《系统工程》课程教学资源（英文文献）Thinking and Exploring Road to Modern Logistics Development

Thinking and Exploring: Road to Modern LogisticsDevelopmentby Yu Haoyu

Thinking and Exploring: Road to Modern Logistics Development by Yu Haoyu

Logistics came manufacturing products.satisfactory.Inparticular,somelargeandand into being with and circulation of ismedium-sizeThirdPartylogisticenterprisesdeveloping with the improvement of marketmade slow progress in transforming fromeconomy.After manyyears'development,providing storage into providing services.international logistics has formed its operationExcept some logistic companies which havemechanism on the basis of market adjustment. strengthened their power as a whole, mostWith continuously increased investment into theenterprises still maintain their outdated operationconstruction of infrastructure inmode-providing traditional storage andtransportation. Being behind the time andcommunication, information, warehousing,package and commodity supply, etc, the logisticsincompatible with theapplication of informationnetwork has expanded gradually, and circulationnetwork in modern logistics, China's logisticsindustry has fallen behind that of developednetwork integratingurban-rural areaswithcorecity as a support has been set up.With economiccountries both in scale and technology problemsglobalization and rapid development ofin Following are the major this aspect.information technology, radical changes haveAviation Administration of Chinataken place in the fields of social production,respectively.Decentralized management resultedin ineffective performance, which greatlymaterialscirculation,trade,andmanagementmode. For the purpose of reducing materialsweakened the function of logistics industry as aconsumption and improving labor productivity,whole, and impeded its development. This typemodern logistics, which is deemed "the thirdof managing system badly restricted thesource of profit", has sprung up in the wholeintegration and programming of logisticsworld, successfully stimulating the growth ofresources in a rational and economical way incommodity economy.Thefollowing is mythe whole society, thus hindering the process olopinions on how to enhance China's modernlogistics socialization and further promotion andlogistic management, promote the developmentapplication of E-commerce.of modern logistics, reduce materialsB. Incomplete infrastructure and low-levelconsumption, and advance economicautomationperformance, etc.As a result of inadequate investment in theMain Problems in Logisticsconstruction of infrastructure,automation andAlthough China's logistics got off earlier,information network, China's traditionalthe speed of development was far fromlogistics enterprises remain in a low level

Logistics came manufacturing products, and into being with and circulation of is developing with the improvement of market economy. After many years' development, international logistics has formed its operation mechanism on the basis of market adjustment. With continuously increased investment into the construction of infrastructure in communication， information, warehousing, package and commodity supply, etc, the logistics network has expanded gradually, and circulation network integrating urban-rural areas with core city as a support has been set up. With economic globalization and rapid development of information technology, radical changes have taken place in the fields of social production, materials circulation, trade, and management mode. For the purpose of reducing materials consumption and improving labor productivity, modern logistics, which is deemed "the third source of profit", has sprung up in the whole world, successfully stimulating the growth of commodity economy. The following is my opinions on how to enhance China's modern logistic management, promote the development of modern logistics, reduce materials consumption, and advance economic performance, etc. Main Problems in Logistics Although China's logistics got off earlier, the speed of development was far from satisfactory. In particular, some large and medium-size Third Party logistic enterprises made slow progress in transforming from providing storage into providing services. Except some logistic companies which have strengthened their power as a whole, most enterprises still maintain their outdated operation mode-providing traditional storage and transportation. Being behind the time and incompatible with the application of information network in modern logistics, China's logistics industry has fallen behind that of developed countries both in scale and technology problems in Following are the major this aspect. Aviation Administration of China respectively. Decentralized management resulted in ineffective performance, which greatly weakened the function of logistics industry as a whole, and impeded its development. This type of managing system badly restricted the integration and programming of logistics resources in a rational and economical way in the whole society, thus hindering the process o1 logistics socialization and further promotion and application of E-commerce. B. Incomplete infrastructure and low- level automation As a result of inadequate investment in the construction of infrastructure， automation and information network，China's traditional logistics enterprises remain in a low level

