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Decision analysis of enterprise logistics self-management and outsourcing.
Using the method of decision tree, this paper expounds the enterprise logistics model and explains the decision analysis process of enterprise logistics self-support and outsourcing. Firstly, the advantages of independent management and outsourcing of enterprise logistics are discussed. Three basic principles of logistics outsourcing decision are given. And make decision analysis on enterprise logistics outsourcing; This paper studies the actual case of chemical logistics outsourcing in An Zhi, and analyzes the motivation and economic benefits of logistics outsourcing in detail. Finally, a summary is made. Keywords: logistics self-management; Logistics outsourcing; Decision analysis At present, most of the research on self-employment and outsourcing at home and abroad adopts qualitative analysis method, which is intuitive, but lacks systematicness and accuracy. Especially for complex decision-making problems, the scientific nature of decision-making is questioned and the usability of decision-making results is poor. In this paper, the decision tree method is used to analyze logistics self-operation and outsourcing in detail. This method can reveal the internal mechanism of enterprise logistics operation mode more accurately, and the decision analysis process of enterprise logistics self-support and outsourcing is closer to reality. Taking the chemical industry in An Zhi as an example, this paper makes an empirical study. 1. Analysis of enterprise logistics outsourcing decision-making Logistics outsourcing decision-making is a complex process, which determines whether to outsource the enterprise's logistics business, which projects to outsource and to what extent. These are the problems that enterprises face when making logistics outsourcing decisions. 1. 1 Analysis of influencing factors of logistics outsourcing decision In the construction of supply chain, specific enterprises should decide whether to outsource logistics business according to their actual situation. The author thinks that it is reasonable to analyze the strategic nature of each logistics function and the operation level and ability of enterprises to this logistics function. The significance of specific factors is as follows: (1) system strategy. That is to judge whether the logistics function constitutes the core competitiveness of the enterprise and whether it is of strategic significance to the whole enterprise. (2) Logistics operation level. Mainly refers to the enterprise logistics operation ability and management control ability, that is, whether it has mature logistics experience, whether it can improve the service level and reduce the logistics cost. (3) Enterprise logistics capability. Mainly refers to the hardware ability of enterprises to carry out logistics business, that is, whether there are facilities, funds and talents. 1.2 enterprise logistics outsourcing decision tree According to the above three decision criteria, draw a logistics outsourcing decision tree, as shown in figure 1. The decision results are shown in table 1. (1) When the sub-functions of logistics are of strategic importance and very important to enterprises, logistics will generally be self-supporting; When the sub-functions of logistics are not of strategic importance and of little importance to enterprises, outsourcing and third-party logistics are generally considered. In view of their own weaknesses, find suitable partners to enhance their competitiveness. (2) The sub-function of logistics is not of strategic importance and has little effect on building the core competitiveness of enterprises. Moreover, enterprises lack the facilities, funds and manpower to carry out this logistics business, and have no relevant operating experience. When the operation level is relatively low, they should choose to outsource this logistics function completely, which will help enterprises cultivate their own competitive advantage and improve customer service level. (3) When the sub-function of logistics is of strategic importance and plays a great role in building the core competitiveness of an enterprise, and the enterprise has the implementation, capital and manpower to carry out this logistics business, has mature logistics operation experience and can achieve cost leadership, it should operate its own logistics. 