How to write a warehouse strategy for a food business

Strategic ideas for the development of warehousing enterprises

Points for the development of warehouse enterprises to formulate a strategy

I. Points for the formation of the development of strategic ideas

1. Goal setting for the development of the enterprise;

2. The strategic system of the enterprise;

3. The core development strategy of the enterprise;

4. The core competitive strategy of the enterprise;

5. The way to implement the strategy.

II. Management support for development strategy

1. Asset and industrial reorganization;

2. Enterprise's strategic system;

3. Enterprise's core development strategy.

Four Typical Warehousing Enterprises Practical Cases

I. Bonded Warehouses

We have focused on the research of Fubao Seger Industrial Co. Fubao Seger has 28,000 square meters of bonded warehouse in Shenzhen Futian Free Trade Zone. Futian Free Trade Zone is characterized by an entry/exit channel to Lok Ma Chau, Hong Kong (Channel 1) and an entry/exit channel to Shenzhen City (Channel 2). Inbound and outbound goods only need to be filed with the Customs, while inbound and outbound customs clearance requires customs declaration. Customers can take advantage of the policy of inbound and outbound customs clearance in the bonded zone to realize the benefits of delayed tax benefits for the whole batch of inbound and batch of outbound customs clearance, or vice versa for early tax refund.

FuboSegal's main customers include nearly 100 foreign-funded and Hong Kong-funded logistics companies and manufacturing companies in the Pearl River Delta region, such as Ricoh International Transportation Ltd. of Japan, Huali Shipping Co. For these enterprises, Fubo Segal provides bonded warehouses for long term and short term leasing services, and also engages in value-added logistics services such as distribution processing.

FuboSegal employs about 40 people. These include 5 managers, about 10 forklift workers and porters, and about 20 other customs brokers, inspectors, customer service personnel, warehouse managers, and handymen (including janitors and equipment maintenance personnel).

Fubo Segal's profit model is to rent warehouse space as the core of the logistics service program charges. The basic charge is the warehouse rental fee. In addition, there are charges for loading, unloading, merging/consolidating containers, labeling, shrinking/punching of goods, changing packages, simple processing (such as subcontracting, reassembling packages, simple assembly, etc.), as well as charges for services such as customs clearance and inspection on behalf of customers. The main expenditures are labor, utilities, storage materials and repair and maintenance costs due to equipment depreciation.

Fubo Segal's warehouses are mainly flat warehouses, with some storage areas using three-dimensional racking. Pallets as the basic handling unit, with forklifts (as well as the ground cattle) for inbound and outbound handling and warehouse handling. The first floor is the cross-stocking area with five gas-powered forklifts. The second to tenth floors are storage areas with one or two electric forklifts (powered by batteries) on each floor. There are two large freight elevators going up and down. There are more than a dozen spaces on the platforms where the vehicles park, and they can park container trucks, box trucks and many other types of transportation vehicles.

FuboSegal is still an order-driven, business-centered warehousing service company. It has not yet transitioned to a customer service focus. Promoted by the company's management, the company's entire staff has established the concept of total quality management, and ISO9000 quality management system requirements to establish a standardized quality documentation system. However, the company has not formally applied for or passed the ISO9000 quality system certification.

Fubao Sage and its parent company Sage Storage & Transportation Co. developed a management information system based on the C/S system in 1999, and then gave up using it due to inaccurate settlement, poor system flexibility and inability to adapt to business changes. Since the end of 2002 to the end of 2003, Saige Storage & Transportation Co., Ltd. and Saibon Software cooperated to develop a set of brand-new, Web-based B / S system of logistics management system, covering the transportation business, warehousing business, financial settlement and other aspects. Thus realizing the customer online order, online query order processing status, inventory status, billing details, etc., and can do real-time settlement and reservation settlement.

The biggest problem faced by Fubo Segal is how to improve the return on assets. The fixed assets of bonded warehouses are more than 80 million dollars, while the annual profit is less than 5 million dollars. Compared to the transportation business (where the fixed assets of container vehicles are just over $10 million and contribute more than $20 million in annual profits), the return on assets is too low. Improving the morale of bonded warehouse district staff, trying to enhance the service consciousness, focusing on quality improvement; increasing the proportion of value-added logistics services, significantly increasing the source of income other than warehouse rental fees, gaining more high-quality customers with a high profit contribution rate, and eliminating the low-profitability Class C customers are all possible ways to solve the problem.

