The reasons for the electrical business to do logistics

Jingdong Mall CEO Liu in an interview with Reuters , "Since logistics is the biggest problem in this industry, but also hinder the profitability of E-commerce enterprises, then why do we not use this as a basis to develop their core competitiveness?" Liu for the East Why do logistics of the rhetorical question, but also the common idea of the major manufacturers, in fact, the electrical business to do logistics reasons can also be summarized as follows:

1. Domestic third party logistics capability is not advanced enough, can not meet the needs of e-commerce companies (such as delivery costs, efficiency speed, quality of service, etc.), the third party logistics local separatist serious, the global distribution capacity is limited, can not provide professional services covering the whole country, the third party logistics capacity is insufficient, holiday promotion day of the burst warehouse often appear; Third-party logistics business is not standardized, packet loss, stealing and so on, resulting in a sharp increase in user complaints;

2.B2C Web site to enhance the user experience. Self-built logistics system can better grasp from the "warehouse-consumer" aspects of the situation (including the electrical business often headache "last kilometer"), improve service quality and efficiency, such as faster delivery of goods (211), and more personalized delivery (POS machine card, night delivery, etc.); Self-built logistics system can better improve the cash flow rate, ease the liquidity pressure, most of China's online buyers are still accustomed to the payment of goods, since the construction of logistics embodies the ability to spread the brand, launched for consumer marketing initiatives

3. Create a core competitive advantage. As shown in the 2nd above, self-built logistics can greatly enhance the user experience, in the online price is more and more transparent (a promotion of this matter), have a better experience will retain the user. Self-built logistics can also help the electrical business to expand the category faster, and in the one or two-line city, quickly seize the three or four-line city market, in the long run, through the logistics control, can save the relevant costs;

4. Rental logistics services to make money. Amazon is an example of the power business in renting out logistics (it is important to point out that Amazon's logistics is different from what is usually called logistics). The main building of the Amazon is to cover the entire U.S. warehousing warehouse, and logistics operation of the efficient information system, as for the distribution work is to FedEx, UPS and other completed. The main domestic consumer currently launches a Third-party open platform, which means that it has the opportunity to launch a logistics open service on this platform, and with the help of open logistics to build logistics costs, access to new sources of revenue;

Summing up to this point, you should have a basic understanding of why the electric chamber has built its own logistics. In the past six months, China's E-commerce logistics can be described as a new upsurge, the landmark event for the Alibaba Group launched the "tens of billions of major logistics plan", as well as Beijing East 1.5 billion U.S. dollars after the announcement of continued large-scale investment logistics. According to China e-Commerce Research Center "2011 First half of China e-commerce Development Report" statistics show that 2011 (on) China's business market share of the net purchase of the first few Taobao mall 48.5%, Jingdong Mall 18.1%, Excellence Amazon 2.4%, Dangdang 2.2%, where customer Prudential products 2%, The following will be the main inventory of the 5 logistics forces.

1. Taobao Mall (ie Alibaba Group) logistics

Taobao has long sought logistics autonomy (such as investing in the Stars and logistics), but the overall progress has been slow until the 2010, when the logistics plan suddenly sped up. Logistics delivery is behind Taobao Mall development of a strong push, and Taobao B2B2C platform to meet the objective needs of competition.

Taobao officially launched "Taobao Big Logistics Plan", the plan includes three large chunks of content, respectively, based on logistics information, trading messages and business ERP system fully through the logistics Treasure Platform, logistics partner system and logistics service standard system.

Taobao Logistics platform refers to the joint domestic and foreign warehousing, courier, software and other logistics enterprises to form a service alliance, to provide one-stop E-commerce logistics distribution outsourcing services to solve the business goods equipped with (goods, processing, sorting, picking, distribution, packaging) and delivery of difficult logistics information platform. "Taobao Big logistics plan" so that Taobao has more power of speech, in addition to control the quality of logistics manufacturers, but also through the "Logistics Service standard system" to the logistics business delivery time, service quality and other specific links to achieve effective control (supporting systems such as: Inventory system, margin system, punishment system and customer complaints system, etc.).

January 2011, Alibaba released an upgraded version of logistics strategy, MA Yun announced Ali will be with partners to invest billions of construction cover the national logistics system. Project Phase I will invest 20 billion yuan to build the National warehousing system (built 7个百万 square meters above the Ali Big Warehouse), covering northeast, north, east, South China, central China, southwest and northwest of the seven regions (according to the information has been basically selected Beijing, Shenyang, Zhengzhou, Urumqi, Chengdu, Guangzhou, Shanghai); Second phase and other partners to jointly raise 100 billion yuan, the development of logistics systems.

