Научная статья на тему 'THE MAIN WAYS TO REDUCE THE COSTS OF CHINA'S CROSS-BORDER LOGISTICS'

THE MAIN WAYS TO REDUCE THE COSTS OF CHINA'S CROSS-BORDER LOGISTICS Текст научной статьи по специальности «Экономика и бизнес»

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Ключевые слова
CROSS-BORDER LOGISTICS / DEVELOPMENT AND PROBLEMS TRENDS / CHINA / LOGISTICS COSTS / OVERSEAS WAREHOUSE

Аннотация научной статьи по экономике и бизнесу, автор научной работы — Drokina Ch.V., Li Jinling

The current conditions of China's rapid economic and technological development are a powerful incentive for the growth of cross-border logistics. Despite the short period of development of China's cross-border logistics, its growth rate and scale are quite high, which is due, among other things, to the development of cross-border e-commerce. The purpose of this article is to highlight the trends and problems of cross-border logistics in China, as well as to suggest the main ways to reduce the cost of cross-border logistics in the country. The paper analyzes the reasons for the high cost of China's cross-border logistics, suggests ways to control costs of the country and solutions to reduce them.

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Текст научной работы на тему «THE MAIN WAYS TO REDUCE THE COSTS OF CHINA'S CROSS-BORDER LOGISTICS»

THE MAIN WAYS TO REDUCE THE COSTS OF CHINA'S CROSS-BORDER LOGISTICS

Ch.V. Drokina, Candidate of Economics Sciences, Senior Lecturer Li Jinling, Graduate Student Southern Federal University (Russia, Taganrog)

DOI:10.24412/2411-0450-2022-4-1-125-127

Abstract. The current conditions of China's rapid economic and technological development are a powerful incentive for the growth of cross-border logistics. Despite the short period of development of China's cross-border logistics, its growth rate and scale are quite high, which is due, among other things, to the development of cross-border e-commerce. The purpose of this article is to highlight the trends and problems of cross-border logistics in China, as well as to suggest the main ways to reduce the cost of cross-border logistics in the country. The paper analyzes the reasons for the high cost of China's cross-border logistics, suggests ways to control costs of the country and solutions to reduce them.

Keywords: cross-border logistics, development and problems trends, China, logistics costs, overseas warehouse.

Cross border logistics refers to the planning, implementation and control management process of the effective flow and storage of goods and information on both sides of the customs border. Combined with the concept and characteristics of cross-border ecommerce and logistics, cross-border ecommerce logistics is defined as: in the ecommerce environment, relying on the Internet, big data, information and computer and other advanced technologies, goods flow from cross-border e-commerce enterprises to cross-border consumers across different countries.

Let us consider the reasons for the high cost of cross-border logistics. They can be summarized into four points [1]:

1. Low turnover. Low turnover rate leads to higher inventory cost, which is much higher than that in developed countries. For whom to produce, when to produce and when to realize the delivery of goods is still the top priority that enterprises need to pay attention to. China's logistics management cost is on the high side, which is generally 5% in developed countries, more than double that in China, which shows that there are still places that need to be improved and improved in many aspects such as management system and mechanism.

2. Transportation facilities. In recent years, the railway freight volume has been lower than 10%, and the highway freight volume is about 77%, and the highway transportation cost is much higher than the railway. Considering the highway, water transportation, pipeline freight rate, transportation volume, loading and unloading cost and the last highway of urban distribution, the total transportation cost of the whole country is 5-6 trillion yuan, which is very close to reality [2].

3. High logistics cost. The logistics cost is generally 30-40% of the total cost, but the cost of China's cross-border logistics is higher, and the logistics industry chain and links are longer, including domestic logistics, domestic customs, international transportation, foreign customs, foreign logistics and other links, especially customs and commodity inspection. The operation is more difficult and riskier, which virtually increases the cost of China's cross-border logistics.

4. Long transportation and distribution cycle. Customers' biggest complaints about cross-border e-commerce focus on logistics, and the long logistics cycle is the focus of customers' complaints. The characteristics of cross-border logistics make the industrial chain and links of logistics longer. Coupled with the cycle of customs clearance and commodity inspection, the cycle of cross-

border logistics in China is much longer than that of domestic logistics. In cross-border logistics, the problem of transportation and distribution time is prominent, ranging from half a month to several months. In peak shopping seasons the logistics time will be longer. Many businesses stop at logistics distribution. Coupled with the time of customs clearance and commodity inspection, the cycle of cross-border logistics is longer, which has become a barrier restricting the development of cross-border logistics in China [3].