center",as well asthedevelopmentof containerWithout automatic information network, stepssuch as warehousing, transportation and supplytransport are rather sluggish. Logisticsmainly rely on manual work, which are unableenterprises characterized by"large andto optimize management and distribute resourcescomprehensive"or"small but comprehensive"effectively.They can neither offer customersquite prevails. Less-specialization in thoseenough information to check, nor provide thementerprises has impacted their efficiency, andincreased operation costs, which has made itfollow-up services. Most logistics companiesdifficult to provide joint ventures and foreign-canhardlydelivergoodsatfixedtime,andevenfunded companies with comprehensivehave no inventory to provide frequently. Allthese phenomena led to low efficiency, highservices, and integrate social logistics andcost, poor management and poor performance inenterprise logistics.China's logistics industry, which accordinglyE. Shortage of professionals restrictinglogistics developmentcannot satisfy customer's demands, thusBecause of sluggish development inimpeding logistics development.C .Small scale and imperfect programming ofeducating and cultivating professional personnel,logistics enterprisespersons with logistics professional competenceespecially high-level professionals are far fromAt present, the scale of logistic companiesin China is rather small, and their management isadequate. Statistics show that only 10 collegesdecentralized. Every sector has its own system,and universities nationwide offer logisticsand lack of programming.Most logisticscourses, accounting for one percent of the total.companies undertake business in unitary way. InThis situation has restricted improvement ofcomparison,comprehensive logistics companieslogisticsindustryare very few. This situation undoubtedlyIntegration and coordination are vitaldecrease the industry's efficiency, increase itsimportant in futurecost, waste resources of some steps, thereforeIn recent years, foreign countries havelowering its overall performance andachieved much in logistics modernization, Chinacompetitive competencehas also begun to get off in the field. However,D.Less-specialization impacting performancelogistics modernization is a by-step process, andCurrently,China's logistics is lesscannot accomplished in an action. We shouldmodernized in transportation and warehousing,maximize our favorable factors and minimizethe construction of"logistics center"and "supplyunfavorable ones when competing with foreign

Without automatic information network，steps such as warehousing, transportation and supply mainly rely on manual work, which are unable to optimize management and distribute resources effectively. They can neither offer customers enough information to check, nor provide them follow一up services. Most logistics companies can hardly deliver goods at fixed time, and even have no inventory to provide frequently. All these phenomena led to low efficiency, high cost, poor management and poor performance in China's logistics industry, which accordingly cannot satisfy customer's demands，thus impeding logistics development. C .Small scale and imperfect programming of logistics enterprises At present, the scale of logistic companies in China is rather small, and their management is decentralized. Every sector has its own system, and lack of programming. Most logistics companies undertake business in unitary way. In comparison, comprehensive logistics companies are very few. This situation undoubtedly decrease the industry's efficiency, increase its cost, waste resources of some steps, therefore lowering its overall performance and competitive competence. D .Less-specialization impacting performance Currently, China's logistics is less modernized in transportation and warehousing, the construction of "logistics center" and "supply center", as well as the development of container transport are rather sluggish. Logistics enterprises characterized by "large and comprehensive" or "small but comprehensive" quite prevails. Less-specialization in those enterprises has impacted their efficiency, and increased operation costs, which has made it difficult to provide joint ventures and foreign￾funded companies with comprehensive services, and integrate social logistics and enterprise logistics. E. Shortage of professionals restricting logistics development Because of sluggish development in educating and cultivating professional personnel, persons with logistics professional competence especially high-level professionals are far from adequate. Statistics show that only 10 colleges and universities nationwide offer logistics courses, accounting for one percent of the total. This situation has restricted improvement of logistics industry. Integration and coordination are vital important in future In recent years, foreign countries have achieved much in logistics modernization; China has also begun to get off in the field. However, logistics modernization is a by-step process，and cannot accomplished in an action. We should maximize our favorable factors and minimize unfavorable ones when competing with foreign

