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Case Study of Logistics: Thinking and Analysis of Haier's Entry into Logistics Industry
Nowadays, "logistics" has become a fashionable term in the society, and it is often mentioned by people, especially in the highly competitive home appliance industry in China, which puts logistics in an important position in the development of enterprises. Many home appliance manufacturers actively improve their logistics capabilities as an effective way to enhance their market competitiveness. Some enterprises have set up logistics subsidiaries or specialized logistics business departments to strengthen logistics strength and adapt to the increasingly diversified and personalized market demand, thus reducing the logistics operation cost of enterprises, improving the quality of logistics services and creating conditions for the further development of enterprises. As an influential home appliance manufacturer in China and even the world, Haier is no exception. Starting from 1999, Haier began to develop its own logistics capabilities and set up a special logistics promotion headquarters. In just a few years, it has made remarkable achievements, and also started the golden signboard of Haier Logistics, created a reputation, established the banner of Haier Logistics in the logistics field of China, and played a positive role in the development of enterprises.

In 1960s, the main factor of competition among enterprises was cost. In 1970s, the main factor of competition was quality; After 80s, the main factor of competition became time. The factors mentioned here mainly refer to the delivery time and response cycle. Users not only require manufacturers to deliver goods on time, but also require shorter and shorter delivery time, which puts higher and higher demands on manufacturing enterprises. Generally speaking, the logistics business of manufacturing enterprises should be done by themselves or by a professional third-party logistics company.

Although Haier put forward the industrial direction of "from manufacturing to service" in the idea of "three shifts", Haier is still a manufacturing enterprise at present, so it is impossible for Haier to outsource all its production and distribution like some foreign multinational companies. If Haier also outsources its own production, it will save a lot of logistics investment, such as warehouses, three-dimensional warehouses, various logistics node facilities established by Haier for the smooth operation of its entire logistics system, and the modern logistics information platform with efficient logistics network of the company, which also needs to invest a lot of manpower, material resources and financial resources in the usual actual operation. This kind of investment is quite huge. Then, why doesn't Haier cooperate with professional logistics companies like manufacturers in developed countries, and logistics companies cooperate to undertake logistics services? Generally speaking, there are the following reasons:

1, the third-party logistics in China is still immature.

Whether it is the third-party logistics or the fourth-party logistics, it will take some time to develop in China. The logistics in China has only become hot in recent years. It is not long before social clubs attach importance to logistics and increase investment in this area, and a complete service system cannot be formed. Haier, a large enterprise with international business as its strategic policy, has no time and can't wait until the third-party logistics develops to carry out logistics business, so it is inevitable or out of helplessness to do logistics by itself.

2. A certain degree of logistics outsourcing.

Whether it is traditional logistics or systematic logistics operation under modern supply chain conditions, logistics outsourcing is always limited. We can't think that logistics outsourcing is omnipotent. There are always parts that can be outsourced and parts that cannot be outsourced to others. If logistics extends indefinitely, it will involve the business secrets of enterprises. For example, from the procurement plan, we can learn the business secrets of the enterprise, such as production and operation plan, new product development and so on. Especially in China's current credit system is not perfect, business secret information in the production and operation of enterprises can not be easily told to partners, which is a major event related to the survival of enterprises. Haier's logistics starts from the source and procurement. Therefore, for commercial reasons, Haier's own logistics is understandable.

3. No company can meet Haier's requirements for logistics services.

External logistics can be outsourced, but can internal logistics be outsourced? Obviously, it is unrealistic under the current conditions. First of all, no enterprise has the ability to do logistics for Haier. Take the international procurement used in the international market as an example. Due to the foreign trade and foreign exchange system, intermediate links will inevitably produce tariffs, which will occupy more funds and increase costs. Even if not, domestic suppliers can independently complete international procurement and logistics, and enterprises that can trade online are rare. It is true that Haier, as a manufacturing enterprise, should outsource its logistics business to a third-party logistics enterprise and implement professional cooperation and management. But in fact, it is very likely that no enterprise can or is willing to undertake the logistics required by Haier. Why do you say that? Look at the logistics facilities built by Haier. Only the automated three-dimensional library invested by Haier is unique in China. No domestic enterprise can provide logistics services for Haier according to Haier's standards.

