Analysis on typical cases of warehousing and logistics enterprises

Four case analysis:

A warehouse is the sum of buildings or places where items are kept and stored. According to the non-standard, it can be divided into different categories:

According to the field in which the warehouse is located in the social reproduction process, it can be divided into: warehouses in the production field, transit warehouses and national reserve warehouses.

According to the types of stored materials, they can be divided into: comprehensive warehouses and professional warehouses.

According to the different storage conditions of stored materials, they can be divided into: ordinary warehouses, constant temperature and humidity warehouses, advanced precision instrument warehouses, refrigerated warehouses and special warehouses.

gt; According to the structural characteristics of the warehouse, it is divided into: ground warehouse, underground warehouse and semi-underground warehouse.

In addition to these, there are also warehouses with other names, such as bonded warehouses, transit warehouses, etc. The distribution center also has a storage function to a certain extent.

Case 1:

Fubao SEG Industrial Co., Ltd. (hereinafter referred to as: Fubao SEG) is a subsidiary of Shenzhen SEG Storage and Transportation Co., Ltd. Fubao SEG has a 28,000 square meter bonded warehouse in Futian Free Trade Zone, Shenzhen. The main problem of the company is that the fixed assets of the bonded warehouse exceed 80 million, but the annual profit is less than 5 million, and the return on assets is too low. Improve the morale of staff in the bonded warehouse area, strive to enhance service awareness, and focus on quality improvement; increase the proportion of logistics value-added services, significantly increase sources of income other than warehouse rental fees, win more high-quality customers with high profit contribution rates, and eliminate profit margins Low-level C customers are all issues that must be addressed.

1. Analysis of the company's current situation:

Fubao SEG's main customers include Japan's Ricoh International Express Co., Ltd., Holley Shipping Co., Ltd., Burlington International Logistics Co., Ltd., China Resources Logistics and other nearly 100 foreign-funded, Hong Kong-funded logistics companies and manufacturing companies located in the Pearl River Delta region. For these enterprises, Fubao SEG provides long-term and short-term rental services for bonded warehouses, as well as logistics value-added services such as distribution and processing.

Fubao SEG has about 40 employees. Including 5 managers, about 10 forklift workers and porters, and about 20 more people including customs declarers, inspection declarers, customer service personnel, warehouse managers, and handymen (including janitors and equipment maintenance personnel).

Fubao SEG’s profit model is the charging of logistics services with warehouse space rental as its core. The basic charge item is warehouse rental fee. In addition, there is loading, unloading, consolidation/consolidation, labeling, shrink film/panning, packaging changes, simple processing (such as subcontracting, repackaging, simple assembly, etc.), and customs clearance on behalf of customers. , inspection and other services. The main expenses are repair and maintenance costs caused by labor, water, electricity, storage and equipment depreciation.

The characteristic of Futian Free Trade Zone is that it has an entry and exit channel (Channel 1) leading to Lok Ma Chau in Hong Kong and an entry and exit channel (Channel 2) leading to Shenzhen City. The goods entering and leaving the country only need to be registered with the customs, while the goods entering and leaving the country need to be declared. Customers can take advantage of the policy advantages within and outside the bonded area to achieve delayed tax benefits for bulk entry and batch entry, or conversely, the benefits of early tax refund.

Summary and arrangement of problems:

Fubao SEG’s warehouses are mainly flat warehouses, and some warehouse areas use three-dimensional shelves. Pallets are used as the basic handling unit, and forklifts (and ground cattle) are used for transportation in and out of the warehouse and transportation within the warehouse. The first floor is the Yuesang area, with five gas-powered forklifts. The second to tenth floors are storage areas, with one or two electric forklifts (powered by batteries) on each floor. There are two large freight elevators going up and down. The platform where vehicles park is equipped with more than ten parking spaces, which can accommodate various types of transport vehicles such as container trucks and box trucks.

Fubao SEG is still an order-driven and business-centered warehousing service company. There has been no transformation to customer service focus. Driven by the company's management, all employees of the company have established the concept of total quality management and established a standardized quality document system in accordance with the requirements of the ISO9000 quality management system. However, the company has not yet formally applied for or passed ISO9000 quality system certification.

Solution:

Fubao SEG and its parent company SEG Storage and Transportation Co., Ltd. developed a management information system based on the C/S system in 1999. Later, due to It was abandoned due to inaccurate settlement, poor system flexibility, and inability to adapt to business changes. From the end of 2002 to the end of 2003, SEG Storage and Transportation Co., Ltd. cooperated with Saibon Software to develop a new, Web-based B/S system logistics management system, covering various aspects such as transportation business, warehousing business, and financial settlement. . This enables customers to place orders online, check order processing status, inventory status, bill details, etc. online, and achieve real-time settlement and scheduled settlement.

The problem faced by Fubao SEG is how to increase the return on assets. The fixed assets of the bonded warehouse exceed 80 million, but the annual profit is less than 5 million. Compared with the transportation business (the fixed assets of container vehicles are only more than 10 million yuan, but the annual profit contribution reaches more than 20 million yuan), the return on assets is too low. Improve the morale of staff in the bonded warehouse area, strive to enhance service awareness, and focus on quality improvement; increase the proportion of logistics value-added services, significantly increase sources of income other than warehouse rental fees, win more high-quality customers with high profit contribution rates, and eliminate profit margins Low-level C customers are all possible solutions.

