Benefits and risks of logistics outsourcing in home appliance enterprises
At present, logistics outsourcing has become a major trend of logistics in home appliance industry. How to weigh the benefits and risks of logistics outsourcing has become a problem that household appliance enterprises need to consider carefully when choosing logistics mode. Through analysis, this paper holds that logistics outsourcing of home appliance enterprises is conducive to optimizing enterprise management, reducing logistics costs and enhancing the core competitiveness of enterprises, but it will also bring huge business risks, management risks, information asymmetry and information exposure risks to home appliance enterprises. Therefore, some measures are put forward to avoid risks, such as cultivating logistics management talents, establishing logistics outsourcing performance evaluation system, establishing enterprise credit evaluation mechanism and establishing public information platform.
Keywords: home appliance enterprises; Logistics outsourcing; Interests; danger
At present, there are two main modes of home appliance logistics in China: one is self-operated logistics; The second is logistics outsourcing. However, due to the large volume, neat handling and storage, and large logistics volume, logistics outsourcing has also become a major trend of logistics in the home appliance industry. Logistics outsourcing means that the production or sales enterprises (demanders) entrust their logistics business to a professional logistics company (that is, the third-party logistics enterprise, 3PL) through contracts in order to concentrate on improving their core competitiveness. Outsourcing is a long-term, strategic, interpenetrating and mutually beneficial way of business entrustment and contract execution. Enterprises can outsource all logistics business. Some businesses can also be outsourced. Although logistics outsourcing can improve the speed of enterprise material circulation, save storage costs, reduce the backlog of funds in transit, and bring great benefits to both supply and demand sides, in practice, many enterprises often interrupt or even fail logistics outsourcing for various reasons. Therefore, how to balance the benefits and risks of logistics outsourcing has become a problem that home appliance enterprises need to seriously consider when choosing logistics mode.
1 Benefit Analysis of Logistics Outsourcing in Household Appliance Enterprises
At present, there are two main modes of home appliance logistics in China, namely, the self-built logistics company represented by Haier and the logistics outsourcing mode represented by Electrolux and Kelon. For companies in the middle of the market, the establishment of logistics companies is a test, because logistics companies have suffered policy losses a few years ago, which may be a fatal blow to weaker companies. Now, more and more enterprises change their ideas and realize that outsourcing logistics to third-party logistics is actually a win-win choice.
1. 1 Optimize enterprise management
Household electrical appliance enterprises adopt outsourcing strategy, which can reduce the company size and streamline the organization, thus alleviating the problems of slow organizational response and insufficient innovation spirit caused by scale expansion. Make the organization participate in the competition more flexibly. At the same time, after logistics outsourcing, enterprises can speed up the reorganization and optimization of internal organizational structure and processes. Improve management efficiency and reduce the system risk brought by the change of external business environment. In addition, the management affairs of small-scale companies are simpler, which makes it easier for companies to focus on the cultivation of core competence. For example, in 2002, Kelon and Little Swan, well-known domestic appliance manufacturers, joined hands with COSCO to establish Guangzhou Antaida Logistics Co., Ltd., and Kelon handed over the logistics business to Antaida, and achieved many achievements. First of all, through joint bidding, the trunk transportation of Kelon refrigerators, air conditioners, freezers and small household appliances was integrated, compared with the same period of last year. The overall transportation price has dropped by 9.6 percentage points, and this alone has saved tens of millions of yuan in transportation costs for Kelon every year. At the same time, through the merger of logistics companies, the number of personnel has been reduced from more than 90 to 60 now; Simplify the operation process of the factory and reduce the management cost of the logistics operation of Kelon Company, saving about 7 million yuan every year. Secondly, a distribution center for refrigerators, air conditioners, freezers and small household appliances was established in Sanyo Warehouse, which improved the speed and efficiency of distribution and further met the needs of departments.
