Service Innovation of Contemporary Logistics Enterprises

abstract:

Abstract: Most logistics enterprises in China still mainly provide functional logistics services such as transportation and warehousing, and compete in the market by competing the prices of functional services. To change this situation, an important aspect is to go beyond the traditional logistics service mode and realize the innovation of service concept, service content and service mode. First of all, we should recognize the essential differences between integrated logistics and functional logistics in terms of service nature, service objectives and customer relationship, and establish a brand-new service concept; Secondly, on the basis of transportation, warehousing, distribution and other functional services, we should constantly innovate the service content, realize the extension from basic logistics service to value-added service, from logistics functional service to management service, from physical logistics service to information flow and capital flow service, and provide differentiated and personalized logistics services for customers; At the same time, according to the needs of customers and the development strategy of logistics enterprises, we seek the best service mode with customers, from short-term transaction service to long-term contract service, from completing customer instructions to implementing collaborative operation, from providing logistics services to logistics cooperation.

Keywords: logistics integration, logistics service innovation

Service innovation of contemporary logistics enterprises The service innovation of contemporary logistics enterprises is an important symbol of the transformation from traditional transportation and warehousing enterprises to third-party logistics enterprises, and it is also whether enterprises can provide integrated logistics services to customers and whether they have core customers who form cooperative partnerships. Judging from the current situation, most logistics enterprises in China still mainly provide functional logistics services such as transportation and warehousing, and compete in the market by competing the prices of functional services. To change this situation, an important aspect is to go beyond the traditional logistics service mode and realize the innovation of service concept, service content and service mode.

First, the innovation of service concept. Most logistics enterprises in China cut into the logistics market from functional services such as transportation and warehousing. To develop integrated logistics, we must first recognize the essential differences between integrated logistics and functional logistics in terms of service nature, service objectives and customer relationship, and establish a brand-new service concept.

(1) Integrated logistics service is an integrated management solution that provides multiple functions. According to the definition of American Logistics Management Association (CLM), integrated logistics takes the whole supply chain from raw material supply to finished product distribution as a single process, and manages all the functions of the supply chain in a unified way, rather than managing each function separately. Third-party logistics (3PL) providers are enterprises that provide customers with a variety of logistics services, and it is best to integrate these services. It can be seen that modern logistics enterprises take integrated logistics services as their development direction. Because there is a trade-off between logistics functions, the integrated logistics service is not simply to quote the functional services, but to make a solution with the goal of reducing the total logistics cost of customers and quote the overall service according to the optimized scheme. BOB DELANEY, an American logistics expert, defines logistics as "managing moving and static inventory" and thinks that real logistics savings come from reducing inventory level through inventory management and control. For example, if the average sales inventory cycle in the United States is reduced from 1.37 months to 1.3 months, the logistics cost can be saved by $25 billion. However, functional logistics companies only focus on the cost reduction in functional areas such as transportation and warehousing. We can't "manage dynamic and static inventory" from the perspective of the whole supply chain. So they can only get limited cost savings, which is unsustainable; It can't provide a logistics solution to optimize the whole or most of the supply chain, and it can only provide a suboptimal solution at most.

(B) Integrated logistics project is to let customers fully understand the value brought by logistics services. Integrated logistics project is to let customers fully understand the value brought by logistics services. Since 1980s, CLM has been organizing research on enterprise logistics performance measurement and the value of third-party logistics. According to the recent sampling survey, in the past two years, the customer logistics cost of third-party logistics enterprises has decreased by 1 1.8% on average, the logistics assets have decreased by 24.6%, the order cycle has decreased from 7. 1 to 3.9 days, and the total inventory has decreased by 8.2%, which shows that third-party logistics services can enhance customer value in many aspects. In fact, managers of different shippers have different understandings of the value of third-party logistics. Chief Operating Officer (COO) often makes the decision to outsource the logistics operation of an enterprise to a third-party logistics only based on the difference between the more efficient service price of the third-party logistics and the higher cost of the existing operation of the enterprise. The Director of Marketing (CMO) attaches importance to the ability of third-party logistics in improving services and delivering services to existing and new markets, so as to increase sales and establish better long-term relationships with customers. Chief Financial Officer (CFO) is willing to see assets such as facilities, equipment and even inventory disappear from the financial balance sheet of the enterprise, release funds for more productive activities, and immediately and continuously improve the return on assets of the enterprise; Chief Information Officer (CIO) is often willing to use the system and technical resources of third-party logistics to avoid the cost and trouble caused by the continuous upgrading of self-built systems.