In order to enable the company to move up the ladder, improve the return on assets of the bonded warehouse, and pass ISO9000 certification at the appropriate time. Fubao SEG hopes to continuously improve its management process through internal implementation of total quality management, and assist the development of management through information technology. The ideas they considered are consistent with the views held by Deming, the quality management master we discussed earlier. First, they hope to establish a modern job training system and establish rigorous education and training plans. Then, through continuous training and process monitoring in the department, we can eliminate the barriers between internal departments, enhance the awareness of all employees to proactively serve customers, eliminate employees' fear of management, and dare to put forward their own opinions and opinions; Gradually eliminate factors that hinder the smooth work of grassroots employees, as well as quantitative assessment indicators; and through the active participation of senior leaders, form a management culture within the company that is recognized by all employees of Plan, Execute, Check, and Act (PDCA). Develop more high-end customers externally, establish a customer-centered awareness (strongly focusing on customer satisfaction), and put forward the slogan "to provide services before customers even think about it". Gain new competitive advantages through internal management process potential and high-quality value-added services to external customers.

Option 2:

Furi Logistics was officially put into operation in September 2001, with a registered capital of 50 million yuan. Furi Logistics owns the urban fast-moving consumer goods distribution warehouse in Hangzhou. It has built a 140,000-square-meter modern room-temperature platform warehouse on 300 acres of land rented next to Xiasha Road in Hangzhou City, and is building a larger 600-acre logistics park in Jiubao Town. Furi Logistics is already the East China headquarters for many fast-circulating consumer goods, and its influence and radius are still expanding.

Furi Logistics has introduced advanced Western third-party logistics business concepts and hired professional manager Wang Wei'an to successfully develop the surrounding logistics market with Hangzhou as the core. It has now become a third-party logistics enterprise in Hangzhou. one. The main customers of Furi Logistics include large household appliance manufacturers (Kelon, Little Swan, Electrolux, Shanghai Sharp, LG, Sanyo, etc.), alcohol manufacturers (several sub-brands of Wuliangye, Jinliufu, etc.), convenience food manufacturers Enterprises (such as Master Kong, Uni-President, etc.) and other fast-moving consumer goods manufacturers (Singapore Paper, Vinda Paper, etc.). Chain sales companies such as Gome Electrical Appliances and Yongle Home Appliances and supermarket chains such as China Resources Vanguard have also reached strategic cooperation relationships with Furi Logistics.

Furi Logistics’ business model is based on distribution and warehousing services. Manufacturers or large wholesalers store large quantities of goods in Furi Logistics' warehouses through trunk line transportation, and then use small trucks to deliver goods in small quantities to retail stores or consumer locations based on the sales demand of terminal stores. At present, Furi Logistics Company stores 250 million yuan of goods for each customer unit every day.

Recently, the company also expanded its warehousing capacity by 60,000 square meters, bringing the amount of goods stored every day to about 1 billion yuan. Based on three turnovers per month, the company's monthly logistics volume reaches about 3 billion yuan. Its general manager Wang Wei'an uses advanced management and business concepts to make Furi Logistics a leader in Zhejiang's modern logistics industry and even the Yangtze River Delta region. Dark Horse". Furi Logistics provides customers with logistics services such as warehousing, distribution, loading and unloading, processing, collection, and information consultation. The profit sources include warehouse rental fees, logistics distribution fees, circulation processing service fees, etc. The business process is as follows:

Furi Logistics’ warehouses are all flat warehouses. Some use pallets and forklifts for transportation within the warehouse. A small amount is handled manually. The platform design is very unique and is suitable for rapid loading and unloading of large container trucks, flatbed trucks, and small box distribution vehicles.

Different from the booming business development, the informatization of Furi Logistics has always been in a relatively primitive stage, with only a simple stand-alone order management system and mainly manual processing of documents. Based on Furi Logistics' current warehouse development trends and management capabilities, as well as the requirement to provide customers with more value-added services, its logistics information bottleneck has seriously restricted the business development of Furi Logistics. Until recently, it began to develop logistics information management systems that suit its own business characteristics.

Furi Logistics has formed a virtuous cycle in terms of business and customer sources. How to quickly expand the warehousing area, improve the processing capacity of delivery orders, and further enhance regional influence has become the focus of the decision-makers of Furi Logistics Company.

Furi Logistics has begun to pay close attention to customer needs and plans a variety of value-added services for customers, looking forward to developing from a typical warehousing distribution center to a third-party logistics enterprise. Moving from a simple operating mode to a new level of scientific management, the management of Furi Logistics began to realize that it was not enough to rely solely on the advanced ideas of the decision-makers. At this time, the management concept of total quality management was introduced and the ISO9000 quality management system was implemented. Ensure that managers and grassroots personnel at all levels can strictly follow the requirements of total quality management, and with the help of information systems, the management system of Furi Logistics can be raised to a scientific management level.