The demand of dragon production and sales. In addition, logistics management standards and warehouse safety management system have been formulated. Ensure the safety of Kelon products and meet the requirements of logistics operation. It can be seen that Kelon's logistics outsourcing practice is relatively successful, and its outsourcing advantages have been fully reflected.
1.2 Reduce logistics costs
Logistics outsourcing brings direct cost savings. For enterprises, cost has always been the focus of their attention. Only by providing high-quality products and services and controlling the operating costs can enterprises win in the fierce competition. After years of development, the difference in product quality between different enterprises has gradually narrowed. In addition, in recent years, the price of household appliances has been declining year by year, and the price war has intensified. Home appliance enterprises are facing enormous cost pressure. According to statistics, the circulation cost of home appliance industry accounts for 40% of the total cost, and the high circulation cost is unbearable for many manufacturers. In order to change this embarrassing situation, in today's situation where the prices of raw materials including copper, aluminum, steel, plastics, fuel and so on continue to rise, home appliance enterprises must turn their attention to reducing logistics costs in order to gain strong competitiveness in the market. The question is whether enterprises choose self-operated logistics or logistics outsourcing. According to general data analysis, using third-party logistics services can greatly save logistics costs than ourselves. For example, Midea enterprises concentrate on product production and R&D by divesting logistics business, and Ande or other third-party logistics companies in society provide professional, information-based and fastest logistics services for their production, manufacturing and sales, which has achieved remarkable results. By 2004, the transportation cost, storage cost and logistics payment cost of Midea Group had dropped by 35%, 30% and 40% respectively. Ande has also played an important role in the change of the logistics pattern in the United States. Because Ande participated in the competition, other suppliers had to reduce prices and improve services, which enabled Midea to achieve its first goal of establishing Ande Company and reduce the logistics cost of the group.
1.3 Enhance the core competitiveness of enterprises
Logistics outsourcing can help home appliance manufacturers focus on core competitiveness and establish brands. Core competitiveness is the decisive force for enterprises to gain and expand their advantages in market competition. In order to have a long-term competitive advantage, enterprises must constantly protect and develop their core competitiveness. As far as the domestic home appliance market is concerned, with the improvement of consumption level, consumers' demand for home appliances has developed from the demand for single-function products to the adaptive demand now, and people pay more and more attention to product quality, brand awareness and service. As far as the international environment is concerned, China's home appliance enterprises are still at the end of the value chain of the world's home appliance industry, and the lack of core competitiveness and investment in shaping core competence have become the main obstacles for the home appliance industry to participate in international competition. After China's entry into WTO, the entry of foreign brand household appliances has had a great impact on China's household appliances industry. If home appliance enterprises still have to undertake the distribution of products themselves and put too much energy into non-core business, it will inevitably affect the cultivation and development of their core competitiveness and the long-term development plan of enterprises. By outsourcing the logistics industry to a third party, the home appliance manufacturing industry can concentrate its effective resources on the research and development of new products, management innovation and the construction of new channels, shorten the time for products to enter the market, increase brand competitiveness, concentrate on building core competence, and increase the chips for home appliance enterprises to compete in the international market. Take Electrolux as an example. 1995 When the company and Changsha Zhong Yi Refrigerator Factory jointly established Electrolux Zhong Yi Refrigerator Co., Ltd., the division of responsibilities was clear: Electrolux was only responsible for product production, and Zhong Yi Refrigerator Factory was solely responsible for product sales and after-sales service. Subsequently, Electrolux handed over the logistics to a professional logistics company. Chen Xiangdong is the national logistics manager in Electrolux. Since Chen took over the logistics power, the market share of refrigerators has rapidly jumped from zero to 12%. In addition, as one of the world's air-conditioning giants, Midea has spun off its logistics business and established Ande Logistics Company. The home appliance industry has entered the era of low profit, and it is not suitable for enterprises to spend too much energy on logistics. Moreover, as a professional manufacturing enterprise, logistics business is a non-main business, which is difficult to standardize and specialize, and often leads to waste. Stripping off the logistics business, Midea can focus on products, while Ande Logistics focuses on logistics. Midea's divestiture of Ande Logistics Company can provide the fastest logistics service for Midea's production, manufacturing and sales on the one hand; On the other hand, Andrew can expand his business. One of the secrets of Midea's success is to always adhere to the core strategy of "total cost leading". From scale to technology, from brand marketing to market layout, the formation of strategy and tactics reflects the cost advantage. In fact, the benefits that home appliance enterprises can obtain by adopting logistics outsourcing are far more than the above aspects. For example, professional logistics companies can help enterprises provide more professional logistics services and improve customer satisfaction. However, logistics outsourcing is also a "double-edged sword", and its benefits and risks can not be ignored, which is also the main reason for the lack of actual demand for logistics outsourcing in home appliance enterprises.