In order to enable the company to get to the next level, improve the return on assets of bonded warehouses and pass ISO9000 certification in due course. Fubo Segal wants to continuously improve its management processes by internally realizing total quality management, and to assist management through information technology. The ideas they are considering coincide at many levels with those held by Deming, the quality management guru we explored earlier. Firstly, they wish to establish a modern job training system and a rigorous education and training program. Then through continuous training and process monitoring in the department, to eliminate the gap between internal departments, to enhance the awareness of all employees to take the initiative to serve customers, and to eliminate the fear of employees for the management, and dare to put forward their own views and opinions; gradually eliminate the obstacles to the smooth work of grassroots employees, as well as the quantitative assessment indicators; and through the active participation of the top leadership, to form a sense of planning, execution, checking, and management, to ensure the quality of the company, to ensure the quality of the work, and to ensure the quality of the work. And through the active participation of the top leaders, a management culture of Plan, Do, Check, Act (PDCA) is formed within the enterprise, which is recognized by all employees. Externally, the company develops more high-end customers, establishes a customer-centered awareness (strongly focusing on customer satisfaction), and puts forward the slogan of "doing service before customers think of it". Through the internal management process to explore potential and external customers of high-quality value-added services to obtain a new competitive advantage.

Two, urban distribution centers

We focused on the research of Hangzhou Fuzhi Logistics Co. Fuzhi Logistics officially put into operation in September 2001, with a registered capital of 50 million yuan. Fu Ri Logistics has the largest urban FMCG distribution warehouse in Hangzhou. It has built 140,000 square meters of modern room-temperature platform warehouses on 300 acres of rented land next to Xia Sha Road in Hangzhou, and is building a larger 600-acre logistics park in Jiubao Town. Fuzhi Logistics is already the main warehouse in East China for many fast-moving civilian consumer goods, and its influence and radius of radiation are still expanding.

Furi Logistics, by introducing advanced western third-party logistics business concepts and hiring professional manager Wang Wei'an, has successfully explored the neighboring logistics market with Hangzhou as its core, and has now become one of the largest third-party logistics enterprises in Hangzhou. Fu Ri Logistics' main customers include large household appliance manufacturers (Kolon, Little Swan, Electrolux, Shanghai Sharp, LG, Sanyo, etc.), liquor producers (several sub-brands of Wuliangye, Jinlufu, etc.), convenience food producers (e.g., Master Kong, Uni-President, etc.), and other fast-moving consumer goods manufacturers (Jinguang Paper, Vinda Paper, etc.). Sales chains such as Gome Electrical Appliances and Yongle Home Appliances, and supermarket chains such as China Resources Vanguard have also entered into strategic partnerships with Fuzhi Logistics.

Fuji Logistics' business model is distribution-based warehousing services. Manufacturers or large wholesalers store goods in large quantities in the warehouses of Fuzhi Logistics by means of trunk transportation, etc., and then distribute them in small quantities by small trucks to retail stores or places of consumption in accordance with the sales demand of terminal stores. At present, the volume of goods stored by Fuzhi Logistics for each customer unit reaches 250 million yuan per day. Recently, this company has also expanded its storage capacity by 60,000 square meters, bringing the daily volume of stored commodities to about 1 billion yuan. According to the monthly flow of 3 times, the company's monthly material flow of about 3 billion yuan, its general manager Wang Wei-An use of advanced management concepts, making the Fuzhi Logistics has become a modern logistics industry in Zhejiang and even the Yangtze River Delta region of a "dark horse". Fuzhi Logistics provides customers with warehousing, distribution, loading and unloading, processing, collection, information consulting and other logistics services, the source of profit, including warehouse rental fees, logistics and distribution fees, distribution and processing service fees, etc., the business flow chart is as follows:

Fuzhi Logistics warehouses are all flat warehouses. Some of them use pallets and forklifts for in-store handling. A small amount of manual handling is used. The platforms are designed in a unique way, suitable for fast loading and unloading operations of large container trucks, flatbed trucks, and small box delivery trucks.

