Manufacturing Industry And Logistics Industry Need Risk Sharing.

From the fuel price of high fever to the implementation of the new labor contract law (hereinafter referred to as the "labor law"), from the issue of RMB appreciation to the tightening of the central bank's monetary policy and the raising of the loan threshold...

Market shock waves hit one after another.

How does the manufacturing and logistics industry link up and develop as a supply chain?

During the two sessions of the National People's Congress at the beginning of this year, Premier Wen Jiabao answered the questions raised by Chinese and foreign journalists. "This year is probably the most difficult year for China's economy," he said with concern. "The two industry" is very difficult.

Although the alarm bell for economic development has been heard, in the face of the changing market situation, the logistics industry as a basic service industry and the manufacturing industry of the backbone of the national economy should still be unable to cope with it.

In the past 08 years, the price of fuel has increased greatly, and logistics enterprises have no idea. The pressure of pportation cost has become the biggest survival pressure: some highway logistics enterprises have increased about 40% of their operating costs, others have to run at a loss at the expense of survival, and some have to close their businesses.

In order to promote China's pformation of the mode of economic development, the labor law was promulgated and implemented at the beginning of this year.

Although the new law standardizes the employment system of the logistics industry, it guarantees the legitimate rights and interests of the workers, but it also inevitably increases the labor cost of the logistics enterprises.

In the field of logistics such as express delivery and distribution, quite a few enterprises used to employ temporary workers, did not sign labor contracts, did not deliver insurance for employees, etc., and the new labor law put forward strict requirements in terms of labor contracts and insurance. In the field of dangerous goods logistics, many enterprises have not yet established occupational disease protection mechanisms, and even some workers have been dismissed after being discovered occupational diseases.

However, the new law stipulates that the employer must undergo a health examination if the employee contract expires.

For the extensive logistics enterprises in the past, if the price of oil and manpower has been overburdened by them, then the central bank will tighten up and raise the threshold of loans, so that some small and medium-sized logistics enterprises will not be able to catch up with the straws.

As a light asset and heavy service logistics industry, many SMEs have no money to lend.

And the crisis is also hitting the main battleground of logistics services, the manufacturing industry.

The Chinese manufacturing industry represented by the Pearl River Delta has had the world's amazing "made in Shenzhen" and "Shenzhen speed".

Today, the Pearl River Delta is the world's largest regional production base. Its toys, shoemaking, clothing and other small and medium-sized manufacturing enterprises are nearly collapsed due to the high cost of raw materials, pportation costs and human costs.

Take shoe enterprises as an example. In the 1-5 months of 2008, there were 2428 footwear export enterprises in the Pearl River Delta region, a sharp decrease of 2331 over the same period last year. Nearly half of the PRD footwear export enterprises have no export performance this year.

In the month of 1-5, 940 million pairs of shoes exported to the Pearl River Delta region were 25.7% lower than the same period last year.

Advocating "risk sharing", how can China's logistics industry and manufacturing industry get rid of market risks?

How to ensure sound development?

There are three "ninety percent" in the manufacturing industry: a manufacturing enterprise, the time of pure production only accounts for 10% of the total time of the whole production process, and a variety of logistics time accounts for 90%; an industrial product, the production cost is only 10%, and the cost of purchasing and logistics accounts for 90%; an industrial product makes up only 10% of the total profit, and the logistics and sales profit account for 90% of the profit.

These three "ninety percent" actually tell us the relationship between modern manufacturing industry and modern logistics industry, and the two industries are closely related.

Leaving modern manufacturing industry, the development of modern logistics industry may be "anhydrous goldfish"; on the contrary, the modern manufacturing industry is also like "no wheel chariot" without the support of modern logistics industry.

The two industry needs to develop in the process of opening up the market.

At present, China's total industrial logistics accounts for about 90% of the total social logistics in the country.

As a manufacturing power and the center of the global manufacturing industry, China's modern logistics service plays a key role in supporting it.

In 2007, the national development and Reform Commission (NDRC) advocated the "joint development of logistics and manufacturing industry" and was actively responded to by the "two industries".

Today, when the two industries are faced with risks of development, we believe that the "two industry" needs to be shared by risks.

First of all, "two industries" to achieve shared risks is a major test of the industrial culture of the two industries.

Healthy industrial culture is the foundation of evergreen industry.

The traditional Confucian culture in China has always paid attention to "making money and making money".

This "harmony" has the meaning of harmony, and has the meaning of more resultant force, that is, in times of crisis, we can work together with one heart and one mind.

"One side is difficult and eight sides support" is also a fine tradition of the Chinese nation.