2 risk analysis of logistics outsourcing of home appliance enterprises
2. 1 huge business risks
By the end of 2005, the profit point of home appliance logistics industry was about 10% lower than the overall profit level of the whole logistics market. Began to move from the era of meager profit to the era of baoping. This is mainly because the characteristics of household appliance logistics are bulk product logistics, large volume and long transportation distance, so the profit level is relatively lower than that of small batch and multi-variety high-tech electronic products and fresh products and foods with long service time. The direct logistics cost is estimated to be about 40 billion yuan, of which the international logistics cost accounts for 40% of the total cost and the domestic trunk transportation cost accounts for 10% of the total cost. Warehousing and additional expenses account for about 65,438+05% of the total cost, circulation channel logistics cost accounts for about 65,438+05% of the total cost, procurement logistics cost accounts for about 65,438+05% of its overall logistics cost, and its in-plant logistics and management expenses account for about 5% of the total cost. From the distribution of home appliance enterprises, white appliance enterprises account for 30% of the total direct cost, small appliance enterprises account for 40% of the total direct cost, black appliance enterprises account for 20% of the total direct cost, and home appliance accessories enterprises account for 10% of the total direct cost. Therefore, the overall logistics cost of household appliances ranks behind vegetables, food and coal, and becomes the fourth largest product category in China. At the same time, the requirements for transportation and time limit of household appliances are relatively loose, so their logistics costs are relatively low. With the emergence of flat-screen TV and small household appliances enterprises, the logistics service quality of household appliances logistics enterprises will be further improved, and the risk coefficient of logistics will increase, which will lead to the increase of their own cost quotation in logistics bidding and the increase of logistics cost of household appliances enterprises.
2.2 Enterprise Management Risk
2.2. 1 enterprise management difficulties
Logistics outsourcing will have a great impact on the operation mode of enterprises, and the working methods and contents of production, marketing, finance, human resources and other departments must be changed accordingly. Transfer cost is the management cost that will increase when enterprises with certain logistics capabilities switch from self-management to outsourcing. For home appliance enterprises, there are many business divisions. For example, Haier has six business divisions, including air conditioning department, refrigerator business development department, freezer business development department, washing machine business development department, financial business development department and bioengineering business development department. Midea also has six business divisions, including air conditioning, household appliances, compressors, motors, kitchen utensils and magnetrons. Moreover, every business department has logistics business, so the logistics outsourcing cost is quite high. If the logistics operation within the enterprise is not well managed at the beginning, it will be difficult for the logistics managers of the enterprise to manage the external third-party logistics suppliers, which may eventually lead to the collapse of the logistics operation system of the enterprise and the paralysis of the whole enterprise.
