China's Automobile Logistics Development Prospects


I. Analysis of the status quo of China's automobile logistics development

(I) Rapid growth of China's auto logistics market

1. Rapidly developing automotive logistics market

With the further development of China's economic opening to the outside world, the scale of logistics market benefits has been expanded (in which the scale of logistics outsourcing market has reached RMB 60 billion, with an annual growth rate of more than 20%. The Fortune 500 companies in China have invested 90% in logistics outsourcing ). This is mainly due to the steady growth of the Chinese economy and the rapid expansion of car consumption. In 2003, the sales volume of cars in China exceeded 2 million units. In 2004, the output was 2.24 million units, and the 2005 major car manufacturers in China (Shanghai GM, Shanghai Volkswagen, FAW-Volkswagen, Dongfeng Nissan, Nanjing Fiat, Beijing Hyundai, Guangzhou Honda, etc. Dongfeng Shenlong, etc.) The cumulative planned production will reach more than 4 million vehicles, and China has now become the world's third largest consumer of automobiles, with the output of automobiles being the fourth largest in the world. According to relevant experts' predictions, the number of household cars in China will reach 14.66 million by 2010 and 72 million by 2020. The rapid development of the automobile industry will bring about double growth potential for China's automobile logistics, and more and more cars. Manufacturers tend to outsource the logistics business. The scope covers the entire vehicle logistics, inbound and aftermarket spare parts logistics, etc. In 2004, the price cuts and the entry of foreign companies prompted the trend of logistics outsourcing to become increasingly prominent. New models were frequently introduced to the market. The R&D cycle has been shortened, and the demand for parts and components logistics has grown rapidly. Take only the CKD imported parts of the vehicle as an example. In 2004, the total number of CKD imported and assembled vehicles was 292,700, an increase of 21.79% over 2003, and the growth rate exceeded this figure. The growth rate of sedan production in the same period is expected to maintain a rapid growth rate in 2005. The huge market attracts numerous logistics companies.

2. International auto logistics rushes to China's auto logistics market

December 10, 2003, Europe's largest automotive logistics service provider, Gefco signed a letter of intent for joint venture between China and Daejeon Group in China and established China's largest automotive logistics company. In May 2004, Mercedes-Benz began to operate in BLG, a German supporting logistics company. Beijing found a partnership for the parts and components transportation of the Mercedes-Benz sedan. On September 10th of the same year, international express delivery giant TNT announced in Shanghai that it will integrate its express delivery, logistics, and direct mail services into overall services. TNT China headquarters has moved from Beijing to Shanghai, and He competed on the China auto logistics stage.

The development process of China’s Hyundai Motor Logistics has entered the direction of vehicle logistics, component logistics, and parts and after-sales logistics. The company has formed a main and a two-fold logistics system. After-sales logistics is a heavy emphasis on the new pattern of modern automotive logistics.

(B) Reduce costs have become the focus of China's automotive logistics market

Internationally, the logistics development level of a country is generally measured by the proportion of logistics cost to GDP, and the lower the proportion, the more advanced it is. At present, China's logistics costs account for 21.3% of China's 2004 GDP, Japan 12%, and the United States only 9.9%. According to the statistics and analysis of the US logistics industry, the average asset return rate of logistics enterprises with transportation as the main factor is 8.3% (IRR), storage is 7.1%, and comprehensive service is 14.8%. The return on assets of most automobile logistics companies in China is about 1%. China's vehicle transportation cost is 3 times that of Europe or the United States, and the national air transport rate of transport vehicles is about 37%. Among them, the air transportation rate of vehicle transport companies is 37-40%, and there are problems such as waste of return air resources and high transportation costs. This means that China's auto logistics providers must further help customers reduce costs, and at the same time provide customers with more value-added services in order to win customer satisfaction, respect and trust, thus further enhance the competitiveness of enterprises.

