Under the stimulation of industry saturation and increasingly diverse market demand, the logistics industry is about to enter the "second half", and an industrial upgrade from traditional commercial circulation logistics to comprehensive supply chain management services is on the rise.

Many analysts believe that traditional point-to-point transportation services can no longer meet the needs of current industry development, and modern logistics is no longer only responsible for the circulation and delivery of products. The integrated supply chain management service system based on logistics, which includes the interaction of information flow, commercial flow, and capital flow, is gradually overturning the traditional business model of the logistics industry and is also the main direction for the development of modern logistics industry.

Traditional logistics shifting towards supply chain management services

He Dengcai, Vice President of the China Federation of Logistics and Purchasing, believes that "the core means of supply chain management lie in 'design, planning, control, and optimization'. Enterprises use information technology to adjust and reshape the entire service process and links, thereby achieving the effect of improving efficiency, saving costs, and providing better service experience for customers. This is an inevitable trend in the development of modern logistics industry under the new pattern."

Taking manufacturing enterprises as an example, due to the inability to effectively share information with suppliers, there is instability in production, supply, and inventory management. Through supply chain management services, information sharing is achieved between manufacturing enterprises and raw material suppliers, and integrated collection, transportation, line side warehousing, and production line distribution services are provided to ensure that raw material suppliers and manufacturing enterprises can meet production and manufacturing needs with lower raw material inventory.

In the consumption and circulation process, supply chain management services, based on the differentiated needs of different users, achieve cost optimization while improving service response speed through more optimized warehouse network layout, distribution/replenishment strategies, and routing planning.

With the development of information technology, some traditional logistics enterprises have been transforming towards supply chain service providers, extending the transportation service chain from point-to-point to the entire supply chain. Participants in the supply chain are coordinated and coordinated to seamlessly connect various links, making the "four flows" of business flow, logistics, information flow, and capital flow more reasonable and efficient. Ultimately, modern supply chain enterprises can achieve "empowerment, cost reduction, and profit" Business logic.