chain Service Providers

Forwarded from Lucky Logistics Network 2022-12-2
The number of third-party logistics enterprises in China is large, the market competition is fierce, and the overall profit of the industry is reduced. When seeking profit sources and development opportunities, third-party logistics enterprises have a new trend of transformation to supply chain service providers.
Supply chain logistics demand
Supply chain service is a network chain structure formed by upstream and downstream enterprises involved in providing services to end users in the production and circulation process. A complete logistics service supply process is completed by the mutual supply of a series of enterprises in the logistics industry. According to the current market, a complete logistics service supply chain structure should include functional logistics service enterprises, third-party logistics enterprises and industrial and commercial enterprises. Guided by the needs of industrial and commercial enterprises, third-party logistics enterprises can finally provide complete logistics services required by customers through the supply of functional logistics enterprises.
Motivation and possibility of third-party enterprises transforming into supply chain service providers
With the continuous growth of China's economy and the improvement of globalization, the scale of the third-party logistics market continues to grow. At the same time, due to the increase of investment in facilities, equipment and technology, the operating costs of logistics enterprises have increased significantly; On the other hand, the intensification of industry competition has led to the general reduction of logistics service charges, so the profit margin of the third-party logistics market has generally declined.
In order to improve the profitability and competitiveness, the services of logistics enterprises are becoming more specialized, and the third-party logistics market is continuously subdivided by industry, region and product. The trend of specialization, the requirements for the improvement of core competitiveness, and the decline of the overall profits of the industry are the main driving forces for third-party logistics enterprises to turn to supply chain service providers.
Domestic third-party logistics enterprises generally have advanced logistics information systems, strong logistics management capabilities and operational experience. They can rely on these advantages to integrate the available resources of functional logistics enterprises and provide customers with integrated logistics services.
The unique advantages of third-party logistics transformation supply chain services
1. Modern information management system that can achieve the whole process control of logistics; Relatively perfect logistics transportation network; Highly systematic and integrated modern management system (including a complete set of modern management systems such as quality control system, operation management system, organization and coordination system, and business contracting and negotiation management system);
2. High quality logistics professionals, advanced logistics facilities and equipment, and the ability to meet customers' personalized needs. These are favorable conditions for supporting transformation.
Types of supply chain service providers
According to the different levels of logistics services, there are different service contents in the logistics service supply chain.
1. Integrated logistics service
Logistics enterprises integrate single logistics service resources to provide customers with integrated logistics services. This process is generally completed by third-party logistics enterprises. On the basis of integrating basic logistics resources, we must make good use of powerful information systems to provide extended logistics services or value-added services, such as cargo tracking, information query, etc. At the same time, rich logistics management knowledge should be used to provide value-added services with certain management optimization technologies, such as inventory control, route design and optimization.
2. Integrated logistics scheme design
Third party logistics enterprises carry out comprehensive planning and design on logistics strategy, logistics facility system, logistics information system and logistics organization structure of logistics customers. Only in this way can we better serve customers and win customers.
3. Design and management of supply chain
The design and management of supply chain and the design of integrated logistics scheme overlap, but they are different. After receiving an order, the third-party logistics enterprise providing supply chain design and management should first decompose the customer's manufacturing process, manage the processing and manufacturing of appropriate manufacturers, and then purchase raw materials. These two processes need to be carried out in a wide range of regions and even globally. Therefore, an important task for supply chain management enterprises is to select and evaluate functional logistics service providers, and rely on strong information processing capabilities to collaborate and integrate all enterprises in the supply chain.
At present, driven by the lower profits, the trend of specialization and the requirements of core competitiveness, third-party logistics enterprises are imperative to seek transformation and development. In combination with the current policy trends, the supply chain service field has great potential. Third party logistics enterprises should seize the reality, hone their strength and open up new blue oceans.