2.2.2 Enterprise logistics operation is out of control.
After long-term outsourcing of logistics business to third-party logistics providers, enterprises will gradually be at a disadvantage in the process of cooperation, and may eventually lose control of logistics operation. Because the third-party logistics enterprises participate in all aspects of home appliance enterprises' procurement, production, sales and customer service. Becoming a logistics manager of home appliance enterprises will inevitably reduce the control ability of home appliance enterprises on logistics and increase the bargaining power of third-party logistics enterprises and home appliance enterprises. With the deepening of the involvement of third-party logistics enterprises in the logistics business of home appliance enterprises, this ability will also be strengthened, posing a potential threat to home appliance enterprises. When there is a problem in coordination, there may even be a phenomenon that the logistics is out of control, that is, the third-party logistics enterprises can't fully understand and complete the logistics business according to the requirements of home appliance enterprises, or the third-party logistics enterprises don't take every link as the center of home appliance enterprises, but take a passive attitude from their own standpoint, thus reducing the quality of customer service and leading to the loss of some customers of home appliance enterprises. In order to facilitate control, home appliance enterprises should try to choose a number of third-party logistics providers, but this short-term behavior will increase the cost of enterprises or reduce the quality of logistics services, which will have a negative impact on their own management.
2.3 Information asymmetry and information leakage risk
In the process of logistics outsourcing cooperation, poor communication between outsourcing enterprises and third-party logistics suppliers, lagging information feedback and information distortion all enhance the information asymmetry of logistics outsourcing cooperation to some extent. Once the cooperative enterprises are unwilling to share information, it will lead to the information of the whole logistics outsourcing cooperation is not smooth, as well as the information leakage in the process of sharing information, and the information risk will be formed accordingly.
2.3. 1 information asymmetry risk
In the process of logistics outsourcing, information asymmetry may lead to excessive inventory and unreasonable logistics service prices, which will bring certain information risks to enterprises. Inventory is the most difficult problem to solve in home appliance industry. Low inventory turnover will seriously affect the cash flow of enterprises. However, the lag of information will cause the bullwhip effect and increase the inventory. For example, the sales of a certain brand of air conditioner, although the retail of products changes greatly with the weather, is actually regular. However, due to the lag of information, the fluctuation of orders from distributors to branches is much larger than that of retail sales, and the fluctuation of orders from the group itself to suppliers is even greater. In order to meet the same level of logistics services as retailers, wholesalers must have more safety stocks than retailers. Similarly, the regional branches and manufacturers of home appliance enterprises should also have higher safety stocks. This leads to the high cost of logistics inventory.
Risk of information leakage
Logistics strategy is an important part of enterprise development strategy. After outsourcing logistics business, logistics service providers usually have a deep understanding of the enterprise's strategy because they undertake the function of implementing this strategy. From the adjustment of procurement channels to market strategies, from the current operating conditions to future expectations, from product transformation to customer service strategies, logistics service providers may get relevant information. Therefore, logistics outsourcing will increase the risk that the core strategy of the enterprise will be leaked. Especially for the high-tech household appliances industry, the disclosure of trade secrets will be a fatal blow to enterprises. This is also an important reason for the home appliance giant Haier Group to build its own logistics. In addition, customer information is also at risk of being leaked. In today's increasingly fierce competition in home appliance industry, customer information is one of the most important resources for home appliance enterprises. If customer information is leaked, the loss will be incalculable. Because logistics service providers usually don't only face one customer, when information is shared among more enterprises, the risk of business secrets of enterprises being leaked will increase.
3. Measures for Household Electrical Appliances Enterprises to Avoid Logistics Outsourcing Risks 3. 1 Cultivate Logistics Management Talents
Logistics plays an important role in home appliance enterprises, running through procurement, production, sales and other links. However, after the outsourcing of logistics business, enterprises still need logistics management talents. Talent is the magic weapon of enterprise competition. Specialized logistics services require managers not only to have skills in warehousing and transportation, but also to master advanced IT systems and know about supply chain management and regional distribution center planning. This management team is composed of many talents with different professional backgrounds, and it is difficult to meet the demand only by the human resources within the manufacturing enterprise. Enterprise logistics management talents are compound talents who master modern theories and skills of economy, trade, transportation and logistics, and have a solid English ability in international trade, transportation and logistics management. Jack Roser, a famous American logistics expert, believes that professional logistics consultants are more important than business leaders in dealing with the issue of enterprise logistics outsourcing. Logistics consultants can bring unfamiliar things to business leaders. He needs to manage and maintain the company's project design and planning process, and provide logistics requirements and project data. These are inseparable from the success or failure of logistics outsourcing. Business leaders only play the role of supervisors. If enterprises lack experienced and strategic logistics management talents, logistics outsourcing will be impossible.