1.3 Analysis of the implementation strategy of logistics outsourcing With the development and change of external environment and enterprise's own resource conditions, the logistics strategy of an enterprise will change accordingly after the changes of factors such as logistics status and logistics capability, but it will not constitute the core competitiveness of an enterprise in general. Priority should be given to outsourcing logistics functions that are not important to enterprises and lack logistics cooperation funds, facilities and logistics operation capabilities. With the improvement of logistics outsourcing risk control ability and third-party logistics management and control level, the degree of outsourcing gradually expands (Figure 2); With the improvement of supply chain management and the further improvement of third-party logistics service level, in practice, more and more enterprises use a single third-party logistics company to provide all-round systematic logistics services and logistics solutions. On the one hand, it is convenient for both parties to communicate information and strengthen the cooperative relationship between them. On the other hand, the evaluation and monitoring of the service performance of third-party logistics can improve the cooperative relationship and service level more effectively, and the enterprise logistics strategy under supply chain management will have new development. 2. Decision Analysis of Chemical Logistics in An Zhi 2. 1 Brief Introduction of An Zhi Chemical Industry NCH Chemical is a global multinational enterprise, established in 19 19, headquartered in the United States, and 198 1 entered China with its headquarters in Shanghai. Up to now, sales services have spread all over major cities in China. With the rapid expansion in recent years, the business volume has increased at an annual rate of 30%, so that the original logistics system has fallen far behind the needs of development, and the bottleneck of logistics operation has emerged. Therefore, optimizing the value chain and improving the logistics operation level of enterprises have become the strategic choice of An Zhi Chemical Industry. 2.2 Decision-making Process of An Zhi Chemical Logistics Outsourcing 2.2. 1 Problems in the operation mode of the original logistics system and their causes (1) The self-operated proportion of logistics activities is remarkable, which distracts the energy of the enterprise's core business. The goods transferred from the factory to the office and delivered directly to the customers by the office are all completed by their own vehicles, so the vehicle return rate is extremely high. Each office is equipped with 18 ~ 20 staff to complete their respective service functions such as receiving and delivering goods, and build or lease warehouses locally. A large number of self-provided transportation capacity and warehousing increase the logistics cost of enterprises. (2) The transportation cost has not been effectively controlled. Due to the lack of management, each office has an independent transportation cost accounting method, blindly pursuing timely delivery, so it is impossible to deliver goods in batches, resulting in unnecessary detours and unnecessary waste. Moreover, because some employees take the delivery machine for personal affairs, it also affects the work efficiency and increases the transportation cost. (3) There is negative profit logistics. The sales of each office are different, from tens of millions of large enterprises to hundreds of thousands of small enterprises. However, the logistics cost of each office is almost the same, so that the logistics cost of some offices is greater than their sales revenue, forming negative profit logistics. (4) Low customer service satisfaction. Because the offices are too scattered, the customer order satisfaction rate is very low, which leads to an increase in customer churn rate. Because when the same inventory meets the same market demand, the more concentrated the inventory, the higher its satisfaction. (5) In order to improve customer satisfaction, the inventory of the whole system is too high. With the expansion of sales, the demand of warehouses around the country is also rising. In order to prevent large-scale shortage, maintain the safe inventory of each warehouse and ensure customer satisfaction, the number of orders placed by each office from headquarters has been enlarged, which has produced the bullwhip effect-the inventory of the branch warehouse has greatly increased, so it is required to rent a larger warehouse. (6) The logistics management system is incomplete. Although Shanghai headquarters has an order processing and inventory management system, the computers, networks and software of each office are basically in the primary application stage, and the current accounts are inconsistent. Sometimes, due to the sales staff picking up the goods directly without a bill, or because the warehouse keeper is negligent in management, there are often cases that are inconsistent with the actual accounts of the headquarters. The existence of the above-mentioned logistics problems has distracted the whole energy of the enterprise, increased the logistics cost and reduced the profit margin of production, which has seriously hindered the development of the company. Therefore, the company should re-plan the logistics system and consider whether and how to outsource the logistics business. 