Choice of enterprise logistics mode

Enterprise logistics mode mainly includes self-operation logistics and outsourcing logistics. When making logistics decisions, enterprises should consider the following main factors comprehensively and choose logistics mode carefully according to their own needs and resource conditions.
(1) influence degree of logistics on enterprise success and enterprise management ability of logistics. If the importance of logistics to the success of enterprises is high and the ability of enterprises to deal with logistics is relatively low, then outsourcing logistics is adopted. If the importance of logistics to the success of enterprises is low, and the ability of enterprises to handle logistics is also low, then outsourcing logistics service: if the importance of logistics to the success of enterprises is high, and the ability of enterprises to handle logistics is also high, then self-logistics.
(2) enterprise's demand for logistics control. The more competitive the market is, the more enterprises need to strengthen the control of supply and distribution channels. At this time, enterprises should run their own logistics. Generally speaking, final product manufacturers have strong control over the channel or supply chain process, and often choose self-logistics, that is, as a leading enterprise to organize the whole process of logistics activities and develop logistics service standards.
(3) logistics characteristics of enterprise products. For the return of bulk industrial raw materials or distribution of fresh products, relatively fixed professional logistics service providers and short channel logistics should be used. Regional professional logistics companies should be used to support distribution in the global market. For enterprises with single product line, they should operate their own logistics under the unification of leading enterprises. For the highly technical logistics services, such as port logistics services, enterprises should adopt the way of principal agent; For manufacturers of non-standard equipment, self-operation, though profitable, should be left to professional logistics services.
(4) size and strength of the enterprise. Generally, large and medium-sized enterprises, due to their strong strength, are usually capable of establishing their own logistics systems, formulating appropriate logistics demand plans and guaranteeing the quality of logistics services. In addition, the surplus logistics network resources can be used to expand external business (to provide logistics services for other enterprises). However, small and medium-sized enterprises are limited by personnel, capital and management resources, so the efficiency of logistics management is difficult to improve. At this point, in order to use resources for the main core business, enterprises should hand over logistics management to the third-party professional logistics agency. For example, the powerful McDonald's company has to ship fresh food such as hamburgers to all parts of China every day. In order to ensure accurate and timely supply, it has established its own freight company.
(5) total cost of logistics system. When choosing between self-operation and logistics outsourcing, it is necessary to know the total cost of the two modes of logistics system. The calculation formula is as follows: total cost of logistics system = total transportation cost + inventory maintenance cost + bulk cost + total fixed storage cost + total variable storage cost + order processing and information cost + customer service fee. There is an antinomy between these costs: when the number of warehouses is reduced, the storage cost can be reduced, but the transportation cost will be increased due to the increase of transportation distance and times. If the increase of transportation cost exceeds the decrease of storage cost, the total logistics cost increases instead. Therefore, when selecting and designing logistics system, the total cost of logistics system should be demonstrated, and the least cost logistics system should be selected.
(6) customer service ability of outsourcing logistics. Although it is important to consider logistics cost when choosing logistics mode, outsourcing logistics is crucial to the ability of providing services for the enterprise and its customers. That is to say, outsourcing logistics should be considered as the primary factor in the ability and reliability to meet the timely demand of enterprises for raw materials, and the ability of outsourcing logistics providers to respond to the ever-changing needs of enterprises' retailers and final customers.
(7) the choice of outsourcing logistics of self-owned assets and non-self-owned assets. The third party of self-owned assets refers to the professional logistics company that has its own transport tools and warehouses and is engaged in actual logistics operation. They have a large scale, a strong customer base, in place systems. Third parties of self-owned assets are usually highly specialized, but their flexibility is often limited. Non self hold assets to a third party means that does not have hardware or just rent a small amount of assets, such as transportation, they are mainly engaged in the logistics system design, inventory management and logistics information management, and other functions, and the transportation and storage of goods, such as the specific operation activities shall be borne by the other logistics enterprise, but responsible for system operation of logistics management company. Such companies are often flexible, able to revise their services and mix and match their suppliers freely. Lower overhead costs. Enterprises should select and utilize the two modes according to their own requirements.