Where Is The Future Of The Logistics Manpower Cost Rising?

The decline of school-age labor force will increase the educational level of the population, and the labor cost will increase by degrees. The logistics industry is a labor-intensive industry, which is more affected. How should we deal with it?

According to data from the white paper 2018 of Chinese enterprise social security, 53% of respondents said their labor costs accounted for more than 30% of the total cost, and 16% of the respondents said their labor costs accounted for over 50%. Some labor-intensive enterprises in Japan and South Korea have gradually shifted their production base to Southeast Asian countries since 2008, because the labor cost there is only about 1/4 of that in China.

The logistics industry is also a labor-intensive industry, which is also affected by the rise in labor costs. According to the latest statistics of the National Bureau of statistics, in 2018, the average annual wage of the employed persons in the private sector of the urban sector was 50547 yuan / year, slightly higher than the national average of 49575 yuan / year, and its growth rate was faster than the national average. However, behind this is a higher labor intensity. Data show that the working hours of "express little brother" are generally longer. 48.9% of the "courier brothers" can only rest one day a week, and nearly half of the couriers work 10 hours to 12 hours a day, accounting for 21.4% of the total 12 hours a day.

Look at the truck driver again. Data show that drivers who drive more than 10 hours a day have reached over 2/3, accounting for 67.53%, of which drivers account for more than 1/3 of the drivers who travel for more than 12 hours, reaching 38.56%.

Data also show that employees in the field of procurement and supply chain pay an average increase of 15% in similar industries, and salary and welfare are the first factors to consider when measuring career opportunities. Therefore, it is basically not feasible to reduce labor costs by reducing salaries. We need to find other ways to deal with the rising cost of labor, and then release more profits from labor costs. Foreign capital enterprises can move out of China as a native private logistics enterprise. What should we do?

According to personal understanding, the author briefly summarizes the following four ways or means, for reference only.

Transfer of rising labor costs to Quotations

Under the environment of continuous demand from the shippers' enterprises, this method will certainly not be achieved through the direct increase in prices. The main way to achieve this is to increase customer satisfaction and stickiness through value-added services or differentiated services, in order to exchange value services for higher incomes and reduce the impact of labor costs.

For example, to help customers realize the VMI management mode of production materials, help customers reduce procurement costs, reduce the shortage rate, enhance response time, reduce the overall cost of the supply chain for customers, and get higher income from customers under the premise of reflecting their own service value.

Or it is investing in understanding customer needs, developing solutions, developing good relationships with customers, and integrating all kinds of internal and external resources to form a comprehensive integrated solution to provide customized services that meet their individual needs. And no longer a relationship based sales, because this dependence on personal relations, human relations business relationship is not reliable, when the other party changes in the relevant personnel, will affect the follow-up cooperation, and will often fall into the mire of price struggle; sales personnel can not just positioning themselves to accompany good customers, so that customers happy. More consideration should be given to how to tap customer needs, how to help customers solve problems, and obtain comprehensive service solutions through comprehensive solutions.

Using technology to improve efficiency and efficiency in order to reduce costs

In the past, logistics enterprises generally relied on paper documents, Excel documents and mail delivery to realize the operation management of goods circulation. In most cases, manual management was needed, especially in warehouse management, which was more dependent on people. In this mode, information is scattered, which is not conducive to the sharing and integration of information, and is inefficient. On the other hand, man-made uncertainties cause more errors, and there are more cases of cargo loss. In order to deal with this problem, logistics enterprises have increased their investment in logistics technology or logistics equipment, reduced their dependence on people, and improved their efficiency and efficiency in order to reduce the total cost of employment.

For example, in the sorting and distribution process of express delivery, labor costs are often high and labor costs are high and inefficient. In the cost structure of distribution centers, the human resources directly involved in sorting operations account for about 45%, and it is also known that warehousing sorting personnel have to bend 3000 times a day in the left and right sides, because their physical energy consumption is more, and their efficiency decreases after 4 hours of general work. In order to solve this problem, Jingdong logistics and Suning logistics began to try out the application of exoskeleton robot for auxiliary sorting and handling, which can extend the efficient working hours of employees to 8 hours or more, and improve output efficiency.

