The hottest program innovation has become the lack

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Program innovation: the lack of logistics industry in China

Wu Yuzhang, the head of Volvo China, is a Chinese American. His fame in the domestic logistics industry is not because of his title of executive vice president of Volvo truck company in Asia and President and CEO of Volvo truck company in Greater China, but because of his stability, accuracy and precision in the logistics industry in China

the essence of independent innovation

"independent innovation" is the hottest word at present. With regard to the independent innovation of the logistics industry, Wu Yuzhang looked at China's 3000 year history and studied what had affected the changes in China's national strength. "When opening up and absorbing, such as the Han, Tang and Yuan Dynasties, we will be very strong if we learn from each other fairly, justly and openly with all ethnic groups; when we are closed and have a sea ban, we will be weak, such as the late Song, Ming and Qing Dynasties." Wu Yuzhang's words changed: independent innovation is for the prosperity and strength of China, but independent innovation must stand on the shoulders of giants and cannot be closed. Starting from scratch is not the true meaning of independent innovation

the innovation of logistics basic technology needs a lot of failures to support; Program innovation is relatively simple. Wu Yuzhang's theory is that, for example, when boiling tea eggs, as long as the eggshell is broken and the thin skin is pierced, the tea eggs will taste good. If this eye is missing, the boiled eggs are almost the same as white eggs

"for our countries that are not very rich, independent innovation must be based on national strength and the current foundation, and the use of taking doctrine. This is the task of logistics." Wu Yuzhang quoted classics to explain that Mr. Lu Xun said that if the owner is a new owner, the house will also become a new house. Without taking doctrine, it is impossible to become a new thing guided by the development of industrial technology. How can I get it? The successful model of South Korea and Japan is to introduce, digest, absorb, transform and re innovate. After the introduction of technology, greatly increase the investment in digestion and absorption, and promote the ability of re innovation. "We might as well compare with South Korea and Japan", Wu Yuzhang came up with a set of surprising figures: the investment mode of South Korea and Japan is that for every 1 yuan introduced, the investment digested and absorbed is 7 yuan, and the investment reinvented on this basis is 10 yuan; And our investment in digestion, absorption and re innovation in China is 7 cents. That is to say, when buying things for 1 yuan from foreigners, South Korea and Japan invested 143 times as much as we did in turning them into their own things

"it doesn't cost much to pierce that layer of egg skin, so program innovation is our most important innovation mode." Wal Mart, a retail giant, is a model of program innovation. Advanced information management makes Wal Mart's goods always on the road, which greatly reduces inventory and costs

low efficiency is a money burning game

because our logistics is inefficient, foreign companies' factories in China are basically built only 100 kilometers away from the harbor. "The cost of logistics from Chongqing to Shanghai is much higher than that from Shanghai to New York. Ericsson and Nokia's factories in Chengdu and Chongqing are gradually moving out. This makes the true East-West balance and North-South balance of building factories in the mainland lack a basic platform."

although China's highway mileage reached a new high in 2005, although China's highways have developed to the second level in the world, and although the freight volume and freight turnover of the highway transportation industry have increased significantly, these are not enough to show that China's highway transportation industry has achieved a healthy and strong development. China's highway development and road resources are close to those of the United States, but there is a big gap between them in terms of highway transportation efficiency

"trucks in the United States are more expensive than those in China, and their drivers, oil and accessories are more expensive than ours. That is to say, the United States is high-cost, and we are low-cost -- but it is definitely not such a simple formula." The international community generally measures the logistics development level of a country by the proportion of logistics cost in GDP. The lower the proportion, the more advanced it is. The proportion of logistics level in developed countries is about 10% of GDP; Medium developed countries, such as South Korea, account for about 16%, while China's logistics proportion index is about 20% to 30%, significantly lagging behind. The low efficiency of logistics in China leads to the cost of transporting electronic products and food being 40% - 50% higher than that in the United States. On average, China's supply chain has to be reversed 27 times in each shipment. The low transportation efficiency directly leads to the reduction of the return rate of the enterprise, which also means that a large amount of money is burned during transportation. According to the statistics and analysis of the logistics industry in the United States, the average annual return on assets of logistics enterprises dominated by transportation is 8.3%, warehousing is 7.1%, and comprehensive services is 14.8%. In China, the return on assets of most logistics enterprises is only 1%

our consumption and waste in road transportation are surprisingly high. Taking vegetables and fruits as an example, the loss rate in the three circulation links of picking, transportation and storage is as high as 25% to 30%. Among them, there are 370million tons of rotten fruits and vegetables on the way of transportation every year, which can support 200million people... While the loss rate of fruits and vegetables in developed countries is controlled within 5%. Obviously, it is more and more urgent to solve the problem of "low efficiency" in road transportation

"from bar codes, pallets to containers, we don't have a unified standard, so we have to dismantle, install and dismantle, and constantly turnover. People move to the end, we change orders in multiple links, and the high logistics cost has hindered our products from going to the world. If we have logistics as standard as the United States, we can save 1.4 trillion yuan a year."

"fast, long-distance, heavy load" new mode

on American highways, the speed of road transport vehicles is more than 100 km/h, while the average speed of road transport vehicles on the highway in China is only maintained at about 60 km/h, and even only 15 km/h in case of serious overload. The slow speed of road transport vehicles affects the timely delivery of goods, and also takes up a lot of road resources. Road transport vehicles are blocked wherever they go

the rapid development of China's economy has led to the rapid development of the logistics industry, but the inefficient logistics has in turn dragged down the economic development. The logistics industry with trucks as the carrier is becoming a rapidly developing force in China's economic artery. How to improve the efficiency of highway transportation, Wu Yuzhang believes that it should develop to the mode of "fast, long-distance and heavy load"

fast: fast represents accelerating the turnover speed of all links. Fast can well reduce and control inventory, and further reduce the cost of product line changes in response to changes in market demand. "Zero inventory" is the goal pursued by the production enterprises through the inspection of products, and the reason is also from this

long distance: it is not enough for highway transport vehicles on the expressway to run fast. They must also be able to carry long distance, and must have a high "intact rate" and continuous operation ability. Only when the overall advantage of high intact rate is even higher than that of new materials can long-distance, trouble free and uninterrupted long-distance transportation be guaranteed, and only when long-distance transportation is realized by highway can the bottleneck of railway transportation be solved, the tension of "transportation" in "coal, electricity, oil and transportation" be alleviated, and the national development goals such as narrowing the economic gap between China and the west can be achieved

heavy load: after the speed and continuous driving mileage of highway transportation vehicles are guaranteed, the tons and kilometers of highway transportation vehicles must be increased in order to improve the efficiency of highway transportation. "The development of trucks to high tonnage is the mainstream of the times, but it cannot be expanded indefinitely, and the high tonnage of trucks does not bring logistics efficiency. Therefore, it is necessary to improve the tonnage of transport vehicles rather than the tonnage of transport vehicles." Whether the tons and kilometers of transportation vehicles can be increased will become a watershed for the profitability of the transportation industry

"just like a 784billion ton kilometer transportation, you can use trucks, and you can also use 89000 trucks under different program innovations, which is a huge savings for the country, for energy, and for the environment, and for enterprises, it increases the global competition, so as to prevent the endless opening of the two arms." Wu Yuzhang said with a smile, "the value formula I have always advocated has no high-end and low-end, only high efficiency and low efficiency." (end)

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