The Bottleneck and Countermeasures of Logistics in E-Commerce: A Special Line from Shanghai to Wuhan

by diyicics on 2009-12-02 17:10:08

Bottlenecks and Countermeasures of Logistics in China's E-commerce

As global e-commerce gradually permeates every aspect of our lives, the "logistics bottleneck" problem in e-commerce has become a significant obstacle to the development of e-commerce in China, thereby constraining economic growth. This article introduces the process of e-commerce activities and elaborates on the impact of logistics systems in the implementation of e-commerce. It proposes that logistics systems are essential for the realization of e-commerce. In light of the current issues within China's e-commerce logistics system, this paper combines advanced foreign logistics solutions and finally suggests some strategies and specific measures for establishing and improving China’s modern logistics system for e-commerce.

I. Logistics System under the Background of E-commerce

E-commerce is a new business operation model that uses the Internet and browser/server applications to achieve online shopping for consumers, online transactions between merchants, online electronic payments, and network services for relevant parties. It can realize payment through means such as electronic cash, software wallets, smart cards, or credit cards and deliver the correct items in the correct quantity to the correct location at the correct time according to customer requirements. Any transaction in modern e-commerce involves several basic "flows," namely information flow, commerce flow, capital flow, and logistics. As an important link supporting tangible goods in online business activities, whether the modern logistics system can be established and improved not only becomes a major obstacle to online business activities but also a crucial factor for the smooth development of China's modern logistics industry.

Logistics refers to the planning, implementation, and control management process of effectively flowing and storing raw materials, intermediate inventory, final products, and related information from the starting point to the destination to meet consumer needs. Due to the short development time of modern logistics and its system in China and the immaturity of various conditions, it has become an important factor severely restricting the momentum and further expansion of China's e-commerce logistics industry. Only by breaking through the "bottleneck" of logistics informatization and establishing and perfecting the modern logistics system can we promote the further development of China's e-commerce and enhance the competitiveness of traditional industries.

II. Current Status of China's E-commerce Logistics System

Overall, China's logistics system is still in its early stages of development, with a relatively small scale and low level of development. The rapid development of e-commerce has further exposed the inadequacies of China's logistics system. Therefore, building a modern logistics system has become an urgent issue to be resolved in the development of e-commerce. On one hand, this is determined by the current level and stage of China's economic development; on the other hand, there are many factors affecting and restricting the healthy development of the logistics industry.

2.1 Lack of Correct Understanding and Recognition of Logistics, Outdated Concepts

Currently, people's understanding of logistics is still relatively weak. People often focus on the electronic and networked processes of information flow, commerce flow, and capital flow in e-commerce while neglecting the electronic process of logistics. They have insufficient understanding of the concept, status, and role of modern logistics, considering it merely a new name or extension of the transportation industry. As a result, most modern logistics are still completed through traditional distribution channels, which is an important reason why China's logistics industry has long failed to develop. The logistics industry is an important sector in the national economy, playing a significant role in enhancing the level of the transportation industry, promoting economic development, and meeting social needs.

2.2 Relatively Backward Business Environment

In China, most enterprises operate their own logistics, forming a "large and scattered" or "small and complete" material circulation layout that hinders the development of China's logistics industry and leads to idle assets and wasted funds. Moreover, the previous segmented management system has resulted in numerous single-function freight forwarding companies. These companies have narrow service scopes, weak horizontal cooperation, and cannot provide complete supply chain services. Additionally, due to low levels, outdated equipment, they fail to meet customers' requirements regarding time and service quality or make customers feel that outsourced logistics are more advantageous than self-operated logistics, leading to sluggish demand for logistics services. Furthermore, the backwardness of China's information tracking service system and network system also restricts the development of the logistics industry. The lag in updating information services and network systems significantly undermines the solid foundation required for the development of the logistics industry.

2.3 Unreasonable Layout of Logistics Infrastructure

In recent years, the state fiscal investment in logistics infrastructure construction has increased. However, due to the past influence of the "emphasizing production, neglecting circulation" ideology, the overall scale of China's logistics infrastructure remains relatively small. It not only lags behind developed countries but also falls behind developing countries like India and Brazil.

On the other hand, the layout of logistics infrastructure construction is also unreasonable. Transportation facilities in eastern regions are relatively developed, accounting for about 50% of the country's total, while central and western regions account for only 34% and 16%, respectively. During the transition from a planned economy to a market economy, the economic benefits of logistics enterprises have generally declined, resulting in outdated internal facility equipment equivalent to the level of developed countries in the 1960s and 70s. The lagging development of the logistics industry and the unreasonable layout of the logistics system have led to low transportation efficiency in China's logistics industry.

2.4 Outdated Management Systems in Logistics Enterprises, Urgent Need for Improvement in Service Levels

Although some specialized logistics enterprises have emerged in China, the service levels and efficiency of logistics remain relatively low. Mainly manifested in: the scale and strength of enterprises engaged in logistics services are still relatively small, only providing simple transportation and warehousing services. In terms of value-added logistics services such as circulation processing, logistics information services, inventory management, logistics cost control, especially in logistics scheme design and full-process logistics services at higher levels, comprehensive services including planning, programming, and consultation have not been fully launched, making it difficult to provide full-process services. Most enterprises engaged in logistics services lack necessary service standards and internal management procedures, leading to extensive management and difficulty in providing standardized logistics services.

2.5 Severe Shortage of Logistics Talent

Chinese enterprises generally lack compound talents who are proficient in modern logistics operations and logistics management. The teaching work of logistics specialties in China started late, with a severe shortage of teachers; the teaching methods are also relatively single and backward; the teaching process lacks practical links, and the lack of professional teachers and vocational education for logistics personnel in post is also a constraint on the development of China's logistics. Vocational education for logistics personnel in post is even more scarce, and the quality of practitioners is low.