Shentong, rhyda and other enterprises also increase investment in transport vehicles, automatic sorting equipment and so on. The volume of per capita work is expected to further improve, thereby reducing the disturbance of human cost rising to the future performance. For example, Shen Tong has gradually carried out automatic sorting equipment including sorting robot, automatic scanning, automatic weighing and automatic bubble counting in Zhejiang Yiwu, Shandong Linyi and Henan Zhengzhou. It is estimated that the labor cost of using automatic equipment will be reduced by about 70%.

Model innovation increases per capita output to offset the increase in costs.

With the promotion and development of mobile Internet, mobile payment and Rural Revitalization Strategy, the low line town with large consumer groups has become the blue ocean market favored by many brands. Logistics enterprises are also facing the trend of development and the demand of shippers' enterprises, putting more resources into the construction and upgrading of low level urban logistics network. However, due to the scattered outlets and unbalanced cargo volume, the logistics cost of the low level cities is still high and the efficiency is low. This requires us to seek innovation in the form of technology and capital investment and effectively increase per capita output to offset the increase in costs.

For example, the recently exposed stream bird logistics is based on the county logistics market. Through systematic and technical means, business model innovation is taken as a breakthrough, and a courier joint distribution platform for three or four line cities is created to optimize the delivery cost of the express delivery industry. At the same time, it is closely cooperating with Alibaba group business, providing a solution for the county agricultural products enterprises based on warehousing and distribution package supply chain.

Simply speaking, the newly established stream bird logistics will open up the joint distribution of the terminal outlets of the county logistics in the future. A distribution worker can simultaneously send couriers to different express companies. The courier companies do not need to repeat the construction sites. They share the labor force, on the one hand, reduce the number of employees, and on the other hand, increase the per capita order density of the distribution staff, that is, per capita output.

Appropriately increasing the proportion of flexible employment, so as to realize the "asset capitalization" of staff structure.

Flexible employment mainly refers to the employment mode of providing flexible employment for enterprises in the form of job outsourcing, so as to solve the sudden increase, rush hour and seasonal personnel demand, and change the demand and reduce the risk and cost of employment. Adopting flexible employment mode can help enterprises reduce the number of formal employees, reduce the average labor risk by 50% and increase the flexibility of work by 30%. Moreover, it can save labor costs for enterprises, because enterprises only pay the salaries of employees within the duration of their tasks, and are paid by the number of days / days of actual work. Moreover, compared with labor dispatch, flexible tools are not limited to the length of labor contracts, employees' management responsibilities are undertaken by human resources service enterprises, employees' positions are not restricted, and so on, and will be gradually favored by business managers in the future.

Source: China National People's Congress, WEC, HRoot, Anxin Securities Research Center.

In the field of flexible employment, there are currently 3 main modes that are more suitable for logistics enterprises:

First, the project system, in response to short-term, specific project needs, to meet its temporary employment needs, for example, a logistics enterprise receives a logistics network planning consultation project, in order to enhance the team's advisory service ability, the client service company temporarily recruited 2 experts consultants with such experience.

Two is job outsourcing. We should directly outsource basic jobs such as customer service, operation and general sales to people's clothing enterprises, because these posts do not have high requirements or special preferences for the professional ability, experience, education and age of the employees. Only after short-term training can they be employed and completed corresponding work. A large part of the cyclists delivered by the US mission has adopted the mode of post outsourcing. The third party distribution team has signed contracts with the US group to take out the contract to provide the corresponding riders' labor.

The three is to get labor through crowdsourcing platform. Logistics enterprises can publish relevant service demand orders through the Internet platform such as pig's eight quit nets, good living network and other services crowdsourcing. After receiving the order and executing the employment, the employer will pay commissions to the eligible employees. Crowdsourcing platform provides a bridge for logistics enterprises to connect and communicate with a wide range of talents. The way of talent sharing helps logistics enterprises to support fewer people and realize the "asset capitalization" of staff structure.