In the interpretation of logistics strategy, MA Yun said that the positioning of the Alibaba warehouse for professional logistics developers and open social warehousing services platform, any logistics enterprises, Taobao sellers, independent consumer E-commerce sites can use Ali warehousing public services, and deliberately stressed that will not rob the logistics company's rice bowls, " Ali do logistics only two things: one is Taobao order open query system, the second is the storage platform, will not do the goods to the door of the (distribution) work. Alibaba Group chief of staff Zeng will be more briefly summed up as "Ali only do two things, logistics treasure (that is, information management system) and warehousing (only responsible for the positions are not responsible for management operations), in principle no longer involved in the logistics of other links."

Use the pyramid model as an analogy. Ali warehousing equivalent to Taki, logistics treasure equivalent to the top of the tower, perhaps in Ma Yun, as long as the control information System (tower) and warehousing links (Tadi), in fact, control the entire commercial logistics system-from the purchase, shelves to accept orders after shipment, transportation, distribution and other links will be in control In the logistics of treasure, warehousing between all links, can be entrusted to the third-party companies to deal with, so there is an analysis of the Ali logistics platform known as the "Fourth party logistics platform"-integration of Third-party logistics resources, to provide a wider range of unique supply chain solutions. For the warehousing profit model, Ma said the main source is by rent and real estate appreciation.

"Fourth party logistics platform" is undoubtedly a huge project, only the construction of warehousing is very expensive, perhaps more difficult is Ali how to integrate Third-party logistics services companies to their own platform, here to balance a variety of interest relations (to know the distribution and other aspects of standardization requirements higher), but also need to build strong data computing power (Aliyun can afford this?).

2. Jingdong Mall

Jingdong Mall relatively early start of logistics since the establishment of work, July 2007, Beijing East announced the completion of the three major logistics systems, Shanghai, Guangzhou, the total logistics area of more than 50,000 square meters. At the beginning of 2009, Jingdong Mall financed the establishment of a specialized logistics company, layout the national logistics system. January 2010, Beijing East won the Tiger Global Fund received 150 million U.S. dollars of financing, Liu said half of the financing will be used for logistics system, the same year March, Beijing and East announced the north, east, south and southwest of the four major logistics centers built. Up to now, according to the Beijing-East official website data show, Jingdong has a logistics center including Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, 5 cities, two logistics center, including Shenyang, Jinan, Xian, Nanjing, Hangzhou, Fuzhou, Foshan, Shenzhen, as shown in the following picture:

According to media reports, Beijing-East will continue to be in Shenyang, Xi ' an logistics center construction, the goal is to have 7 level logistics Center (Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Shenyang, Xi ' an), in addition to the completion of 25 two-level logistics operations center, as well as more cities, three-level logistics center (including urban distribution station). Beijing East currently has more than 7,000 employees, of whom about 2/3 are subordinate to the logistics distribution system.

April 2011, Beijing East completed the 1.5 billion U.S. dollar C round financing, said the next 3 years a total investment of 5 billion-6 billion yuan for logistics construction. BEIJING-East also disclosed that at the beginning of 2009 to obtain 21 million U.S. dollars B-round financing of the 70% funds have been used for logistics system construction. Jing Dong now set the target is 2013 to achieve 40 billion-50 billion yuan sales, of which the proportion of independent distribution increased to 95%, the daily order delivery capacity reached 3 million single.

In addition, Jingdong mall December 2010 launched a third party open platform, for the settled businesses to provide warehousing, distribution, customer service, after-sale, delivery, return and replacement services, August 2011, Jing Dong CEO Liu in an interview said: "With the investment in logistics, logistics open is inevitable." Next January will be ready to split the logistics business, fully independent operation, market-oriented operation, hoping to more e-commerce and traditional enterprises to provide logistics services. In other words, the future of Jingdong will be expected to profit by leasing logistics services.

3. Amazon Excellence

2004 years ago, Excellence has been competing for the status of "the world's largest Chinese book store", after being acquired in 2004, the Strategy of excellence has been adjusted and has been transformed from 2005 to the online mall that sells whole goods. In the logistics construction, the remarkable Amazon has gone through some detours, for example, according to media reports, the 2004 Network of Excellence was Amazon's acquisition, Amazon CEO Bezos to excellence has its own distribution team and puzzled (Bezos for Amazon positioning as a technology company, the core of the data processing and system build, Distribution and so on to the partners, such as FedEx, and the abolition, three years before recovery; for example, before 2008, the excellence of Amazon in the national logistics layout slow, until the industry has exploded, before the decision to invest heavily in logistics construction.