(III) Low-cost strategy has become a major issue that needs to be solved in China's automobile logistics industry

The proportion of third-party logistics in the entire logistics market is 80% in Japan, 57% in the United States, and 18% in China. Therefore, the low degree of third-party logistics in China, huge waste, and high logistics costs have become a constraint in China. The main issues of the future development of automobile logistics industry. Therefore, the strategic thinking of China's auto logistics companies in reducing costs is to reduce inventory, optimize supply chain information management and control, reduce supply chain value-added components, reduce unnecessary costs, and minimize intermediate links. Through logistics network optimization and information technology system construction and management, helping customers to achieve zero inventory is the only way to reduce logistics costs. The second is to speed up the implementation of the global standardization system management. This is mainly reflected in the fact that China's auto logistics enterprises are mainly composed of four forms: 1 From the traditional state-owned transport enterprises involved in the logistics field such as warehousing, and from the separation of auto manufacturing companies 3 The units owning the land use the landlord's wishes in the warehouse Or logistics parks gradually involve other logistics businesses. 4 Automobile logistics enterprises of Sino-foreign joint ventures (eg: Anji Tiandi Automobile Logistics Co., Ltd., Anji Daily Post Motor Transport Co., Ltd., etc.). Generally speaking, the logistics services provided by domestic automobile logistics companies are limited to simple warehousing, the transportation links and service functions are relatively simple, and the management system is too extensive. There is a big gap between the basic management standards and the management system of foreign automobile logistics companies. In particular, the automotive logistics standardization system has lagged behind. The technical standards and basic management, service specifications, and transportation tools and equipment of auto logistics have not formed a unified standard. Once problems arise in the supply chain, they often seem to be at a loss and cause customer complaints. As a result, logistics companies have a low reputation, high costs, and a large risk of loss of the market. The logistics companies that the author is currently working on have severe lessons in this regard. Therefore, China's auto logistics enterprises must establish an effective standardization system platform. Integrating the laws and regulations system, basic technical standards, basic management standards system and work standard system into the supply chain management system is an effective way to improve the operational level and operational efficiency of logistics services. And through the mobilization of numerous manufacturers, logistics service providers, to achieve a positive interaction to reflect the value of supply chain and logistics management. The third is to further improve the quality of service. The global economic integration and the emerging emerging markets are forcing companies to sell more products globally while continuously searching for cheaper raw materials. The developed countries are shifting manufacturing to those with more low-cost countries, making the flow of goods more frequent, and thus accelerating the formation of supply chains in an all-round way has brought more business opportunities to China's auto logistics suppliers, and has also brought about higher requirement. More complex logistics needs and higher service quality requirements, so all Chinese modern logistics companies must completely abandon the traditional value of light business quality, truly establish the quality of supreme, always the first new value of the value of logistics services, or else China Hyundai Motor Logistics Co., Ltd. will not be able to continue to survive. Therefore, we must comprehensively improve service quality. Fourth, major measures to reduce the cost of automobile logistics. 1 Reduce waiting time, strengthen the teamwork of warehouses and transportation, and strengthen the gap between customers, dispatchers, and drivers. 2 to achieve the sharing of resources, the implementation of strategic alliances, to strengthen the matching of the return of goods, improve vehicle utilization. 3Improvement of driver salaries, improvement of the cost of benefits, digestion, promotion of lean production methods, implementation of driver job balance analysis, implementation of maintenance of transport equipment for all personnel, and improvement of labor productivity. 4 Accelerate the speed of warehouse receipt and establish a fast receipt process. 5 Simplify the quality handover process and speed up the process. 6 Change the logistics dispatch mode to reduce loading and unloading time, handover and acceptance. Avoid repeated inspections. 7 Layout optimization of warehouses, speed up storage throughput, turnover rate, and build a resource information sharing platform. 8 Implement a lot of training, actively introduce and train international automobile logistics talents, and accelerate the construction of logistics talents.

Second, the future development prospects of China's auto logistics

(I) Analysis of Competition in Auto Logistics Market at Home and Abroad

In 2005, China's automobile logistics business will be the most challenging year, and the market competition will become increasingly fierce. In March 2005, TNT Group, one of the world's largest automotive logistics service providers, announced that it will introduce its flagship logistics solution Matrix transportation management system to China to help TNT's customers and business partners improve logistics capabilities and efficiency. The system will focus on key technologies for automotive logistics. This means that TNT has begun to “share” GM’s logistics business in China.

