Research on the Development Countermeasures of Modern Logistics Industry in Henan

Research on the Development Countermeasures of Modern Logistics
Industry in Henan
GUO Lingli
School of Humanities and Political Science and Law,
Henan Polytechnic University, Jiaozuo, China, 454000
[email protected]
Abstract Henan has the favorable conditions and market potential of developing the modern logistics
industry.Logistics industry in Henan has been developing quickly in recent years,but the development of
the modern logistics in Henan starts just now and it will take a long journey to accomplish the task. At
first,the article makes a summary of the current situation of logistics development in Henan.And then it
analyzes the advantages and disadvantages of developing logistics industry in Henan. At last it puts
forward a few countermeasures to accelerate the development of modern logistics industry in Henan
Province.
Keywords Henan Province,modern logistics, the third party material flow,countermeasure
，
1 Introduction
With rapid growth of the economy, the development of logistics industry in Henan province has made
remarkable achievements in recent years.A positive trend has emerged in the development of Henan’s
logistics industry.Current market forms,such as chain operation,distribution,electronic business etc. have
been developing.The third party logistics enterprises are maintaining the fast increase.The speed of
transmitting from traditional logistics to modern logistics is faster.Diverse forms of market players and
investors come into being. When celebrating the big achievements of the logistics industry in Henan,we
should clearly realize the problems facing us today.We must bypass the disadvantage and give full play
to the advantage to promote the good-fast development of the logistics industry in our province.
2 The analyses of the advantage and disadvantage of developing modern logistics
industry in Henan
2.1 The advantage of developing the logistics industry in Henan
2.1.1 The superior geography position and the convenient transportation.Henan province, located in
Middle China, has a strong radiation function and concentration function to the national market ,and it
benefits on the development of modern logistics industry very much.In our country Henan is an
important traffic hub,and there are the railroad trunk lines,such as Jingguang,Jingjiu,Longhai ,etc., and
the national superhighways,such as Jingzhu,Lianhuo and so on., providing a precious transportation
condition to develop modern logistics industry in Henan.Moreover, Henan is the tie of connecting the
western original-material habitat and the eastern consumer-region,and it also provides convenience to
develop the modern logistics industry of our province.
2.1.2 The big economic amount and the strong goods turnover ability.GDP in Henan reaches 1.5
thousand billion yuan in 2007 with increasing 14.5% comparing with last year.Its comprehensive
economic power is situated the Top Five in 31 provinces,municipalities autonomous regions of our
country for several years. The huge economic amount and quick increase in Henan provide ample
resources to develop the modern logistics industry.With many years' efforts, Zhengzhou Commerce City
has already been an important commodity distribution center in the whole country,and the National
Sugar and Liquors Commodities Exchange Fair in Zhengzhou,which called the best market in
China,creates to the tallest record of trade sum for several years.The Chinese Zhengzhou Cereal
Wholesale Market has built up the biggest grain-website in our country, with its on-line trade amount
attaining 100 thousand tons every day.These cases explain that turnover and transportation ability of the
goods of our province is steady promoting.
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2.1.3 The better infrastructure of logistics hardware. Firstly, many of the modern logistics parks and
distribution centers, such as Xinxiang Comprehensive-Logistics-Park, the Logistics Terrace in
Zhengdong New Area of Zhengzhou, Wulibao Village Logistics-distribution-Center in Guancheng
District of Zhengzhou etc.,are being built now.Once they build up, they'll establish the structure of the
great circulation and the great distribution,that regards Zhengzhou as the logistics center in Henan
Province.Secondly,the capacity of logistics storage is strong. Take Zhengzhou as an example, the
warehouse which spreads over 4,000,000 square-meters all around the whole city can store more than
200 ten thousand ton of goods. The Freight Transportation Center, the Highway Bureau Warehouse and
No.05 Warehouse have very strong capacity of storage.Thirdly,the Logistic Distribution Public
Information Platform of integrated information broadband network for Hannan Transportation
Management Work has already been built basically,and it starts to play an important role of the
information online and information sharing all over Henan Province.
