Logistics Times: The New Logic of Logistics Cost Reduction

The Government Work Report in 2021 puts forward the view of reducing costs by means of reform, which will have a positive impact on improving the economic operation environment and the development of logistics industry by reducing logistics costs, so as to further release the development efficiency of logistics enterprises.

 

Cost reduction is one of the important tasks of supply side structural reform, which is not only the need to create a high-quality development environment, but also the requirement to improve the adaptability of supply and demand. How to effectively reduce the cost, especially the logistics cost, to provide effective support for the construction and efficient operation of the modern industrial supply chain. At the same time, reducing the logistics cost is also to create conditions for the development of logistics service enterprises, which has become the core of the supply side structural reform in the logistics field.

 

At the fourth session of the 13th National People's Congress not long ago, Premier Li Keqiang made it clear in the Government Work Report that China will promote the reduction of production and operation costs of enterprises through reform, in the field of logistics, it is proposed to comprehensively promote the differential toll of expressways, resolutely rectify the facilities and check card points that hinder the passage of freight cars, cancel the port construction fees, and reduce the collection standards of Aviation Development Fund Airlines by 20%. In general, we can see the great determination of the state to reduce logistics costs, and the measures are specific, and include the reform of logistics infrastructure charges at the deeper level. It should be said that the country has further issued a strong voice of reducing costs by means of reform, which will have a positive impact on improving the economic operation environment and the development of logistics industry by reducing logistics costs, so as to further release the development efficiency of logistics enterprises.

 

In 2020, when the State Council issued the implementation opinions on further reducing logistics costs, the author published an article entitled "Reducing logistics costs is not only a short-term task, but also a long-term model innovation", it also pointed out that the state will take reducing logistics costs as the key work of supply side structural reform, forming a new idea of creating environment in the short term and promoting mode innovation in the long term, in addition, the new logic of logistics service and leading the high-quality development of economy and industry was also highlighted in the article, which is of great significance for coordinating the relationship between short-term cost reduction and long-term high-quality development, as well as for building a modern industrial system.

 

Therefore, the idea of cost reduction in promoting the reform of system and mechanism is consistent, and the implementation is gradually increasing. But we should also see that although logistics enterprises are in the key position of supply chain construction, and speeding up the reduction of logistics costs has a positive effect on the construction and stability of industrial chain supply chain, the fact that logistics enterprises are still in the low end of industrial chain is undeniable. Although reducing the cost of logistics operation can reduce the cost of production and consumption, improve the efficiency and efficiency of production and circulation, and cultivate new logistics service demand, which has been proved by a series of logistics cost reduction and efficiency improvement in recent years. However, the lack of bargaining power in cost reduction and the improvement of efficiency are not obvious, which not only affects the technological progress and service innovation ability, but also is in a passive development position due to the fierce price competition.

 

Facing the problem of how to reduce the cost of production and circulation and improve the energy efficiency of their own development, logistics enterprises must sort out the logic of logistics cost reduction and their own development.

 

Speeding up the construction of a new development pattern with domestic general circulation as the main body and domestic and international dual circulation mutually promoting has brought a new idea and logic for the cost reduction and the development of logistics enterprises, logistics enterprises must make adequate preparations for this.

 

First, reducing the cost of production and circulation logistics is the top priority. In building a new development pattern, logistics enterprises must rely on the innovation of technology, mode and format, speed up the innovation of cost reduction path, and constantly improve the ability to serve the construction of modern economic system and modern circulation system. at the same time, they should seize the development opportunity of reducing the production and operation costs of enterprises by national reform, change the past extensive operation mode, actively integrate into the industrial chain, supply chain and value chain, and seek new development of logistics industry in the major change of modern industrial operation mode.

 

Second, we should adapt to the historical changes of the restructuring of China's economic map and industrial layout space from the perspective of building "General circulation " and "Dual circulation", start from the construction of regional logistics system, according to the new requirements of building a modern circulation system of domestic and international service production and consumption upgrading, build an efficient logistics network of "Channel + Hub + Network" at all levels, and promote the development of logistics industry to the construction of logistics system under modern scale economy, and through the development of logistics hub economy, channel economy, platform economy and flow economy, realize the transformation of logistics industry organization mode, and form a new logic for the development of modern logistics industry. (the author is Wang Ming, director and researcher of Comprehensive Transportation Research Institute of National Development and Reform Commission)

 

 (Source: Logistics Times)