Unlike the business development is booming, the information technology of the Fuzhi Logistics has been in a relatively primitive stage, only a simple stand-alone order management system to manually process the documents. With the current warehouse development trend and management capacity of Fuzhi Logistics, as well as the requirement to provide more value-added services for customers, its logistics informationization bottleneck seriously restricts the business development of Fuzhi Logistics. Until recently, it started to develop a logistics informationization management system that meets its own business characteristics. Fuzhi Logistics has formed a virtuous cycle in business and customer sources. How to rapidly expand the storage area, improve the distribution order processing capacity, and further improve the regional influence has become the focus of the decision-making level of the Fuzhi Logistics Company.

Furi Logistics has begun to pay close attention to customer needs, and for customers to plan a variety of value-added services, looking forward to the typical warehousing distribution centers began to third-party logistics enterprise development. From the simple mode of operation to a new stage of scientific management, the management of the Fuzhi Logistics began to realize that rely only on the advanced thinking of the decision-making level is completely inadequate, at this time the introduction of the management concept of total quality management and the implementation of the ISO9000 quality management system, to ensure that all levels of management personnel and grass-roots level can be strictly in accordance with the requirements of the total quality management, and in the information system to help make the The management system of Fortune Logistics can be up to a high level of scientific management.

Three, transit distribution warehouse

We focused on the study of Yiwu City, Zhejiang Province, the United Transportation Development Corporation Transportation Branch (i.e.: Lianfa Express) of the transit warehouse. Yiwu City, Yiwu City, Union Transportation Development Corporation is a collection of all the city of Yiwu City, Union Transportation Line

Yiwu City, Union Transportation Development Corporation is a collection of all the city of Yiwu City, Union Transportation Line point of development, operation and management of a comprehensive enterprise. The company of Yiwu City, all the provincial lines of the various consignment points just have the right to manage without ownership, and does not own the fleet of out-of-province transportation. However, its subordinate Lianfa Express directly operates the provincial transportation business, and almost every county and city in Zhejiang Province has a cargo receiving and dispatching point to realize fixed-point, regular receiving and dispatching of goods. Through its own transportation power, Lianfa Express can complete the delivery of goods between any two counties and cities in Zhejiang Province in no more than two days. The goods sent out of the province need to be transferred through Yiwu, and handed over to the consignment points located in Yiwu directly to more than three hundred cities across the country to complete the entire transportation. Therefore, Lianfa Express has a transit warehouse at its headquarters in Yiwu to realize the transfer of goods between different transportation routes. Due to the short stay of goods in the transit warehouse (usually only a few hours), so there is basically no formal inventory management and warehouse management (such as more formal inventory, moving warehouse operations). Warehouse is also used at both ends of the permeable type similar to the Cross Decking (Cross Decking) design, there is no detailed division of the warehouse. As in Yiwu to undertake cargo, running domestic long-distance trucks are flatbed trucks and other non-containerized models. Usually do not use pallets as the basic logistics unit. Also basically do not use forklifts, but mainly manual handling. In terms of quality management, there are standardized operating procedures, but they are rough, not flexible and detailed. Over-emphasis on low-cost competition and no attention to customer service. Not yet considered through the ISO9000 quality certification system to carry out and implement.

The management of Luen Fat Express believes that the biggest problem facing the company is that the business load is far from keeping up with the capacity. There is a need to dig deeper into cargo sources and high-quality large customers. The potential of the capacity resources that Luen Fat Express already has and can integrate is huge. Specific measures include changing the previous ideological concept of waiting for customers to come to the door, strengthen the sense of service, reform of the personnel system of state-owned enterprises, etc. (Yiwu Liantuo Transportation Development Corporation is a state-controlled enterprises).

Four, the unified warehouse **** with (VMI) services

We focused on the research of Taiwan's World Peace International Corporation (WPI) Suzhou Branch.