In the domestic auto logistics market, China's auto logistics companies have faced a fierce competitive environment of international auto logistics. Example: Excel Excel Logistics is responsible for transporting Veston cargoes from Europe, North America and Asia to China, arranging all international freight forwarding, customs clearance and forwarding its cargo to its warehouses and factories in China, with competitive advantages in warehousing. Management, customers in China mainly for Veston.

Chenker Global Cargo has 23 offices in China, which not only provides customers with land, sea and air transportation services, but also provides integrated logistics solutions and global supply chain management for customers. The competitive advantage is mainly reflected in the international shipping network. The customer ships part of the SVW.

With the vigorous development of China's auto industry, the prospects of the automotive logistics market are particularly attractive, and domestic third-party auto logistics companies have also achieved considerable development. Among them, the representative is: Tomita-Japan Storage & Transportation (Guangzhou) Co., Ltd., the main customer is Guangzhou Honda, and the competitive advantage lies in information management technology and stable customers.

Chongqing Chang'an Minsheng Logistics and Ocean Shipping is supported by the President of the United States President Shipping Co., Ltd., which transports about 160,000 tons of cargo vehicles, auto parts, and raw materials. The main customer is Changan Automobile. Its competitive advantage is mainly reflected in management technology (advanced management experience and IT system in the United States), resource advantages (by changan, Wanyou Group to provide warehousing, road, rail transportation) and scale advantages.

Anda Group Co., Ltd. has a modern management warehouse of 450,000 square meters and annual throughput of 300,000 vehicles. More than 300 special vehicles for goods vehicles. The main customers are Tianjin FAW Xiali and Shenlong Automobile. The main competitive advantage is management technology (GPS Global Positioning System).

China Ocean Shipping Logistics Co., Ltd. is headquartered in Beijing and has signed long-term cooperation agreements with over 40 freight forwarders abroad. In China's 29 provinces, municipalities and autonomous regions to establish more than 300 business outlets, forming a fully functional logistics network system. The main customers are Hainan Mazda and FAW-Volkswagen. The competitive advantage is mainly reflected in scale, management technology, stable customer source and region.

Anji Tiandi Automobile Logistics Co., Ltd. is currently the largest Sino-foreign joint venture automobile logistics company in China. It is mainly engaged in automotive vehicle, parts logistics and related logistics planning, logistics technology consulting, planning, management, training and other services. It is a professional operation and can Provides customers with integrated, technological, networked, reliable and unique solutions for third-party logistics suppliers. Major customers include Shanghai Volkswagen, Shanghai GM, SAIC-GM-Wuling, Brilliance Jinbei, Chongqing Hongyan, etc., with a total of 1,639 transportation vehicles. Shuttles, 438 trains, 5 rivers, 6 seagoing vessels. In 2004, the company's annual transportation capacity has exceeded one million commodity vehicles, and its annual sales revenue has reached RMB 1.7 billion. The main competitive advantage is reflected in stable customer source and regional and advanced automotive logistics management technology is established in ISO9001: 2000. Integrated management system platform based on ISO/ISO14000:2004/OHSAS18000:1999 integrates basic technical standards, central dispatch system for multi-target customers, complete vehicle and parts information management system, GPS global positioning system, KPI operation system, and lean Six Sigma technology has formed a linkage platform for the management of vehicle and parts logistics operations.

In summary, from the analysis of the international automobile logistics service industry environment and the domestic automobile logistics service industry environment, it can be seen that automobile logistics service is a sunrise industry. In the next 3-5 years, the demand for automobile logistics business in China and even Asia will also be met. A stable and sustained growth trend. Multinational companies will shift more business to China and reduce supply chain costs through outsourcing logistics.

Domestic auto logistics companies have clearly realized that: China’s Hyundai Motor Logistics companies are in a fierce competitive environment for foreign auto logistics companies. In 2005, China’s auto parts and components will gradually go abroad, and will extend overseas services to develop international import and export logistics. At the same time, it is actively involved in the internationalization of logistics services engineering projects, more concerned about the company's own sustainable development and the cultivation of the company's core competitiveness, is the focus of China's modern automotive logistics entrepreneurs.



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