(3) The customer relationship of integrated logistics service is a win-win partnership. Since integrated logistics service is a kind of management service, the goal is to comprehensively enhance customer value, then the benefits of integrated logistics service should not only come from functional service charges, but should share the value generated by logistics rationalization with customers. Therefore, at present, the third-party logistics services in developed countries generally do not charge according to the transaction pricing, but adopt cost-based pricing, that is, the third-party logistics providers reach an agreement with customers to increase the price or charge a certain management fee according to a certain proportion of the logistics cost. The advantage of this is that it can make the third-party logistics provider reduce the difficulty and risk of quoting each functional service separately, and the second is that the customer can analyze the logistics cost together with the third-party logistics provider, so as to have a clearer understanding of their own logistics cost. Although China's existing logistics services have not got rid of the traditional settlement methods based on transportation fees and storage fees, logistics enterprises should still avoid bargaining with customers on functional service charges when developing integrated logistics projects. It is necessary to start with the shortcomings of customer logistics operation and discuss with customers how to improve it, so that customers can realize the benefits of logistics enterprise services first and then negotiate reasonable service prices. As a matter of fact, as customers grow stronger because of the rationalization of logistics, the scale of logistics outsourcing will naturally expand accordingly, the depth and breadth of cooperation between the two sides will also increase, and the benefits and scale benefits of logistics services will inevitably increase. If innovative logistics enterprises want to gain advantages in the fierce competition of integrated logistics service market, they must take customers as the center, give full play to their own advantages, constantly innovate service content on the basis of functional services such as transportation, warehousing and distribution, and provide differentiated and personalized logistics services for customers.

Second, the innovation of service content. In order to gain an advantage in the fierce competition of integrated logistics service market, logistics enterprises must take customers as the center, give full play to their own advantages, constantly innovate service content on the basis of functional services such as transportation, warehousing and distribution, and provide differentiated and personalized logistics services for customers.

(1) Extending from basic logistics services to value-added services, traditional logistics services realize the space-time transfer of goods through transportation, warehousing, distribution and other functions. It is a basic service that many logistics service providers can provide, and it is difficult to reflect the differences between different service providers and improve service income. Integrated logistics services should extend value-added services on the basis of basic services with various functions according to customers' needs, and show the differences with market competitors with personalized service content. Transportation extension services mainly include transportation mode and carrier selection, transportation route and planning, cargo stowage and freight bidding. The extended services of warehousing mainly include goods collection, packaging, supporting assembly, bar code generation, labeling and return processing. The value-added services of distribution mainly include JIT station distribution, installation, debugging and maintenance of distributed goods and other sales support. According to the report on the logistics situation in the United States, the revenue of third-party logistics in 2002 was $65 billion, an increase of 6.9% over the previous year. Among them, domestic transportation management income based on non-assets is $654.38+09.5 billion, and international transportation management income is $654.38+06.6 billion; The income from special contract transportation based on assets is 9 billion dollars, and the income from warehousing and its value-added services is 654.38+06.9 billion dollars. Logistics software revenue of $3 billion; It can be seen that value-added services based on non-assets are the main source of revenue for third-party logistics services. According to China Federation of Logistics and Purchasing and Mercer Company's revenue decomposition of China's third-party logistics market from 1999 to 200 1, transportation revenue accounts for 53%, warehousing revenue accounts for 32%, and logistics information and value-added services revenue only accounts for 15%, which shows that China's logistics value-added services have great room for growth. Value-added service actually extends the field of enterprise logistics outsourcing from non-core business to core business. Generally speaking, when determining the field of logistics outsourcing, enterprises first choose non-core businesses such as transportation, warehousing and distribution, and then gradually extend to the core and non-core businesses such as order processing, assembly and procurement, and finally may involve core businesses such as after-sales support. With the deepening of cooperation with third-party logistics, enterprises will continue to expand the scope of outsourcing, and finally only focus on research and development, production, sales and other core links. (II) Extending from logistics function service to management service Integrated logistics service does not complete multiple logistics functions under the management of customers, but organically links all logistics functions by participating in the logistics management of customers, realizes efficient logistics system operation, helps customers improve their logistics management level and control ability, and provides effective support for procurement, production and sales. Therefore, when developing integrated logistics projects, we should make a fuss about the service content of logistics management, including customer logistics system optimization, logistics business process reengineering, order management, inventory management, supplier coordination, end-user service and so on. , so as to provide customers with integrated logistics solutions and realize "one-stop" service to customers. DAVID BOVET, vice president of Mercer Management Consulting Company, pointed out that only when owners look at logistics outsourcing in a more enterprising and adventurous spirit can they find its real value. Shippers expect the key value-added benefits of third-party logistics to come from supply chain innovation, which will improve the competitiveness and profitability of enterprises; To do this, the consignor and the third-party logistics provider must establish a strategic partnership with * * * goals, * * * interests and * * * risks. For example, CTI Logistics Company not only manages the purchase logistics of spare parts for General Motors (GM), but also purchases spare parts from selected suppliers according to GM's purchase orders, and then delivers them to GM's production line after JIT assembly, and then charges GM the overall service fee including purchase fee, logistics operation fee and certain profit. In this way, CTI shares the risk of inventory occupation and damage of GM auto spare parts, and encourages CTI to improve logistics efficiency and service quality. Therefore, the third-party logistics provider extends from logistics function service to management service, which can not only bring greater benefits to customers, but also close the cooperative relationship with customers.