Up to now, excellent Amazon has in the country has Beijing, Guangzhou, Suzhou and Chengdu four logistics centers, but also has a courier team, distribution center, call center. Outstanding Amazon's own Express company for the "Century Excellence Express", the company now undertakes most of the order business. Excellence at the same time with a number of courier companies long-term cooperation, wind Fire Express, landscape with the city, small red Hat speed is responsible for part of the region. UPS Logistics Company undertakes overseas orders.

July 6, 2011 Excellence Amazon launched "I want to open shop" and "excellent Amazon" logistics services, the formal opening of Third-party sellers platform. "I want to open a shop" platform for all sellers, the early implementation of the seller "zero input" strategy, free for sellers to provide services. "Excellent Amazon Logistics" service refers to, the seller does not need to invest in warehousing, logistics and other expensive infrastructure construction, just do the product itself, and warehousing, logistics and even return services customer service, by the excellent Amazon complete. It is noteworthy that the "I want to open shop" and "Amazon Logistics" two major projects in the Amazon has been successfully operating for many years, is a strong driving force for business growth, the brilliant Amazon launched similar services, the effectiveness of how to continue to observe.

4. Dangdang

November 1999, Dangdang officially opened. When the development of the initial use of Third-party logistics services, with the rapid development of business, when the start of the local self-built warehouse, but the distribution service is still using third-party companies. May 2007, when the Beijing Logistics center into operation, covers an area of 40,000 square meters, September 2010, Dangdang announced built in Beijing, Shanghai, Guangzhou, Chengdu, Wuhan, Zhengzhou, 10 logistics centers, the total area of 180,000 square meters.

April 2011, Dangdang announced delivery speed, in a logistics center in Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Wuhan, Zhengzhou, seven major cities officially opened delivery day, in addition to group purchase, such as large orders, the city users before 11 o'clock the day before the successful submission of orders, 70% orders can be achieved "the day of the order, the day of delivery. According to Guoqing revealed that, in addition to the existing 7 major logistics centers, Dangdang Shenyang and Wuxi new warehouse has been completed, the total area of more than 100,000 square meters.

In general, when the logistics strategy is: the operation of their own warehousing links, by Third-party Logistics providers responsible for distribution. When chairman Yu said "This strategic choice is mainly about cost." In the future, we will continue to select third party suppliers as long as third party logistics providers can provide lower cost and higher quality services than our own. But do not build distribution company, this is also when and Jingdong logistics construction of the biggest difference.

February 2011, when announced to lead the formation of a dangdang-holding distribution services company, to create an independent logistics open platform for E-commerce enterprises to provide commodity storage, sorting, packaging and more than 1200 cities nationwide delivery of goods (COD) services. According to Zhang Yi, vice president of operation, "the logistics open platform will still be organized by the existing excellent third party Express company, and will establish a common service standard and strict service assessment system". Third-party logistics platform can be said to continue when the logistics strategy, is still based on the cooperation with Third-party logistics, and will not do "full package" logistics companies.

5. Every guest net

Where the customer prudential product was established in October 2007, the beginning of the establishment of the distribution department, at that time, the entire distribution department has only 15 distribution staff. April 2008, based on the rapid development of business volume, where the customer registration set up an independent logistics company "such as Wind Tatsu", mainly responsible for Beijing, Shanghai and other key urban logistics and distribution. After entering the 2009, in order to meet the rapid growth of distribution services, where customers increase their companies such as wind Tatsu investment, in the positive positions at the same time the distribution network coverage to more cities. As of September 2011, according to the Wind network data show that at present, where customers have been opened distribution of 27 cities, including Liaoning (Shenyang), Beijing, Tianjin, Shanxi (Taiyuan), Shaanxi (Xian), Shandong (Jinan), Hubei (Wuhan), Sichuan (Chengdu), Anhui (Hefei), Jiangsu (Suzhou, Wuxi, Nantong, Yangzhou, Nanjing, Changzhou, Jiangsu (Hangzhou, Ningbo, Shaoxing, Jiaxing, Huzhou), Hunan (Changsha), Guangdong (Guangzhou, Foshan, Shenzhen, Dongguan), Fujian (Xiamen, Fuzhou). As shown in the following illustration:

According to Li Hongyi, general manager of the wind, it is expected that at the end of 2011 every guest will achieve 28 key cities coverage, the number of distribution team at least 8000 people.

Where the reasons for the logistics is clear: the first to make up for the lack of third-party logistics, including the promotion of delivery scale, speed, efficiency, including the scale in the holiday advantage especially obvious (third party logistics holiday shipments will be reduced); second, can provide personalized services, such as "Open box test on" service; Third own distribution personnel can also carry out brand promotion, promotion, shopping guide and so on.

Note: The reference data are from the relevant company's official website and media reports, there are omissions please leave a message.