What are the problems with self-built logistics?

With the gradual growth of the e-commerce industry, the importance of logistics has become increasingly prominent. The e-commerce industry even popularized the phrase 'to win the logistics of the world.' Therefore, self-built logistics has become one of the important strategies for major e-commerce companies to enhance their competitiveness. Although the benefits of self-built logistics are many, there are certain problems. So, what are the problems with self-built logistics? Here I will answer for you.

In recent years, with the explosive growth of China's e-commerce industry, the logistics competition that has swept across the country has been launched. From the initial lease of a small warehouse to a self-built distribution system or even a large logistics center. For a time, a new round of development in the logistics and warehousing industry led by the e-commerce giant seems to be coming. Major online retailers including Amazon, JD.com, Taobao, and Suning have joined self-built logistics. But for the moment, there are still many problems with self-built logistics:

I. Insufficient funding

Nowadays, the major B2C e-commerce companies have expressed pressure on the capital needed for self-built logistics, and most of these e-commerce companies rely on the funds from financing to invest in the logistics system. The development of self-built logistics depends on the capital investment obtained. The enterprise itself cannot afford such a huge amount of capital pressure, so once the supply of funds is stopped, the development of self-built logistics will be greatly affected.

Second, the distribution of logistics distribution points is difficult to manage

In the process of building their own logistics distribution system, there are often outages in some local distribution points, insufficient distribution points and wasted distribution resources in some places. Self-built logistics has just begun, and various e-commerce companies are stepping up their own logistics distribution. Coverage area. Due to the lack of professional logistics management, the overall layout of logistics distribution is difficult to manage.

Third, warehouse land is difficult to find

The outbreak of e-commerce has ignited the entire logistics industry. However, the multiplying online purchase orders have also exposed the shortcomings of the logistics industry, and the warehousing link is the biggest bottleneck in the current logistics system. With the announcement of JD Mall, most of the US $ 1.5 billion in its third round of financing will be invested in self-built logistics, and Alibaba will spend 100 billion yuan to build a large-scale logistics system. Almost all hot cities have a pool of hard-to-find , Rent jumps and other warehouse shortages. China's warehouses are in short supply as a whole, and many goods can only be stored in open-air yards or in unqualified simple warehouses. According to the National Storage Industry Development Index published by the China Storage Association, in 2010, the total area required for general warehouses nationwide was 701 million square meters, and the actual warehouse area was 550 million square meters. Various B2C e-commerce companies have to face this big problem of warehousing while continuously developing logistics.

Lack of logistics talent

Comparing the current number of logistics or related professional institutions in China and the demand for logistics talents in China, it can be seen that as of 2010, there were about 300 logistics institutions in China, and according to statistics from relevant departments, At present, the talent gap of logistics professionals in China is more than 6 million. By 2015, the demand for senior logistics managers or logistics strategy and logistics design management personnel will reach more than 400,000. Great disparity. Moreover, the existing methods of training logistics talents by school education alone can only cultivate a limited number of logistics professionals. It is even more difficult to cultivate experienced senior logistics managers. Obviously, the current scale and method of logistics personnel training cannot meet market demand.

V. Management pressure

For e-commerce companies, the advantage lies in network marketing. For self-built logistics, everything needs to start from scratch. For e-commerce companies, logistics is a new business area. Establishing your own logistics system and operating and managing it is undoubtedly a challenge for e-commerce companies. Logistics is a huge system. Wherever the business area of ??an enterprise expands, logistics services must follow, and the corresponding logistics infrastructure, equipment, and operation teams must also be fully equipped. The huge difference in the business field is the first major pressure on the management of e-commerce companies that build their own logistics systems. In addition, the huge logistics staff also increases the management difficulty of e-commerce enterprises. Managing hundreds or thousands of employees is more complicated and difficult than managing a few third-party logistics companies.

Of course, in addition to the above issues, there are still many problems with self-built logistics, and I will not list them one by one. However, it is worth mentioning that although there are problems with self-built logistics, the benefits brought to e-commerce enterprises are also many, and everyone needs to look at them properly.