2.1.4 The strong support and promotion from the government in Henan Province.For a long time,the
government of Henan Province has paid high attention to the development of the logistics industry.The
government in Henan Province has formed the basic construction thought of modern logistics and trade
as early as the beginning of this century, which is"Develop industry by trade,and promote trade by
industry.Import from the east and go into the west to exploit the market.Develop the exhibition
economy,the chain management and the logistics transportation". After so many years' development,
Zhengzhou Commodities Fair,Henan-Shanghai Economic cooperation, Henan-Guangdong Economic
cooperation,etc. have already become the important great occasions in the world of business and trade of
Henan Province.In October, 2005,the government of Henan Province established and promulgated the
Outline of the plan for Chinese Zhengzhou’s modern logistics center development(2006-2010),and it
becomes the programmatic document that guides the development of the modern logistics in our
province.The Outline point out that Henan will build the modern logistics structure of “One heart and
Three Circles”, “Seven Logistics Engineerings”, “ive District Logistics Pivots”and “Eight Important
Industries of Logistics Development” with Zhengzhou as its centre by 2010.The implementing of the
Outline will take the development of the logistics industry in Henan to the unprecedented height.
2.2 The disadvantage of developing the modern logistics industry in Henan
2.2.1 The outdated and backward concept of logistics. Although the logistics industry in Henan has
made tremendous achievements in more than 10 years of development, it basically belongs to a
traditional logistics, its technical content is low, the managerial cost is high, and the scale efficiency is
low. The causes behind it are associated not only with the outdated and backward concept of logistics,
but also with backword managerial system. Due to lack of correct understanding of the modern logistics
concept, many of the industrial-commercial enterprises in our province go on to use the Production
Modes of “large and comprehensive” and “small but comprehensive”. These enterprises devote
themselves to carry out the integration of production and supply and marketing, the coordination of
warehouse management and Transport management,so the demand of them to professional logistics
services is not intense.In this case,it inevitably causes professional logistics agency not to be fully
utilized. Under the background of he global economic integration, it will certainly make the core
competence of the logistics industry of our province weakened.
2.2.2 Lack of unified planning and normal management.Out of the cause of segmentation formed before,
many logistics infrastructures in Henan disperse in several related industries,such as Railway
Transportation Industry,Highway Industry and aviation industry,etc. They only improve their own
logistics infrastructure construction,each of them programs their own logistics center.They lack
communication and coordination one another,and do not pay enough attention to comprehensive
logistics node. They only improve their own logistics infrastructure construction,each of them programs
their own logistics center.They lack communication and coordination one another,and do not pay
enough attention to comprehensive logistics node. So it has already resulted in many thorny
problems,such as huge waste of human power and material resources, repeated construction and
economic efficiency lowness and so on.At the moment,owing to partition of market and region,
nonstandard of traffic conveyance and loading equipments,the merchandise circulations among logistics
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nodes is slower, and logistics operation efficiency is lower.
2.2.3 The backward technique and equipments,and the low efficiency. On essentially, the modern
logistics is the application of the contemporary high- technology in the commodity circulation. At
present, due to the backward means of transportation and communication,the artificial storage and
transportation of logistics operation,most of the logistics enterprises in our province cannot accomplish
the task of efficient goods distribution. The need of modern logistics development was not taken into
full account in the construction programmings of many cities Narrow urban trunk road and jammed city
traffic will make physical distribution centers have to face the transportation problems.
2.2.4 Deficiency in quality professionals of logistics.The education of logistics distribution in Henan
Province is backward relatively,and logistic specialty and its relative courses were only constructed in
several colleges and universities in recent years. Neither the classification of talents cultivation nor the
talents training scale can satisfy the requirement for talents of logistics development of Henan Province.