With a large number of Taiwan-funded and foreign-funded enterprises stationed in Suzhou Industrial Park, Suzhou has formed a huge ecological cluster of enterprises in electronic components, chips, computers and computer accessories and other hardware products. There is a many-to-many complex supply and marketing relationship between the enterprises. In this area, there is a basic law, that is, as the leading enterprises move in, will drive more and more upstream and downstream enterprises to settle in Suzhou. Thus, Suzhou's group advantages in areas such as IT hardware products and electronic components are becoming more and more obvious.

These enterprises have special requirements for logistics services, the reason is that with the refinement of the division of labor, these electronic products, components, raw materials and finished products are increasingly varied, short cycle of replacement, high unit value of goods, rapid turnover. Manufacturing enterprises in order to reduce costs as much as possible, to reduce the inventory of capital occupation, these enterprises are emphasizing just-in-time production (JIT) and zero inventory principle, requiring suppliers to small quantities, multiple batches, with the production process of frequent supply.

In order to meet these requirements, the unified warehouse **** distribution (also known as: supplier inventory management, VMI) came into being. It is characterized by a number of suppliers *** with the lease of a public **** warehouse, for one or more manufacturing enterprises to supply. When a manufacturing company to a number of suppliers to purchase, the order can be processed in a unified manner, so that in the completion of the centralized picking and transportation of many to one and single at the same time, to achieve one-to-one between the manufacturing company and the supplier of the monthly settlement, which greatly reduces the overall cost of transportation and transaction costs, to meet the manufacturing company's just-in-time production (JIT) needs.

Taiwan's Shiping International Corporation is a leading IT channel/distributor in Taiwan. Following the partnership that already exists to meet the logistics needs of Taiwanese companies in Suzhou, we have developed logistics services in Suzhou centered on unified warehousing*** distribution type warehousing.

SIPC's customers include a large number of Taiwanese companies such as BenQ and Hi-Tech (Suzhou), as well as multinational giants such as Intel and AMD.

The public **** warehouses operated by SPI are semi-automated three-dimensional warehouses with pallets as storage units. It fully utilizes barcode scanning and reading technology for documents, storage spaces and goods, and has an automated assisted picking system.

Siping International has rigorous and meticulous business processes and warehouse management specifications, and strictly in accordance with the specifications in the ISO9000 quality management system for total quality management. There is a high degree of standardization and a strong capacity for continuous improvement.

Shiping International has applied the software products of a well-known foreign warehousing software enterprise for information management. The relevant employees have been quite skillful in the use of the system.

Currently, the company is facing the problem of how to expand at a low cost in order to further expand its warehousing capacity and improve the processing capacity of the information system to cope with the growing customer demand.

SWOT analysis

Strengths: The four typical warehousing service companies mentioned above have certain first-mover advantages. Because these four enterprises are engaged in professional warehousing services earlier in the country's third-party logistics enterprises, and took the lead in their respective corresponding segments, now in the market share, visibility, scale of business, efficiency indicators and other aspects have achieved a large leading position. For the vast majority of latecomers, it is necessary to pay much greater efforts to achieve the same status of these four enterprises;

Weaknesses: compared with similar enterprises in developed countries, the above four typical warehousing enterprises are weak in overall strength, small size, automation is not high, the degree of standardization is not high, low level of information technology of the customers served, resulting in low level of information exchange, as well as their own management level of automation. exchange level is low, and their own management level, service level and service quality is relatively backward;

Opportunity: With the continuous growth of the domestic economy and the rapid development of domestic manufacturing enterprises, and more and more enterprises recognize the superiority of third-party logistics enterprises and professional warehousing services, the four typical warehousing services enterprises face greater market space and opportunities for continued rapid expansion. Market space and opportunities for sustained and rapid expansion;

Threats: According to China's accession to the WTO agreement, China will gradually open up the field of third-party logistics services, including warehousing, domestic transportation, courier services, etc., to foreign competitors. The multinational giants that have been eyeing the domestic logistics market, such as UPS, FedEx, DHL/DHL and other logistics companies are bound to enter the domestic market on a large scale in the near future, grabbing a sizable market share, and ultimately threatening the survival of the above four companies.