Haier needs to develop its own logistics.

Large enterprises in China are different from well-known foreign enterprises localized in China. Enterprises in developed countries have talents and experience in logistics, and some domestic logistics enterprises (such as Baogong Logistics) have developed under the professors of large foreign multinational companies. And domestic enterprises including Haier are no exception. Before developing logistics, they had no logistics talents and experience. If Haier doesn't do logistics by itself, then Haier's logistics, like many enterprises in China, will stay in concept, and will not cultivate talents and accumulate experience, whether it is internal logistics or external logistics. As a product, service or solution, procurement logistics is no different from other things. As buyers or users, enterprises must first really understand logistics. If Haier's logistics only stays in the oral and written form of enterprise leaders, then other enterprises in society can provide logistics services for it, and Haier has no ability to buy and enjoy it.

Now, the consumer demand of the market is developing in the direction of personalization and diversification. In order to adapt to this consumption trend, it is very important for enterprises to establish a fast and flexible production model. The timely supply of raw materials and the timely delivery of finished products to consumers have become very important links, which are related to the fate of enterprises. In order to adapt to this change in consumer demand, Haier has been carrying out business process reengineering, and it is necessary to handle the business from the perspective of service industry, organize the production and operation activities of enterprises, and produce according to orders. If Haier continues to expand its scale, sticks to the previous logistics operation mode, does not establish Haier's logistics system with modern logistics concepts, and integrates the logistics resources of enterprises and even society on this basis, it will inevitably affect its logistics operation efficiency and ultimately affect its development.

So, can Haier succeed in logistics on its own? Of course, we can't draw an eternal conclusion on this issue for the time being. We should judge it according to the contribution of Haier Logistics to the enterprise in actual operation, and the test of time is the ultimate standard. However, in Haier, strengthening enterprise logistics operation is successful and has a positive effect. As far as procurement is concerned, before the integration, all business divisions purchased by themselves. After the establishment of the logistics department, the unified procurement of the group was implemented. The direct effect is to reduce the group's external procurement cost, and the indirect effect is that the preferred procurement brings the overall improvement of parts quality and reduces the inventory. Among them, the storage area of spare parts warehouse decreased by 320 thousand square meters, which is equivalent to reducing the area of 43 football fields; Reduce the cost of warehouse rental by more than 52 million yuan every year. At the same time, the number of raw material suppliers of enterprises has decreased from more than 2,200 in198 to less than 900 in199, and the proportion of international suppliers is 71.3%-more than 50 of them are Fortune 500 enterprises. At the same time, the turnover rate of the Group's current assets was accelerated, from 1 18 days in 1999 to 9/kloc-0 days in 2000 and 79 days in 2006, which achieved remarkable results.

There are various reasons for Haier to do logistics, just as the logistics resources provided by the external environment mentioned above cannot meet Haier's requirements at once, but there are many other factors that affect Haier's decision on this issue. Here, let's do a SWOT analysis of sea to see the development trend of Haier in the field of logistics.

SWOT Analysis of Haier's Entry into Logistics Industry

Advantages:

1, Haier's brand effect

2. There is a relatively complete network in China.

3. Haier's logistics business is very large.

The enterprise has strong financial strength.

5. Cost reduction brought by scale advantage.

6. Successful operation experience of enterprise management

Disadvantages:

1, entering a brand-new industry, with huge initial investment.

2. The old operation process of enterprises is not conducive to the operation of logistics business under the new situation.

Opportunities:

1. At present, China's logistics industry is still immature, with huge development space, which is easy to form new profit growth points for enterprises.

2. With the gradual recovery of commercial capital, mastering circulation has become the key for enterprises to control the market.