3.2 the establishment of logistics outsourcing performance evaluation system
The performance evaluation index of logistics outsourcing includes logistics cost index and service quality index. Logistics cost index is the total cost of the whole logistics outsourcing. Service quality index is a special concern in home appliance logistics outsourcing, which should include customer satisfaction, timely delivery rate, accuracy, cargo loss rate and so on. Performance evaluation indicators should systematically evaluate the whole logistics operation process of third-party logistics suppliers, accurately reflect the relationship between third-party logistics suppliers and cooperative enterprises, and effectively realize the utilization of third-party logistics suppliers and home appliance enterprises.
Family integration.
(1) The services provided by logistics providers should be clearly and strictly regulated in terms of time, quantity, quality and cost. When formulating these standards, we should consider the objective requirements of home appliance enterprises and leave room for the initial standards. When formulating measurement standards, we should be as clear as possible, and the interpretation of standards should be unique, so as to make preparations for avoiding disputes and shirking responsibilities.
(2) To measure the effect of outsourcing logistics in terms of cost and efficiency, most of these standards can refer to the original evaluation standards when these businesses are carried out internally. The implementation of logistics outsourcing will often bring new functions and businesses to enterprises, thus forming a group of people who specialize in this field, and making relevant standards for their work performance.
(3) The outsourcing performance evaluation and measurement mechanism should not remain static, but should be constantly updated to meet the needs of the overall strategy of the enterprise.
3.3 the establishment of logistics enterprise integrity evaluation mechanism
Enterprise integrity is an important part of social integrity, and it is very important for home appliance enterprises to establish a logistics enterprise integrity evaluation mechanism. To evaluate the integrity level of China logistics market systematically, it is necessary to establish a complete, effective and quantifiable integrity index system. Through this index system, we can intuitively describe the integrity development of the existing logistics market, monitor the problems existing in the logistics market, and make scientific decisions on the cultivation of the logistics market. Evaluation indicators include enterprise quality, management quality and service quality indicators. Among them, the service quality index is the most important, which includes customer satisfaction, timely delivery rate, accuracy rate, cargo loss rate and so on. Enterprise quality indicators include logistics qualification grade, enterprise market position and employee quality. Management indicators include contract performance rate, logistics safety rate and logistics excellence rate. Through the credit evaluation of logistics enterprises, the service level of logistics enterprises can be improved, so that home appliance manufacturers can safely hand over logistics business to logistics enterprises, gain time and energy to develop and innovate core main business, and obtain scale benefits of enterprise management.
3.4 the establishment of public logistics information platform
Information asymmetry is an important factor leading to logistics outsourcing risk, and reducing information asymmetry is helpful to reduce the risk of outsourcing enterprises. At present, the home appliance market is relatively mature, and the sales network of home appliance enterprises is huge, which requires a perfect logistics network to adapt to it. The way for logistics enterprises to establish logistics public information platform and improve the transparency of logistics operation process is to establish an extensive and effective information sharing and information management system, so that logistics outsourcing enterprises, logistics enterprises, other related industries and government departments can realize the sharing, management and supervision of information resources to the greatest extent. The establishment of information system and the enjoyment of information technology have realized the rapid and accurate transmission of information data in all logistics links. Logistics outsourcing enterprises can communicate and cooperate with logistics enterprises more conveniently by using information technology, and the channels for observing and collecting information content are unified, so the asymmetry of information content will be effectively improved during the service period. At the same time, through the timely transmission of information in the information system, communication, coordination and cooperation between the two parties may be completed in a relatively short time. Relieved the asymmetry of information enjoyment time. Partners should keep each other confidential while sharing information, and they should bear corresponding legal responsibilities for revealing each other's business secrets.
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