This "harmony" spirit of commercial culture was vividly reflected in the southern snow disaster at the beginning of this year, and later the "5 12" earthquake, and the great floods in the south. Many manufacturing enterprises abandoned the interests of enterprises and made disaster relief products for the people in the disaster area day after night. Many pportation and logistics enterprises risked their lives and pported relief supplies day and night.

They have made outstanding contributions to the stability, development and harmony of the country's social and economic life.

Secondly, the two industry risk sharing is the situation needs.

When the danger is borne by only one person, it may be too heavy to bear. When the danger is shared by all, it may be insignificant.

If our logistics industry brings high oil price and high manpower cost and so on, only the logistics enterprises undertake, perhaps in many logistical enterprises going out of business or closing down, it will bring about the high logistics cost of manufacturing industry, even the production supply chain breaking, and even the whole economic and ecological environment deterioration. If our manufacturing industry can actively share the risks with the logistics industry, it will not only help the logistics industry to go through the crisis, but also upgrade the logistics supply chain and enhance the core competitiveness of the manufacturing industry in the process of upgrading the logistics industry.

The essence of risk sharing is win-win cooperation.

In a sense, any enterprise is going forward in the process of constantly resolving the crisis and expanding in the game of market risk.

In the face of adversity, the "two industry" can find its way out by resolving risks. When the "Rainbow" appears, the perfect enterprise management and operation mode formed in the risk will also win more business opportunities and more profit margins for the "two industry".

"Sharing" can achieve "two industries" risk sharing is not a mystery topic, but can really be implemented in the enterprise production, operation and service practice.

For manufacturing enterprises, modern logistics is an important part and foundation to enhance the core competitiveness of manufacturing enterprises and build a manufacturing industry chain.

Many manufacturing enterprises should attach importance to logistics function integration from the strategic point of view, implement process reengineering, separate outsourcing logistics business, and cooperate with logistics enterprises in depth.

Behind a competitive manufacturing enterprise, there must be one or several large logistics companies providing strong supply chain services for the continuous operation of their production chains.

In the face of industrial risks, manufacturing enterprises are not more concerned with logistics companies in terms of freight rates and so on. Instead, efforts should be made to comprehensively evaluate the supply chain and further optimize supply chain management.

In the past, the supply chain management of enterprises increased production efficiency by shortening the product manufacturing cycle, while shortening cycle was achieved by changing the mode of logistics and pportation, and less involved in other aspects, such as streamlining the operation process, making procurement management more orderly, and improving the efficiency of decision making and preplan approval.

Secondly, manufacturing enterprises should deepen the socialization of logistics, deepen the integration outsourcing of logistics services, change the lagging concept of "fat water does not flow outside the field", and provide the logistics enterprises with the integration of supply chain as far as possible. This provides survival and development space for logistics enterprises, and on the other hand, it also helps to provide the overall efficiency of the supply chain itself.

For logistics enterprises, we need to make efforts to realize risk sharing.

First of all, service is the essence of settling down. The logistics enterprises should constantly improve their service quality, change the idea of "price war" and avoid vicious competition.

We should actively enhance professional and integrated services to provide more value-added services for manufacturing enterprises.

In this regard, there are many successful cases in the world.

For example, in Germany, DHL has diversified cooperation with manufacturing enterprises and information enterprises such as PHILPS, IBM, Intel, SAP, deepening supply chain management, providing efficient and fast logistics services, and reducing market risks.

Secondly, logistics enterprises should constantly update logistics equipment, and analyze the fuel consumption of the entire supply chain of manufacturing, pportation and so on with manufacturing enterprises, and eliminate unnecessary energy consumption from the source.

Improve the operation of logistics equipment and energy efficiency in warehouse storage, or use alternative energy sources, effectively reduce the fuel consumption intensity in the supply chain, so as to achieve the overall logistics cost reduction.

In 2007, the global shipping and logistics giant Maersk shipping began to implement the warehouse pportation quality and energy efficiency (QUEST) program.

The scheme not only does not affect the quality of refrigerated pport service, but also reduces the energy consumption of refrigeration to 50%, so that the cargo owners can get high-quality cold chain logistics services.

Of course, there are still many difficulties and obstacles to realize the "two industry" risk sharing.

For example, can manufacturing industry deepen the socialization of logistics links?

Can logistics companies really change their concepts and upgrade Integrated Lean Services?

Who will coordinate the interest game in risk sharing?

How to change the policy barriers that affect the risk sharing of "two industries" and so on.

However, as long as the "two industries" can start from the overall situation of industrial development and improve their respective concepts and operation modes, as long as relevant government departments and industry organizations actively promote the landing of this concept, it will not become empty talk to realize the risk sharing of "two industries".