3. Strengthening Haier's brand with logistics can strengthen the competitiveness and position of enterprises in the field of household appliances.

4. Develop logistics with the company's internationalization strategy as the goal, and create conditions for further strategic implementation of enterprises.

5. Strong support and preferential policies of relevant state units:

6. At present, China's logistics industry is still immature, with huge development space, which is easy to form new profit growth points for enterprises.

7. With the gradual recovery of commercial capital, mastering circulation becomes the key for enterprises to control the market.

8. Strengthening Haier's brand with logistics can strengthen the competitiveness and position of enterprises in the field of household appliances.

9. Develop logistics with the company's internationalization strategy as the goal, and create conditions for enterprises to further implement the strategy with the strong support and preferential policies of relevant state units.

10, relying on the favorable conditions of large well-known enterprises, actively introduce professional logistics talents, give them full play space, and accelerate the development of enterprise logistics.

12, set up a special logistics department or Haier logistics subsidiary, implement logistics operation, establish a perfect company system, and promote the logistics business to mature as soon as possible.

Threats:

1. While entering the China market, foreign home appliance manufacturers have also brought corresponding mature logistics services. Haier has just entered this field and it is very difficult.

2. The competition in home appliance industry is more and more fierce. Entering the logistics industry will inevitably lengthen the enterprise front and affect Haier's investment in the field of home appliances.

3. Cooperate with relevant foreign logistics enterprises, actively cultivate their own logistics characteristics, and establish their own brands with a high starting point and strict requirements.

4. First of all, we should position our own logistics business, avoid being too scattered, focus on breaking through logistics business and focusing on training.

From the above analysis, it can be seen that entering the logistics industry has become an effective way for Haier to further develop and effectively expand the international market and enhance the market competitiveness of enterprises. Facing the crazy price reduction of home appliance manufacturers, the profit rate of home appliance manufacturers is about to drop to the extreme. If enterprises want to develop, they must have ways to increase profits and find new economic growth points. Enterprises want to increase profits, which is nothing more than increasing sales, that is to say, earning more; Either reduce expenses or save a little to reduce costs. In the fierce competition, it is not easy to greatly increase sales, and the related expenses will increase a lot compared with the initial stage. This is the so-called law of diminishing marginal effect. In the long run, with the gradual maturity of China market, the marketing strategies such as advertising and price war adopted by enterprises will become fairy tales step by step, and the operating costs of enterprises will become the focus of competition. Moreover, the cost is entirely the internal affairs of the enterprise itself, and the source and provenance are clear and can be controlled; However, sales are faced with an uncertain market terminal, which enterprises can't control, so it is relatively easier to reduce costs and become the first choice for enterprises. Therefore, we should pay attention to logistics and enter logistics.

Our society is in the stage of development and perfection in the direction of market economy, and the brand caused by planned economy for a long time cannot be erased at once. Traditionally, China is a country that emphasizes production over circulation. For a long time, China has been in the seller's market, and it has only been transferred from the seller's market to the buyer's market in recent years, but the focus of the whole society is still in the production field. The neglect of circulation leads to the high cost of logistics in China. After enterprises gradually realize this problem, they must increase their investment in this area and start from themselves. Since they are aware of this problem, they should make efforts to improve and rationalize their business operations.

In short, Haier has made great strides into the logistics industry, and it has done quite well, benefiting from the upsurge of national logistics development. Under the general environment of vigorously promoting the development of logistics in China, Haier logistics came into being in line with the pulse of the times. Any enterprise constantly adjusts its business policies and strategies for certain business objectives, and Haier enters the logistics industry for its own needs. Doing a good job in logistics has enabled Haier to expand the business scope of the enterprise, and the various fields involved in the enterprise have set off against each other and become an interconnected whole, which has promoted the overall development of the whole group. We have reason to believe that Haier's household appliances will be better tomorrow, and Haier's logistics will develop faster, become a representative logistics enterprise in China, further promote the implementation of Haier's internationalization strategy, go global and March into the world's top 500.