transportation network linking railways,logistics enterprises.Torealizelogisticswaterways, highways and airlines in the wholemodernization, we should commence with aview to developing regional logistics groupcountry, having the upper hand in transit speed,companies andlogistics software,settingupcost control and management. Secondly,wecomputerized management system, buildingshould organize national commodity supplynetwork for transportation, storage and supply,center, providing services through chains. At thecultivating talented persons with abilities to usesame time we should try to develop socialhigh technology to manage enterprises, thussupply system to reduce operation cost.enhancing our overall strength in logistics.Thirdly, we should set up regionalAbiding by the principle of "taking customer'swarehousing group corporations and erect large-should demand as the priority task' graduallyscaled warehouses on major ports andenhance our competitiveness, in order to graspcommunication hubs, to meet increasingprecious opportunities after China's access tologistics requirement.Fourthly,we should set upWTO and improve China's logistics industry.information network to offer customers newtypeA. Establishing logistics group to strengthenof logistics information covering manufacturecompetitiveness worldwideinformationoftransportstorageand supply,asChina's entrance into WTO brought bothwell as technical consultation.opportunities and challenges to its own logisticsB. Improving model of management toindustry.Improvement of modern logistics hasupgrade logistics managementdrawn great attention of Chinese top leaders,In logistics management, the key point is thold out industrial protection, regional blockagewho stressed several times that it is important tospeed up modern logistics, and logistics shouldand monopoly activities, to ensure legitimatebecome a significant industry and a newinterests of both suppliers and customers.economic growth factor in China's economicGovernments at different levels should enhancedevelopment in new century.Now logistics hasregular supervision and administration onbeen a focus of attention by governmentallogistics market access. The conditionsdepartments and enterprises, and a spotlight forconcerning market access should be defined ininvestment. In order to stimulate the reform ofthe initial stage in averting market chaos.circulation system and the process of logisticsHowever, up to now there have not been definitemodernization, we should firstly establishrequirements for qualification of logisticslogistics group corporations to formenterprises, and logistic enterprises have to go

logistics enterprises. To realize logistics modernization, we should commence with a view to developing regional logistics group companies and logistics software, setting up computerized management system, building network for transportation, storage and supply, cultivating talented persons with abilities to use high technology to manage enterprises, thus enhancing our overall strength in logistics. Abiding by the principle of "taking customer's should demand as the priority task' gradually enhance our competitiveness, in order to grasp precious opportunities after China's access to WTO and improve China's logistics industry. A. Establishing logistics group to strengthen competitiveness worldwide China's entrance into WTO brought both opportunities and challenges to its own logistics industry. Improvement of modern logistics has drawn great attention of Chinese top leaders, who stressed several times that it is important to speed up modern logistics, and logistics should become a significant industry and a new economic growth factor in China's economic development in new century. Now logistics has been a focus of attention by governmental departments and enterprises, and a spotlight for investment. In order to stimulate the reform of circulation system and the process of logistics modernization, we should firstly establish logistics group corporations to form transportation network linking railways, waterways, highways and airlines in the whole country, having the upper hand in transit speed, cost control and management. Secondly, we should organize national commodity supply center, providing services through chains. At the same time we should try to develop social supply system to reduce operation cost. Thirdly, we should set up regional warehousing group corporations and erect large￾scaled warehouses on major ports and communication hubs, to meet increasing logistics requirement. Fourthly, we should set up information network to offer customers new type of logistics information covering manufacture information of transport storage and supply, as well as technical consultation. B. Improving model of management to upgrade logistics management In logistics management, the key point is t hold out industrial protection, regional blockage and monopoly activities, to ensure legitimate interests of both suppliers and customers. Governments at different levels should enhance regular supervision and administration on logistics market access. The conditions concerning market access should be defined in the initial stage in averting market chaos. However, up to now there have not been definite requirements for qualification of logistics enterprises, and logistic enterprises have to go