The number of Henan’s logistics talents can not reach 2 percent of the demand.The development of
modern logistics industry is in the initial stage in Henan Province.Most of physical laborers are from the
traditional preservation and transportation enterprises and rural migrational workers. As the organization
of labor service is very low,and the labor force is not skilled,they cannot adapt to the modern logistics
development.Therefore it will be the main "bottle neck" restricting the development of logistics industry
in our province without modern logistics talents.
3 The countermeasure suggestions of developing the modern logistics industry in
Henan Province
With advantages co-existencing with disadvantages,and opportunities co-existencing with challenges,it
will shoulder heavy responsibilities for Henan to finish the task of developing the modern logistics
industry. In the course,we should take the countermeasures below:
3.1 Expanding the advanced logistics principle and setting up modern circulation consciousness
At present the modern logistics consciousness of logistics enterprises in Henan is still weaker,these
enterprises are not aware that the perfect modern logistics system can bring the strong market
competition ability and the big profits to themselves. Under such a situation,in order to develop the
modern logistics, the government should strongly expand the advanced logistics principle and make the
enterprises set up the modern logistics consciousness.We must make the enterprises be aware that the
modern logistics is their third profit source and also the only way to have them exist and develop.In
essence, the modern logistics is the application of the contemporary hi-tech in the logistics essentially,its
appearance necessarily brings a series of revolutions of the logistics concept. Therefore,we should fully
realize the urgency of the reform of the logistics enterprises,further renew believes and hold tightly the
opportunity of the logistics reforming.
3.2 Planning as a whole,and speeding the construction of logistics supporting system
While establishing the strategic planning on urban development, we should strengthen the study of the
city chain supermarket and the logistics transportation industry. We ought to combine making urban
strategic planning with the situations and trend of development, and the location of urban of the city
business chain in various places of Henan,forecast scientifically the development scale of the city
commercial chain and logistics,and program rationally the logistics parks of each city in Henan Province
From the perspective of the warehouse facilities, there are plenty of idle warehouses left in the period of
planned economy in every city of our province to wait for exploitation and utilization. It's necessary to
reform appropriately those warehouses to make them become the bases of the logistics enterprises.
Therefore,the exaltation of the profession degree of the city logistics reflects not only the orderliness of
the city logistics development,but also the rationalization of the city industrial structure and the high
efficiency of the logistics process. The correlated departments of different levels governments in Henan
ought to provide the favorable terms of the industry policy,the fiscal and tax policies,city planning,,
human resource and so on,and strongly prop up modern logistics industry to face the challenges of the
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international and domestic logistics tycoons to the logistics industry in my province.
3.3 Deepening the reform, and actively growing the large-scale chain enterprises
In terms of the demand of establishing modern corporate system,speed the pace of restructuring towards
corporation of the chain management enterprise,complete corporation governance structure,Promote
innovative capability and enhance core competence. With capital as link,encourage the chain enterprises
to build up the direct selling chain network of parent-subsidiary company, perhaps develop the specially
permitted management network by the junction of merchandise, transportation, brand, trade,
management technique and so on.Encourage the chain enterprises having the same format or the
resemble management contents to rebuild by the means of annexing, association, property
reorganization etc.,carry out the low-cost extending and the development across the region and make
great effort to promote the market share. To the enterprises developing chain management through
annexing, purchasing,the local government and its related departments should actively support
them.Henan as an important agriculture province,should foster a number of big leading chain enterprises
integrating of agriculture; industry and commerce.
