What are the advantages and disadvantages of self-built

With the development of e-commerce logistics, many companies have seen the important role of logistics for enterprise development. The speed of logistics is not only related to the operation of the enterprise, but also related to user experience. Therefore, the phenomenon of self-built logistics of some enterprises has gradually appeared on the market. So, what are the advantages and disadvantages of self-built logistics? Here I will answer for you.

First, the advantages of self-built logistics

1. Take control

For the internal purchasing, manufacturing and sales links, the performance and specifications of raw materials and finished products, and the operating capabilities of suppliers and sellers, the company has the most detailed information. An enterprise's self-built logistics can use its own data to effectively coordinate all aspects of logistics activities, solve problems in the management of logistics activities at a faster speed, and obtain first-hand information from suppliers, sellers, and end customers in order to Adjust your business strategy at any time.

2. Revitalize the company's original assets

Enterprises choosing self-built logistics can revitalize the original logistics resources on the basis of transforming the management structure and mechanism of the enterprise, drive capital flow and create profit space for the enterprise.

3. Reduce transaction costs

When choosing a logistics third party, due to the asymmetry of the information, the enterprise cannot fully grasp the complete and true information of the logistics service provider. The company controls the procurement of raw materials and the sale of finished products through internal administrative powers. It is not necessary to negotiate for commissions in transportation, warehousing, distribution, and after-sales service, avoiding the uncertainty of multiple transaction costs and transaction results, reducing transaction risks, and reducing transaction fee.

4. Improve corporate brand value

Enterprises can build their own logistics systems to control marketing activities independently. On the one hand, they can serve customers at home, so that customers can get to know the company and products at a close distance; on the other hand, companies can grasp the latest customer information and market information, and according to customers Demand and market development trends adjust the strategic plan.

5. Can protect the security of business secrets

Self-built logistics can control the entire process from procurement, production to sales, and has the most detailed information. Can effectively coordinate all aspects of logistics activities. If it is handed over to a third-party logistics company, it will inevitably touch the trade secrets of the company's purchase plan, further to production plans, and even new product development plans. The company's own logistics can protect the trade secrets of the company. For example, Haier Logistics, Zhang Ruimin took out hundreds of millions of self-built logistics for the purpose of protecting corporate trade secrets.

6. Effectiveness

Enterprise self-built logistics can effectively use the original resources, revitalize the original logistics resources, drive capital circulation, and open up more profit space for the enterprise.

Disadvantages of self-built logistics

1. Increased the investment burden of enterprises and weakened their ability to resist market risks

In order to run logistics on their own, enterprises must invest a large amount of money in storage equipment, transportation equipment and related human capital. This will inevitably reduce the company's investment in other important links and weaken its market competitiveness.

2. Enterprise distribution efficiency is low, management is difficult to control

For most enterprises, the logistics department is only a logistics department of the enterprise, and the logistics activities are not good at the enterprise. In this case, the self-operated logistics of the enterprise is equivalent to forcing the company to engage in business activities that are not good at it. The managers of the company often need to spend too much time, energy and resources to perform auxiliary work. As a result, the auxiliary work does not have Grasp it, key businesses cannot play a core role.

3. Limited scale, very low degree of specialization in logistics and distribution, high cost

For small-scale enterprises, the number of products is limited. The use of self-owned logistics cannot form a scale effect. On the one hand, the cost of logistics is too high, and the competitiveness of the product in the market is reduced. On the other hand, due to the limited scale, logistics distribution The degree of specialization is very low and cannot meet the needs of the enterprise.

4. The benefit evaluation is difficult, and accurate benefit evaluation cannot be performed

Because many self-built logistics companies use internal functional departments to complete their own logistics independently, and do not separate the logistics for independent accounting, it is difficult for companies to accurately calculate the logistics cost of products, and it is difficult to be accurate.