through tedious formalities to enter into. ForInfrastructure, management andexample, if the company wants to undertakeinformation are three pillars of modern logisticsBecause of managing structure, we have not settransport business, it needs to get permissions ofmanyadministrativedepartments governingup unified logistics information system in China.However, the rapid development ofwaterway transport, railway transport, airfreight, foreign trade, industrial and commercialtelecommunication has laid a solid foundationregistration, taxation, land resources publicfor the construction of logistics informationsystem, and application of computer in a widesecurity,Therefore,and customs respectivelythe Government should responsible for therange is one of the main features of realizingdesignate a department logistics, or establishlogistics modernization. We should pay specialefficient examining and approval system, to cutattention to the establishment of logisticoverlapped formalities and steps. As moderninformation system and stipulation of logisticslogistics involves almost all categories of goodstechnology standards. In developed countries,and materials, there exists a lot of supplying"logistics center"and"supply center"have beensteps and relative supervising departments. Thecomputerized, not only in aspects ofregular supervision on logistics enterpriseswarehousing and selection, but also of businessshould be taken by different departments basedundertaking, management, transportationcontrol, etc. Chinese large-scale supermarketon their respective functions, but thewithdrawal of the enterprises should be managedchains have been equipped with computerby only one department. So the Governmentmanaging system, and have realized nets linkageshould designate a department to managewith manufacturers, whole sellers, and retailers,logistics industry and stipulate its functions andetc, carrying out information disposal andwork different from other departments. Theinformation exchange, which guaranteedGovernment should also provide good servicesproviding clients with commodities on time,in aspects of construction programming,keeping reasonable inventories and reducing useof capital.technical transformation, custom clearance,D. Establish national logistics networkcommunication control, industrial andcommercial administration, finance and taxation,improve overall transportation leveletc.Railways in China extend in all directions:C. Accelerating systematization ofwaterways link to 18000 kilometer coastlinesinformation to promote logistics development.As early in 1960s, over 100 commodity

through tedious formalities to enter into. For example, if the company wants to undertake transport business，it needs to get permissions of many administrative departments governing waterway transport, railway transport, air freight, foreign trade, industrial and commercial registration, taxation, land resources public security, Therefore，and customs respectively the Government should responsible for the designate a department logistics, or establish efficient examining and approval system, to cut overlapped formalities and steps. As modern logistics involves almost all categories of goods and materials, there exists a lot of supplying steps and relative supervising departments. The regular supervision on logistics enterprises should be taken by different departments based on their respective functions，but the withdrawal of the enterprises should be managed by only one department. So the Government should designate a department to manage logistics industry and stipulate its functions and work different from other departments. The Government should also provide good services in aspects of construction programming, technical transformation, custom clearance， communication control, industrial and commercial administration, finance and taxation, etc. C. Accelerating systematization of information to promote logistics development. Infrastructure，management and information are three pillars of modern logistics. Because of managing structure, we have not set up unified logistics information system in China. However, the rapid development of telecommunication has laid a solid foundation for the construction of logistics information system, and application of computer in a wide range is one of the main features of realizing logistics modernization. We should pay special attention to the establishment of logistic information system and stipulation of logistics technology standards. In developed countries, "logistics center" and "supply center" have been computerized, not only in aspects of warehousing and selection, but also of business undertaking, management, transportation control, etc. Chinese large-scale supermarket chains have been equipped with computer managing system, and have realized nets linkage with manufacturers, whole sellers, and retailers, etc, carrying out information disposal and information exchange, which guaranteed providing clients with commodities on time, keeping reasonable inventories and reducing use of capital. D. Establish national logistics network improve overall transportation level Railways in China extend in all directions; waterways link to 18000 kilometer coastlines. As early in 1960s, over 100 commodity

suppliers, located in large and medium-sizeto students of industrial and commercialsuppliers,management major.Enterprises shouldcommunication huh areas nationwide, organizedcooperate with colleges and universities ina national commodity supplying network andcultivation of professionals, encourage collegessigned a transferring agreement, so that theyand universities to set up logistics major,would have logistics meeting every year. Thisenhance professional trainings for insiders, andstructure played an important role inestablish effective mechanism to introduceguaranteeing commodity supply at that timespecial personnel and give awards to excellentSince China's economic reform, this closedpersons, in order to enhance competitiveness ofChina's logistics and promote its development.supply network affiliated to commercialdepartment has been incompatible with therequirements of large-scale trade and large-scalelogistics radiating the whole society.In additionsome original enterprises in the supply networkhave re-constructed or reorganized,no longerundertaking transferring business. So, the toppriority task is to re-network for building up newtype of logistics network which is able to radiatethe whole country and in conformity withdevelopment of modern business.E. Accelerating cultivation of professionalpersonnel lay a solid foundation for logisticsdevelopmentWith economic globalization and rapiddevelopment of information technology, the vitalthing is to cultivate professional personnel.Firstly, we should establish logisticsmanagement colleges; cultivate seniorprofessionals with master and doctor degreesSecondly, relevant colleges and institutes shouldset up logistics major, and offer logistics courses

