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How does German logistics manage the supply chain precisely?

Data: 2017-09-27
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How does German logistics manage the supply chain precisely?

(1) enterprises are beginning to realize the importance.

In the German academic field, supply chain management generally refers to the process optimization of products from planning, supplier selection, procurement, production, transportation and distribution to buyback. Logistics is a link in supply chain management. Supply chain management involves most of the value chain of commodities, which goes beyond the industry and requires all participants to work closely together. The advantage of implementing supply chain management is to reduce purchasing cost, shorten delivery time, reduce product inventory, improve supplier loyalty and service level.

The logistics management of German enterprises has experienced the following stages:

In the 1970s (traditional logistics, the goal is to optimize the functions of each link) : procurement -- transportation, transportation, warehousing -- production -- transportation, transportation, warehousing -- sales;

In the 1980s (horizontal cross logistics, the goal was to optimize order) : procurement -- traditional logistics -- production -- traditional logistics -- marketing -- customers;

1990 s (value chain integration of logistics, the goal is to optimize the value chain) : the customer to single, research and development (subcontract supplier), purchasing (subcontract supplier) - production (subcontract supplier), distribution (subcontract supplier), recovery (subcontract supplier) - customers;

The 21st century (integrated logistics of global value chain, the goal is to establish and optimize the global network).

According to the survey, 81 percent of German companies believe that implementing supply chain management will improve their competitiveness. But just more than 20% of the companies set up supply chain management effectively, because 95% of German companies for small and medium-sized enterprises, large enterprises and large-scale medium-sized enterprises on the supply chain management is seriously, and small business is limited by its size, strength basically did not establish the supply chain management. It is also estimated that 37-39 per cent of large companies in Germany do not yet have strategic supply chains.

The total cost of supply chain management in Germany accounts for 7% of business turnover. The profit margins of companies implementing supply chain management are twice as high as those that are not. The average profit margin of a standard product manufacturer that implements supply chain management is 11%, and the average profit margin of the manufacturer of personalized products is 9%.

In general, German enterprises, compared with the powerful countries such as the United States, are mainly small and medium-sized enterprises that have an acceptable process in practice for the new things of supply chain management.

(2) the main practice of supply chain management enterprises.

1. SCOR model

The supply chain management enterprises in Germany are mainly large enterprises, which have their own complete supply chain and manage their own integration. The supply chain generally adopts the SCOR model. The SCOR model is recommended by the American supply management association to optimize the current supply chain. It goes beyond the boundaries of enterprises and departments, pays attention to the upstream and downstream partnerships of the supply chain, and focuses on the strategic connection and efficient operation of related enterprises.

2. Contract logistics mode.

The German contract logistics (Kontraktlogistik), known as the third party logistics (3pl), is similar to the "li feng model" in Hong Kong from the perspective of contract execution. In short, contract logistics is the mode that the manufacturer or retailer signs a long-term contract with the logistics enterprise to outsource the whole logistics process.

The contract logistics mode is more popular in Germany, especially in the supply chain management of export-oriented enterprises. According to Kompass enterprise website incomplete statistics, Germany has more than 700 contract logistics, which not only has deutsche post DHL, deutsche bahn Schenker, Kuhne&Nagel, Dachser and Fiege such big company, also have Grieshaber and Karldischinger such small and medium-sized enterprises. These enterprises generally 3 to 5 years of contract with customer, from product planning stage start more deeply into the customer's product value chain, through their own professional services for clients to create greater value. German contract logistics companies are active in automotive, textile, food and frozen products and pharmaceutical industries. In 2008, the market size of German enterprise supply chain management was 81 billion euros, of which nearly 30% adopted the contract logistics mode.

It is worth noting that the outsourcing trend of supply chain management in German enterprises has slowed significantly. It peaked in 2005, and many companies have outsourced the entire supply chain. But according to a study by the German industry federation, the overall outsourcing of supply chain management did not increase in 2010, and some large enterprises retook the supply chain management part back into the enterprise.

(3) the state does not support measures.

Germany is a typical market economy, with less government intervention in economic life except in exceptional circumstances, such as the economic crisis. Specific to the supply chain management enterprise industry, the German government has no direct concrete support measures.

Ii. Suggestions on developing supply chain management foreign trade enterprises.

As the largest manufacturing country in the world, we cannot always rely on the demographic dividend to lower the cost of labor. Moreover, China's foreign trade environment is becoming more and more difficult, and there is an increasing number of cases against China, and it is spreading from developed countries to developing countries. Our manufacturing enterprises need to improve their industrial structure and strive to occupy the two high end of GVCS, namely research and development and sales. We will strive to develop and promote enterprise supply chain management and supply chain management enterprises. Competition in the 21st century may no longer be about competition between companies, but between supply chains. The trend now is that as globalisation deepens, companies are stepping up their strategic alliances. We can consider:

Large enterprises should strive to optimize their supply chains.

Chinese companies are getting out. To see that with the rapid development of China's economy, our large enterprises have been able to make global purchases. Our company must cultivate the world's vision, not just to meet the order - production - export model. The former "two out" processing mode is the appropriate mode under the conditions at that time, but only the lowest part of the value chain can not meet the needs of the industrial upgrading of foreign trade enterprises. Big business needs to be around the world.

We will strengthen research on supply chain links such as procurement, supplier selection, transportation and distribution, as well as foreign distributors, and strive to integrate resources to create transnational enterprises. Postal, railway, aviation, etc have natural advantages of large transportation enterprises to rely on their own advantages, to build their own supply chain management service department or unit, a good third-party logistics providers.

(2) small and medium-sized enterprises should strive to integrate into the global supply chain.

For small and medium-sized enterprises, limited by their own strength, the most realistic approach should be to identify the market positioning and become a part of the supply chain of local large enterprises or foreign enterprises. To secure a long-term stable contract to ensure that the enterprise obtains the basis for planning future development.

Third, we need to focus our efforts on sustainable development.

Sustainable development has become a worldwide topic. In order to maintain their image, multinational enterprises pay close attention to environmental protection and energy conservation and emission reduction. Whether to obtain a green certificate has become a necessary audit condition for multinational enterprises to select suppliers. Our enterprise must pay attention to and strive to become an environment-friendly enterprise.

Key word: supply chain.


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