Case 3: The transit warehouse of the transportation branch of Lianchuang Development Corporation in Yiwu City, Zhejiang Province (ie: Lianfa Express).

Yiwu United Consignment Development Corporation is a company that integrates all consignment lines in Yiwu. Yiwu Consignment Development Corporation is a comprehensive enterprise integrating the development, operation and management of all consignment lines in Yiwu. The company only has management rights but no ownership rights over all shipping points of Yiwu City's out-of-province lines, nor does it own a fleet of out-of-province transportation vehicles. However, its subsidiary Lianfa Express directly operates the intra-provincial transportation business and has cargo delivery and receipt points in almost every county and city in Zhejiang Province to achieve fixed-point and timed delivery and receipt of goods. Lianfa Express can complete the delivery of goods between any two counties and cities in Zhejiang Province in no more than two days through its own transportation capacity. Goods sent to other provinces need to be transferred through Yiwu and handed over to the consignment points in Yiwu that directly reach more than 300 cities across the country to complete the entire transportation. Therefore, Lianfa Express has a transfer warehouse at its Yiwu headquarters to realize the transfer and distribution of goods between different transportation routes. Since the goods stay in the transit warehouse for a short period of time (usually only a few hours), there is basically no formal inventory management and in-warehouse management (such as more formal inventory counting and warehouse moving operations).

The warehouse also adopts a transparent design at both ends similar to a cross-dock area (Cross Decking), without detailed storage location division. Because the trucks that undertake cargo in Yiwu and run long-distance domestic trips are all non-container vehicles such as flatbed trucks. Pallets are generally not used as basic logistics units. Forklifts are basically not used, but manual handling is the main method. In terms of quality management, there are standardized operating procedures, but they are rough and not flexible and detailed enough. Too much emphasis is placed on low-cost competition and not on customer service. The implementation and implementation of the ISO9000 quality certification system have not yet been considered.

The management of Lianfa Express believes that the problem facing the company is that the business load cannot keep up with the transportation capacity. It is necessary to conduct in-depth exploration of supply sources and high-quality large customers.

The capacity resources that Lianfa Express currently possesses and can integrate have great potential. Specific measures include changing the past mentality of waiting for customers to come to your door, strengthening service awareness, reforming the personnel system of state-owned enterprises (Yiwu Lianchuang Development Corporation is a state-controlled enterprise).

Case 4: Warehousing and distribution (VMI) service of Taiwan Shiping International (WPI) Suzhou Branch.

With a large number of Taiwan-funded and foreign-funded enterprises stationed in Suzhou Industrial Park, Suzhou has formed a huge enterprise ecosystem for electronic components, chips, computers and computer accessories and other hardware products. There are many-to-many complex supply and marketing relationships between enterprises. In this field, there is a basic rule, that is, as leading companies move in, more and more upstream and downstream companies will be driven to settle in Suzhou. As a result, Suzhou's group advantages in the fields of IT hardware products and electronic components have become increasingly obvious.

These companies have special requirements for logistics services. The reason is that with the refinement of division of labor, these electronic products, components, raw materials and finished products are becoming increasingly diverse, the replacement cycle is short, and the unit value of goods is high. , Rapid turnaround. In order to reduce costs and reduce the occupation of funds by inventory as much as possible, manufacturing companies emphasize the principles of just-in-time (JIT) and zero inventory, requiring suppliers to provide small batches, multiple batches, and frequent supplies in conjunction with the production process.

In order to meet the above requirements, unified warehouse distribution (also known as: supplier inventory management, VMI) came into being. It is characterized by multiple suppliers renting a public warehouse at the same time to supply one or more manufacturing companies. When a manufacturing company purchases from multiple suppliers at one time, the orders can be processed in a unified manner, thereby achieving one-to-one monthly settlement between the manufacturing company and the suppliers while completing many-to-one centralized picking and combined order transportation. This greatly reduces overall transportation costs and transaction costs, meeting the just-in-time (JIT) needs of manufacturing companies.

Taiwan Shiping International Co., Ltd. is an IT channel/distributor in Taiwan. Following the existing partnership to meet the logistics needs of Taiwan-funded enterprises in Suzhou, we have launched logistics services in Suzhou with unified warehouses and integrated warehousing as the core.

Shiping International’s customers include a large number of Taiwan-funded enterprises such as BenQ Dentsu and Hi-Tech (Suzhou), as well as multinational giants such as Intel and AMD.

The public warehouse operated by Shiping International is a semi-automatic three-dimensional warehouse with pallets as storage units. Barcode scanning and reading technology is fully adopted for documents, storage locations and goods, and it has an automated auxiliary sorting system.

Shiping International has rigorous and meticulous business processes and warehouse management specifications, and conducts comprehensive quality management in strict accordance with the specifications in the ISO9000 quality management system. High degree of standardization and strong continuous improvement capabilities.

Shiping International applies the software products of a well-known foreign warehousing software company for information management. The relevant employees are already quite proficient in using the system.

The current problem facing the company is how to expand at low cost to further expand warehousing capabilities and improve the processing capabilities of the information system to cope with growing customer demand.