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The essence of logistics and its role?
Release time:2022/7/2
Now, many people know that logistics is important and should pay attention to logistics. So why is logistics important, what is the essence of logistics? What role does logistics play? This lecture will talk about this issue.

As mentioned earlier, logistics is material data, including the physical movement of raw materials, and is the process of transportation, packaging, storage, loading and unloading, distribution processing, distribution and information transmission from suppliers to users, which means the logistics activity itself. Generally do not create product value, only create additional value. In this way, is logistics redundant? The answer is undoubtedly no. Why? Because it is impossible for any product to be produced, and it is consumed immediately without handling, packaging, transportation, and storage. At best, one or two of the seven major logistics links can be saved. Therefore, since logistics is a process that cannot be omitted or can not be crossed, and, with the occurrence of this process, a series of problems such as cost, time, distance, and manpower, resources, energy, and environment will arise. Only when people understand these problems objectively, treat them correctly and solve them scientifically can they have the only correct attitude and choice. Generally speaking, the essence and function of logistics are mainly manifested in the following seven aspects.

1. Guarantee

Logistics has the function of preserving value. That is to say, any product must go through a period of time and a certain distance from production to final consumption. During this period of time and distance, it must go through multiple links and multiple times of logistics such as transportation, storage, packaging, loading and unloading. Activity. During this process, the product may be exposed to rain, moisture, water, rust, damage, loss, etc. The mission of logistics is to prevent the occurrence of the above phenomena, to ensure the quality and quantity of products in the process of moving from producers to consumers, and to preserve the value of products, that is, to protect the existence value of products and make the products use value when they reach consumers. constant.

2. Saving

Doing a good job in logistics can save natural resources, human resources and energy, and at the same time save costs. For example, containerized transportation can simplify commodity packaging and save a lot of packaging paper and wood; realize mechanized loading and unloading operations, and automate warehouse storage, which can save a lot of operators and greatly reduce personnel expenses. There are many examples of cost savings that can be achieved by focusing on logistics. Haier Enterprise Group, known as "the first person in the awakening of China's logistics management", has strengthened logistics management and built a modern international automated logistics center, reducing inventory occupied funds and procurement funds from 1.5 billion yuan to 700 million yuan in one year. yuan, saving 800 million yuan in expenses.

3. Shorten the distance

Logistics can overcome time interval, distance interval and interpersonal interval, which is naturally the essence of logistics. The examples of modern logistics in reducing distances are numerous. In Beijing, you can buy fresh fruits from all over the world, and fruits from all over the country are also available all year round; the postal department has improved logistics, which greatly shortens the time and distance of letters. 15 cities in Asia; Japan's distribution center can do it, order before 10 am and deliver on the same day. This kind of logistics speed has brought the geographical distance and time distance between people very close at once. With the continuous advancement of logistics modernization, the international transportation capacity has been greatly strengthened, which has greatly promoted international trade, making people gradually feel that the earth is getting smaller and the distances between continents are getting closer.

Residents of cities are unknowingly enjoying the fruits of logistical advancements. Bananas produced in the south can be bought in all major cities in the country throughout the year; honeydew melons from Xinjiang, white orchid melons from Ningxia, rice from Northeast China, and rice from Tianjin Xiaozhan are supplied to the market in all seasons; textiles, toys, and daily necessities from China In recent years, a large number of people have entered the US market, in addition to the low labor price in China, it is also because of the developed international transportation industry and the reduction of international freight.

Fourth, enhance the competitiveness of enterprises and improve service levels

In the new economic era, the competition among enterprises is becoming more and more fierce. Under the same economic environment, the competition among manufacturing enterprises, such as home appliance manufacturers, is mainly manifested in the competition of price, quality, function, style, and after-sales service. It can be said that home appliances such as color TVs, air conditioners, refrigerators, etc. Today, with the advancement of industrial technology, the quality, function, style and after-sales service of products are not much different at present. The only comparable place is often the price. In recent years, the price wars of home appliances in major cities across the country are enough to illustrate this point. So what are the factors that support the price reduction? If it is said that in order to occupy the market share, it is necessary to reduce the price at a loss once or twice, and it is not unreasonable to make up this loss after the market regains it. However, what if the price cut doesn't work after losing money? It goes without saying that the business could be a complete failure. In the era of material shortage, enterprises can grab the first profit by expanding production and reducing manufacturing costs. In the era of abundant materials, enterprises can grab secondary profits by expanding sales. However, in the new century and the new economic society, the first and second profit sources have basically reached a certain limit, and the remaining "uncultivated virgin land" is logistics. Price reduction is the main means of competition among enterprises in the household appliance industry in recent years. The backing of price reduction competition is the reduction of the total cost of enterprises, that is, cost reductions other than functions, quality, style and after-sales service, which is what we call reducing logistics costs.

Foreign manufacturing enterprises have long recognized that logistics is the magic weapon of enterprise competitiveness. Doing a good job in logistics can achieve zero inventory, zero distance and zero working capital occupation. It is to improve customer service, build enterprise supply chain, and increase enterprise core competitiveness. important way. In the 21st century of economic globalization, information globalization and capital globalization, enterprises can only survive and develop in the fierce competition by establishing a modern logistics structure.

5. Speed up commodity circulation and promote economic development

When talking about this issue, we use the example of the distribution center to speak most convincingly. It can be said that the establishment of the distribution center provides a broad development space for the chain business. Using computer networks to connect supermarkets, distribution centers, suppliers, and production enterprises, it is possible to form an effective combination of commerce, logistics and production enterprises with the distribution center as a hub. With the rapid and timely transmission of information by computer