(3) The extension from entity logistics service to information flow and capital flow service, the basis of logistics management is logistics information, which is used to control entity logistics; An important way to rationalize logistics is to "replace inventory with information". Therefore, integrated logistics services must provide real logistics services and information services at the same time, otherwise it is the undertaker of logistics functions, not logistics managers. Logistics information services include advance delivery notice, delivery receipt feedback, order tracking query, inventory status query, goods tracking in transit, KPI monitoring, management reports and so on. USCO Logistics Company provides SUN with a logistics information platform for server maintenance of spare parts, which enables SUN and its more than 50 supply chain partners to enjoy real-time order, delivery and inventory information, and achieves the effects of canceling intermediate links, reducing inventory, shortening delivery time and improving customer service level. It is called the Third Party Information Provider (3PI). DICK METZLER, president of APL Logistics Company, believes that the biggest factor that logistics outsourcing affects supply chain management is data management, because it is a huge challenge to maintain and extract data in a format widely accepted by enterprises and their supply chain partners to realize the visualization of supply chain. Third-party logistics providers not only need a lot of technical input, but also need the ability of continuous improvement, exception management and process reengineering. Therefore, the investment in technology, talents and information infrastructure has become an important means to distinguish third-party logistics providers from competitors. At the same time, third-party logistics providers also participate in the supply chain management of customers by providing capital flow services. For example, UPS merged with the First International Bank and transformed it into UPS CAPITAL, providing customers with value-added services such as advance payment, credit guarantee and collection, so as to speed up the capital flow of customers, release the funds occupied by customers' inventory and reduce the import and export tariffs of customers, thus realizing a complete supply chain solution for providing customers with physical logistics, information flow and capital flow. In the logistics cooperation with Avon, a world-famous cosmetics company, China Post Logistics not only provides "end-to-end" logistics services from product warehouses to specialty stores, but also realizes the real-time docking between China Post Logistics Information System and Avon Information System. And relying on China Post's green card system and payment gateway to provide online payment service for Avon, it has become a successful case of "trinity" service for China logistics enterprises.

Third, the innovation of service mode.

(1) From short-term transaction service to long-term contract service, functional logistics services usually adopt the transaction service mode of "single settlement" with customers, and the relationship between logistics enterprises and customers is short-term business relationship. Comprehensive logistics service providers need to sign service contracts with customers for a certain period of time to establish long-term cooperative relations with their customers, so third-party logistics is also called contract logistics. Logistics contract is the basis of third-party logistics cooperation. Logistics enterprises should pay special attention to formulating the contents of contracts with customers, including service quality, duration and scope, establishing KPI and determining service methods. Some key issues in contract negotiation, such as KPI benchmark, service rate, problem solving mechanism, insurance, responsibility, etc., must be clearly agreed, otherwise it will easily lead to disputes and even ruin the cooperation between the two parties. Third-party logistics providers seek long-term cooperation with customers, so signing a contract is only the beginning of cooperation. Pay special attention to the maintenance of customer relationship and deepen cooperation with customers. ROBERT AURAY, president of USCO, believes that the cooperation between third-party logistics providers and customers will go through a development process from tactical cooperation to strategic interaction, including:

(1) Meet customer needs: In the initial stage of cooperation, logistics service providers should respond to customer service requirements, make customers feel easy to cooperate and maintain customer service quality;

(2) Exceeding customer expectations: With the deepening of cooperation, logistics service providers should strengthen communication with customers, enhance service initiative, especially improve information system capabilities, and strive to make logistics services exceed customer expectations;

(3) Participating in and meeting customers' needs: After being familiar with customers' logistics operations, logistics service providers should actively understand customers' new logistics needs, participate in exploring customers' logistics improvement opportunities, and realize the transformation from tactical cooperation to strategic interaction;

(4) Win the trust of customers: Logistics service providers strive to create value with customers, and finally win the trust of customers, and the two sides establish a long-term strategic partnership.