3.4 Speeding the construction of the logistics parks and the logistics centers
According to the demand of the Outline of the plan for Chinese Zhengzhou’s modern logistics center
development(2006-2010)published by the Government of Henan Province,perfect the logistics nodes
and the space arrangement of transporting routes, Construct the high effective logistics networks and
speed up the construction of the modern logistics parks and the centers in our province.Construct five
local logistics pivots in the whole province, with setting up the coordinated and suitably arranged
crossing net system that takes Zhengzhou central logistics pivot for the point and takes
Luoyang,Shangqiu,Anyang,Nanyang and Xinyang ,the five local logistics pivots for the support,and
take nine comprehensive logistics parks and a batch of professional logistics markets for the
container.Then the concentrated and efficient logistics system will be formed and it will be helpful to
lower the logistics cost and raise the operation efficiency.Make full use of the advantages such as the
resources and the industry product of our province,and importantly create the industry logistics mainly
containing grain,cotton,coal,building materials,food,agriculture property,postal service and so on. At the
moment, strengthen the cooperation with the railway and transportation departments,and perfect the
existing logistics network system to make the development and the construction of the logistics
transportation center economize the construction funds and the space resources as soon as possible. Use
social transportation ability effectively and alleviate city traffic jam so as to carry out the intensive
management of the district distribution, and create the top economic efficiency and social performance.
3.5 Developing“the third party logistics”,and realizing the specialization and the socialization of
the logistics industry
As soon as possible build up the social and professional logistics service system taking the third party
logistics enterprises as the leading, grow the large third party logistics enterprises and the enterprise
groups, and make them become the models of the development of the modern logistics industry in
Henan and the resource-integrators of the middle and small logistics enterprise.According to incomplete
figures, 61% of the logistics transportation of the main European enterprises is completed by the third
party logistics companies.The social specialized division will promote the third party logistics to
becomes the indispensable logistics service supplier of the logistics transportation enterprise in our
country in the future. With social continuous development, the modern logistics not only requests the
third party logistics enterprise to become contractor of the logistics business of the customer,but also
demand its service to extend into the Operation of the customer and become the companion sharing
benefits and taking risks with the customer together.Besides,the third party logistics enterprises must
change the traditional management principle, expand the service scope, raise the service quality, in order
to improve the market competition and carry out the purpose of their development and strength.
3.6 Fostering and importing the professional talents of modern logistics
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The logistics is a talent-intensive industry. The management of the logistics enterprises requests plenty
of the professional talents who acquaint with the related service of the production,management and sale,
and hold the marketing skill and the computer network technology.Logistics talent cultivation ought to
be multilayered and various.We should fully mobilize the activity of the enterprise,the school and the
research organization,promote the combination of production,teaching and research and strengthen the
development and application of the logistics technology. We should strengthen to train the existing
talents,including the ones of the logistics management, the logistics technique operation, the
macroeconomic logistics decision and planning, the logistics science research and so on. At the same
time, ,we should attract international and domestic excellent logistics talents to start a business in Henan
by formulating the preferential policy. Besides,Henan Province should enlarge budget devotion, fully
mobilize the activity of colleges and universities in order to solve the problem of lack of logistics
professional talents of our province as soon as possible.
4 Conclusion
To sum up, to developing the modern logistics is the objective request of adapting the socialized mass
production to develop rapidly and the society division of labour subsection continuously.And it also is
the main path to speed the adjustment of the industry structure, push the industry upgrading and promote
the development of the third industry of our province. Logistics industry in Henan has been developing
quickly in recent years,but the development of the modern logistics in Henan startes just now and it will
take a long journey to accomplish the task. Aiming at the existing problems and the disadvantageous
factors in the development of logistics industry in our province, we must make best use of the
advantages and bypass the disadvantages, adopt the correspondent measure,speed up the construction of
the modern logistics park and the logistics center and Progressively Train modern logistics talents. None
but in this way,the modern logistics industry in Henan can get a good and quick development.
，
References
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Science & Technology,2006,1.. (in Chinese)
[2]Liu Zhongguang.the Propose on the Current Situation and the Countermeasure of the Development of
the Logistics Industry[J]. Journal of Henan Business College,2005,5.. (in Chinese)
[3]Zhu Yongming.the Ten Pieces of Countermeasure to Promote the Development of the Logistics
Industry in Henan[J]. Market Modernization,2006,25.. (in Chinese)
The author can be contacted from Email: [email protected]
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