2.2.2 Logistics outsourcing decision analysis using decision tree According to the three decision criteria given above, it is judged which decision path An Zhi Chemical will take to solve the above problems. The detailed analysis is shown in Table 2. As can be seen from Table 2, the logistics subsystem is of strategic importance to the development of enterprises, and enterprises have neither the level of logistics operation nor the hardware facilities for logistics operation, so enterprises should establish strategic alliances and partnerships to find powerful partners, take risks and enjoy benefits, that is, choose decision path 4. In view of the problems existing in the current logistics work, since 2006, the company decided to outsource transportation and some warehousing to ZJS. 2.2.3 An Zhi Chemical Solution An Zhi Chemical has carried out the following reforms to gradually solve the above-mentioned series of problems. (1) Reconstruct the logistics system and establish a direct distribution system; (2) separation of goods, the office is only responsible for marketing and cancellation of its own small warehouse; (3) There are four regional distribution centers in China, located in Beijing, Shanghai, Shenzhen and Wuhan respectively; (4) The products are directly transported from the Shanghai factory to four distribution centers by trunk transportation, and each distribution center is only responsible for the product distribution in the region; (5) Form a strategic alliance partnership with ZJS, who will be responsible for all distribution services of chemical products in An Zhi; (6) For the shortage of warehouse resources caused by inventory blind spots and seasonal fluctuations in remote areas, ZJS is responsible for storage and distribution, and it will be directly transported to ZJS's warehouse after offline. 2.2.4 The effectiveness analysis of logistics outsourcing proves that ZJS has played an important role in resource management, production guarantee and cost optimization. As a third-party logistics partner, ZJS meets the development needs of An Zhi Chemical Industry through high-level service, lowest logistics cost and uninterrupted production. The analysis is as follows: (1) An efficient logistics system with bar code as the core is established. An Zhi Chemical invested nearly one million yuan to purchase equipment and software systems, realizing the point-to-point connection between the distribution center in different places and the logistics system of the headquarters. On the one hand, enterprise decision makers can know the real-time inventory situation of headquarters logistics center and off-site distribution center at any time, thus ensuring the minimum inventory and reducing the backlog of inventory funds; On the other hand, it shortens the information exchange time to the greatest extent and reduces the information exchange cost. (2) The logistics efficiency is improved. After confirming the customer's order, all customers can basically achieve the promise of delivery within 2 days, and some customers can even achieve the same-day delivery, which will greatly benefit the sales of enterprises and shorten the capital turnover cycle; At the same time, it can effectively improve the performance ability of high-frequency small-batch scattered orders. It turns out that product delivery orders are all filled in by hand, which is easy to make mistakes and has a large workload. Now the computer is used to make a list, which has a unified format, easy tracking and convenient settlement. (3) The storage cost has decreased. First of all, because the distribution center is reduced to four, the warehouse rent can be greatly reduced. Furthermore, because all the warehousing and warehousing operations are completed on the basis of barcode management, the workload is greatly reduced, and the number of operators is reduced from more than 400 in China to less than 170 now, which also greatly reduces the personnel cost. The total cost of the warehouse can save 2 million yuan a year. (4) The overall transportation cost is reduced. Because An Zhi Chemical outsourced the distribution to ZJS, on the one hand, it reduced the management difficulty of the enterprise, which was conducive to improving the core competitiveness of the enterprise, on the other hand, it realized economies of scale and reduced the logistics cost. Only the transportation cost can save about 6,543,800 yuan per year. (5) Accelerate the establishment of a modern enterprise system and implement the ISO9000 standard management mode. Break the old thinking mode, input strong market economy concept, replace the old management mode with modern enterprise management system, and standardize every operation link, procedure and responsible person. 3. Conclusion Logistics outsourcing and self-management are not absolutely opposite, they can complement each other and serve the development of enterprises. In addition, when choosing logistics mode, enterprises should proceed from reality, combine their own core competitiveness, existing logistics situation, logistics outsourcing market maturity and other internal and external factors to determine the scope and degree of logistics outsourcing. We must look at our own specific situation, we should not blindly follow the example of large enterprises to invest in their own logistics construction, nor should we ignore the accumulation of our own logistics management experience and the cultivation of logistics talents in order to meet the requirements of long-term development of enterprises.