suppliers, located in large and medium-size suppliers, communication huh areas nationwide, organized a national commodity supplying network and signed a transferring agreement, so that they would have logistics meeting every year. This structure played an important role in guaranteeing commodity supply at that time. Since China's economic reform, this closed supply network affiliated to commercial department has been incompatible with the requirements of large-scale trade and large-scale logistics radiating the whole society. In addition, some original enterprises in the supply network have re-constructed or reorganized，no longer undertaking transferring business. So, the top priority task is to re-network for building up new type of logistics network which is able to radiate the whole country and in conformity with development of modern business. E. Accelerating cultivation of professional personnel lay a solid foundation for logistics development With economic globalization and rapid development of information technology, the vital thing is to cultivate professional personnel. Firstly, we should establish logistics management colleges; cultivate senior professionals with master and doctor degrees. Secondly, relevant colleges and institutes should set up logistics major, and offer logistics courses to students of industrial and commercial management major. Enterprises should cooperate with colleges and universities in cultivation of professionals，encourage colleges and universities to set up logistics major, enhance professional trainings for insiders, and establish effective mechanism to introduce special personnel and give awards to excellent persons, in order to enhance competitiveness of China's logistics and promote its development

Tianjin Invests In Building China's Packaging IndustryBaseAt present, China's first green packaging is under construction in Tianjin Economic industrialpark and Technology with a total investment of RMB billion Development Zone. This indicates thatin future several years, Tianjin will become a platform in packaging industry and become a giantworld first class comprehensive service base and development in China's packaging industry.Packaging is one essential link in a product's marketing. Its technology level decides its fate. China'sPackaging General Company invests in Tianjin Development Zone to construct China's greenpackaging park, integrating ten big centers in packaging industry, that is, packaging research anddevelopment, packaging design, quality testing, standards research, quality certificate, informationnetwork, packaging training,packaging machinery,materials exhibition, and packaging logistics, andtwo big bases of packaging talents and green packaging industrialization demonstration. This willform a development platform of packaging industry for enterprises, which can offer all-round servicesin Tianjin, and also will become a new economic increase point for Tianjin. The first phase of theproject will be completed by the end of this year, and the whole project will last three years. It isreported that, the state packaging products quality-testing center which was built 15 years ago willmove into the development zone.In addition, the other research and development, and design centersof the General Company in other provinces and cities will also get together in Tianjin. The onlypackaging college Zhuzhou Industrial Institute will set up a branch in Tianjin Development Zone. Theconstruction of this packaging park has attracted attention from international packaging field. Somehave expressed the intentions to join in the park.Tianjin's packaging industry Tianjin jointly invested by China has great development potentialsChina's Packaging Scientific Research Center in and France is the largest packaging-testing center inAsia. It has advanced technology and equipment and its testing certificate has been admitted in nearly40 countries in thewholeto stingworld

Tianjin Invests In Building China’s Packaging Industry Base At present, China's first green packaging is under construction in Tianjin Economic industrial park and Technology with a total investment of RMB billion Development Zone. This indicates that in future several years, Tianjin will become a platform in packaging industry and become a giant world first class comprehensive service base and development in China's packaging industry. Packaging is one essential link in a product's marketing. Its technology level decides its fate. China's Packaging General Company invests in Tianjin Development Zone to construct China's green packaging park, integrating ten big centers in packaging industry, that is, packaging research and development, packaging design, quality testing, standards research, quality certificate, information network, packaging training, packaging machinery, materials exhibition, and packaging logistics, and two big bases of packaging talents and green packaging industrialization demonstration. This will form a development platform of packaging industry for enterprises, which can offer all-round services in Tianjin, and also will become a new economic increase point for Tianjin. The first phase of the project will be completed by the end of this year, and the whole project will last three years. It is reported that, the state packaging products quality-testing center which was built 15 years ago will move into the development zone. In addition, the other research and development, and design centers of the General Company in other provinces and cities will also get together in Tianjin. The only packaging college Zhuzhou Industrial Institute will set up a branch in Tianjin Development Zone. The construction of this packaging park has attracted attention from international packaging field. Some have expressed the intentions to join in the park. Tianjin's packaging industry Tianjin jointly invested by China has great development potentials. China's Packaging Scientific Research Center in and France is the largest packaging-testing center in Asia. It has advanced technology and equipment and its testing certificate has been admitted in nearly 40 countries in the whole to sting world