To control logistics costs enterprises should conduct several actions:

1. Choose carefully: enterprises can take logistics into account when selecting products, because for products with the same value, the logistics cost of small volume will be lower, and the profit margin will be higher. Therefore, enterprises should consider more between large volume products and small volume products [1].

2. Skillfully designed packaging: according to the difference of different weight and freight, the product packaging size is designed, and then the carton size is designed according to the size of the inner packaging, to study a set of best packing scheme to achieve an optimal state.

3. Be familiar with the transportation route: international express, international special line and postal packet. Each mode has different advantages and characteristics, which requires you to fully consider the timeliness and cost of these transportation modes when selecting products.

4. Cooperate with logistics service providers to obtain exclusive services: for businesses in different regions, different platforms, different volumes and even different categories, the freight costs paid each month are different.

Let us consider some solutions to high cross-border logistics costs. They are:

1. Standardized packaging. Standardize the packing method: the material selection + combination, filler, bubble bag, tape, etc. of the packing box can be tested one by one until the weight of the package is lightened successfully [3].

2. Establish overseas warehouse. The establishment and popularization of overseas warehouses can eliminate the "Curse of peak season", reduce logistics costs, provide distribution efficiency and reduce goods backlog. The so-called overseas warehouse means that the merchant stores the goods in the overseas local warehouse. When the customer has a demand, it will respond quickly at the first time and sort, package and deliver the goods in time.

The advantages of overseas warehouse come from the speed of delivery and customer experience. For example, it takes more than 15 days for a package to be sent from China, and only 3-7 days for a package to be sent from overseas warehouse.

3. Select the appropriate logistics service provider. Enterprises should know that logistics service providers will carry out time limited promotion and other activities for some channels due to the demand for goods volume, and the price will often have a great advantage.

4. Fulfillment by Amazon (FBA) sub warehouse. Although the distribution of FBA warehouses is not based on what businesses want, Amazon will allocate different warehouses according to the sales volume and warehouse capacity of overseas local cities. This method can be really used. After practice, it can basically help businesses save 3050% of logistics costs.

In addition, a little advice to merchants: when sending FBA, the actual delivery quantity should not be too saturated. Generally, the delivery quantity can be controlled at about 95%, because the quantity of FBA sometimes determines the warehouse allocation of this batch of goods, and the cost of sending to different warehouses is lower than that of sending to the same warehouse [2].

To effectively control costs, cross-border logistics companies must formulate a perfect cost control system and formulate corresponding cost control measures in advance, during and after the event. The establishment of overseas warehousing can effectively solve the problem of controlling cross-border logistics costs.

References

1. Li Jinling, Drokina K.V. Analysis of the distinctive features, trends and problems of development of cross-border logistics in China // Multipolar globalization and Russia: Proceedings of the VIII International scientific and practical conference in memory of A. Yu. Arkhipov (Rostov-on-Don, May 20-22, 2021). - Rostov-on-Don: Southern Federal University. - Pp. 379-383.

2. Baozhuang Niu, Zhipeng Dai, Lei Chen. Information leakage in a cross-border logistics supply chain considering demand uncertainty and signal inference // Annals of Operations Research. January 2021. - [Electronic resource]. - URL: https://doi.org/10.1007/s10479-020-03866-4 (date of access: 28.04.2022).

3. China: cross-border e-commerce - conditions and challenges. - [Electronic resource]. -URL: https://www.beiten-burkhardt.com/sites/default/files/downloads/China-Cross-Border%20E-Commerce-Conditions%20and%20Challenges%20.pdf (date of access: 28.04.2022).

ОСНОВНЫЕ СПОСОБЫ СНИЖЕНИЯ ЗАТРАТ НА ТРАНСГРАНИЧНУЮ

ЛОГИСТИКУ КИТАЯ

К.В. Дрокина, канд. экон. наук, старший преподаватель Ли Цзиньлин, магистрант Южный федеральный университет (Россия, г. Таганрог)

Аннотация. Современные условия стремительного экономического и технологического развития Китая являются мощным стимулом для роста трансграничной логистики. Несмотря на непродолжительный период развития трансграничной логистики Китая, её скорость и масштаб роста достаточно высоки, что обусловлено, в том числе, развитием трансграничной электронной коммерции. Цель данной статьи - выделить тенденции и проблемы трансграничной логистики в Китае, а также предложить основные способы снижения затрат на трансграничную логистику страны. В работе проанализированы причины высокой стоимости трансграничной логистики Китая, предложены способы контроля затрат страны и решения по их снижению.

Ключевые слова: трансграничная логистика, тенденции и проблемы развития, Китай, затраты на логистику, зарубежный склад.

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