(2) From the completion of customer instructions to the implementation of collaborative operations, traditional logistics is a functional service at the operational level, and usually only needs to complete the service function according to customer instructions. Because integrated logistics services should participate in the logistics management of customers and operate logistics solutions formulated by customers, logistics enterprises need to establish effective communication channels with customers from beginning to end and cooperate to complete logistics operations according to project management mode. GEORGIATECH's survey shows that the main reasons why customers are dissatisfied with third-party logistics are that service providers can't fulfill their service and technical commitments, can't achieve the goal of reducing costs, and lack strategic improvement; People generally attribute these shortcomings to the partner selection process, but in fact, more often the problem lies in the failure to manage the implementation of the project. Therefore, after signing the contract, it is very important for both parties to cooperate to complete the implementation of the project on the basis of mutual trust. Both parties shall set up their own project managers and be equipped with corresponding personnel with relevant functions; Logistics enterprises should learn more about customers' needs in sales, finance, IT, human resources, manufacturing and procurement, and work out detailed implementation plans with customers. The implementation teams of both parties * * * formulate performance measurement indicators and reward and punishment methods, and discuss the details of the project operation, especially the handling of abnormal situations. Before the formal operation of the project, a trial operation should be carried out to find and solve the existing problems. In order to ensure the smooth progress of the project, the logistics enterprise should establish a joint office system with the logistics personnel of both customers, or set up an operation team composed of logistics personnel of both parties to deal with the problems in daily operation in time. In order to ensure the quality of logistics services, both parties should reach an agreement on the performance monitoring and evaluation system to make the cooperative relationship transparent. Usually, they should maintain daily communication at the operational level, and the management should conduct monthly performance evaluation, as well as irregular inspection and annual evaluation.

(3) From providing logistics services to logistics cooperation, traditional logistics enterprises generally provide functional services to customers based on their own storage facilities, transportation equipment and other assets, while third-party logistics suppliers mainly provide management services to customers based on their own professional skills and information technology. Therefore, they often discuss cooperation in logistics assets, capital and technology with customers according to their needs and strategic intentions, so as to achieve a win-win situation.

1. system takes over the logistics assets of customers: if customers already have logistics assets such as vehicles, facilities and employees in a certain area, logistics enterprises need to establish a logistics system in this area, which can completely purchase the logistics assets of customers, take over and own the logistics system of customers, and even receive the employees of customers. After taking over, the logistics system can serve this customer and other customers at the same time, improve utilization rate and share management costs through resource sharing. For example, OOCL systematically took over Want Want Group's warehouse in Hangzhou and transformed it into OOCL East China Regional Logistics Center.

2. Sign logistics management contracts with customers: sign logistics management contracts with customers who want to own logistics facilities (assets), and use their logistics systems to serve other customers while serving customers, so as to improve utilization rate and share management costs. This method is common in the logistics services of commercial enterprises, such as the logistics management services provided by Hehuang Tian Bai Logistics for Beijing Wumart Mall.

3. Establish logistics companies with customers: Third-party logistics providers often establish joint venture logistics companies with customers according to their needs for strategic target industries. Even if customers retain part of the property rights of logistics facilities and continue to participate in logistics operations, in order to strengthen effective control over the logistics process; It also injects the capital and professional skills of the third-party logistics, making the third-party logistics providers in a favorable position in the logistics service market competition of the target industry. This method is more common in high value-added industries such as automobiles and electronics. For example, TNT Logistics and Shanghai Automotive Industry Corporation jointly established Shanghai Anji Tiandi Logistics Company. In order to stand out in the fierce market competition, logistics enterprises must guide and meet customer needs through continuous service innovation and provide differentiated services different from competitors in the target market. To achieve this, we must fully understand the connotation of integrated logistics service, adopt modern logistics technology and information technology to enhance service capabilities, establish a management team with rich logistics service experience, and strive to form a strategic partnership with customers.

summary

Judging from the current situation, most logistics enterprises in China still mainly provide functional logistics services such as transportation and warehousing, and compete in the market by competing the prices of functional services. To change this situation, an important aspect is to go beyond the traditional logistics service mode and realize the innovation of service concept, service content and service mode.

Reference [1] Li Wanqiu, Operation and Management of Logistics Center, Beijing, Tsinghua University Press, 2003, P57, p62 [2] Miao Jingyi, Application of SWOT Analysis in Customer Satisfaction Research, Shaanxi, Statistics Press, 2003, P23P89 [3], Hu.