Industry Watch: Endangered? Will the logistics line disappear?

The logistics of the dedicated line carries more than 90% of the capacity of China's road transport. At present, the business of a large number of green lines is increasingly difficult to do, the cost is getting higher and higher, policy control is becoming more and more strict, and competition is getting fiercer. There is also a lot of disagreement as to whether or not the green line that everyone has been paying attention to will disappear in the industry. Some people think that the green line will disappear, others think that it will not disappear, and some people do not understand...

Development Status of Logistics Line

The biggest characteristic of a dedicated line is the point-to-point “direct” transport, with no allocation or transfer, which can save costs. Due to the fact that green logistics has many outlets in the region, the time it takes for the goods to travel is short, the price is cheaper than that of general logistics, and it takes a certain time to meet the more urgent cargoes. In the field of long-distance freight transport, the actual implementation of transport is dedicated.

However, when the current economy enters the winter period, changes in the owner groups and business structure, the entry of new modes of transport organization, and the current situation of supply and demand dissatisfaction are plaguing the logistics line.

"Business is not as good as one year!" Perhaps it is the sympathy of many logistics line owners. In recent years, due to higher and higher operating costs, increasingly stringent policy controls, and increasingly fierce competition, it has become increasingly difficult to do business in the logistics industry.

Why is the profit margin of the green line getting thinner and thinner? Is it a business operation issue? Where is the way out of the green line, and how can we find the law of self-help?

This is the worst time for the green line and the best time for the integrator. In order to cope with the increasingly fierce market competition, enterprises have to strengthen cooperation, set up special alliances, take the road of branding, and gradually become an important trend in the development of the logistics industry.

Intense competition and difficulty in logistics

The entry of new modes of transport organization, as well as the current situation of supply and demand dissatisfaction are plaguing the green line and have experienced brilliant logistics lines. Markets are scattered, individualized, and intensified. As a result, profits from logistics line transportation are becoming increasingly thin.

Some logistics bosses mentioned that business is difficult to do today. He believes that the market competition is too intense is the main reason. For example, "a batch of goods, I quoted 20,000, another 19,000, the third gave 18,000. After all, ten thousand is nothing to make money, but the owner must be looking for the third pull." If the price is not reduced, customers will all run away and tell the industry's helplessness.

In addition to the shock waves brought about by homogenous competition, line companies also have to bear the risk resistance that general B2C and B2B services cannot match. Under normal circumstances, logistics costs only account for 1% of the value of the goods. The transaction amount of both parties is only the logistics cost. The liability risk is the full value of the goods. This risk resistance is also a potential burden and cost.

Transformation and Upgrading to Solve "Small Disorders"

What is the image of a green company? It is estimated that the following scenes will emerge in the mind: a facade, a car, or a brother, or a husband and wife, or a father and son, capable of loading and unloading workers, a driver, and an employee. The boss is more often labeled as "scattered, small, chaotic, and bad."

Where are the outlets for logistics companies? The main reason for the current market confusion is that intensiveness is not strong, resources are scattered, and overall capacity is greater than demand. However, from the perspective of the owner, it is not easy to find a reliable, cost-acceptable, high-quality capacity company in a timely manner. Therefore, the real status quo is: the overall capacity is excessive, but the high-quality green logistics capacity is far from sufficient.

The year 2017 is the watershed of the special line companies. When the economic downturn is a good opportunity for the company, the successful transformation and upgrading of the company will usher in great development.

Transformation prescription

The external environment is constantly changing. The way to deal with it is to enhance its own quality, improve its hard work, and improve its own operation level. It can then develop towards third-party logistics, or transform itself into network-based LTL, professional transportation, and large fleets. Third-party logistics is a solution. It requires high professional standards. The development of dedicated lines in this direction will be subject to great risks. The relatively large-scale green companies can still try. Small and medium-sized logistics specialists can achieve successful transformation by focusing on the specialization of certain nodes in the service chain.

Informatization is a major trend in the development of the industry

To increase the utilization rate of dedicated line logistics vehicles, the timeliness of the entire green line transportation is the core direction for future development of dedicated line logistics. Full utilization of informatization will help to reduce the no-load line, promote the informatization management of business processes, and improve the status quo of the special-line logistics in the balance of price and interest. Specifically how to implement information technology?

The green logistics is generally not large scale, and it is sensitive to cost. Therefore, information upgrade needs low cost, quick results, and gradual progress. The informatization step is divided into three steps: By increasing the amount of goods sourced, improving the management level, and reducing expenses, it is helpful to “open source, cut costs, reduce costs, and increase efficiency” of dedicated logistics.

1. Business informationization

The special line logistics line was put on the Internet, allowing shipping companies to easily find through the network, not only saving various costs, but also making full use of the advantages of the rapid spread of the Internet, a wide range of audience; increase the volume of the logistics of the green logistics, bring direct benefits .

2. Informatization of internal management

The management of internal management such as invoicing, ticketing, goods circulation, and property analysis is managed through the system, making the operation more efficient, more transparent, and the process more standardized.

3. Informatization of transportation process

Intelligent monitoring of real-time position and trajectory of vehicles, improving vehicle efficiency, ensuring timeliness, and reducing costs.

Only sturdy companies have no market. The logistics line is full of ups and downs. How to deal with market changes and how to find your own direction? Only those companies with special logistics companies do not blindly pursue expansion and strive to improve their green logistics service capabilities and make high-quality green lines in order to settle themselves in a transformative environment.