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The Present Situation Of Third Party Logistics In China
Jun 19, 2018

1.Logistics concept is backward, self-run logistics phenomenon is prominent. Because of the wrong understanding of logistics as a "third source of profit" and the influence of the concept of "big and complete" and "small and complete", many production or commercial enterprises are afraid of losing control over procurement and sales as well as being afraid of extra profits being earned by other enterprises. Both build their own logistics system, do not want to seek logistics services.

2.Serious fragmentation, small enterprises. For a long time, due to the influence of planned economy, logistics enterprises in our country have formed a diversified logistics pattern. In addition to new foreign capital and private enterprises, most of the third party logistics enterprises are commercial, material and grain in the period of planned economy. Transportation and other departments storage and transportation enterprises from the transformation.

3. The logistics channel is not smooth. On the one hand, the operation of the network is unreasonable, and there is no network. There is a lack of cooperation between the third party logistics enterprises and between the enterprises and their customers, the shortage of goods sources, the overcapacity of the traditional warehousing industry and the transportation industry, which results in waste. On the other hand, information technology is lagging behind. Information technologies such as Internet barcode EDI and so on are not widely used logistics enterprises and customers can not fully share information resources and do not form interdependent partnerships. 

4. The service is not fully functional. Most logistics enterprises can only provide a single or segmented logistics services, logistics functions mainly stay in storage, transportation and urban distribution, related packaging, processing, distribution and other value-added services, can not form a complete logistics supply chain. 

5. Lack of logistics personnel, backward facilities, low level of management. The logistics industry of our country is still in its infancy, higher education and vocational education have not kept up with each other, the talents are lacking and the quality is not high; the equipment of logistics facilities is backward, aging and mechanization is not high, which does not meet the specific requirements of customers.

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