After joining the WTO, modern logistics has become the artery of China's economic development, and a number of successful cases of modern logistics have emerged. "Home Delivery" and "Baogong" are two outstanding representatives of the development of China's modern logistics.
"Home Delivery" was founded in Beijing in 1994. It currently ranks as the leader in China's domestic express delivery industry that provides home delivery. The company has entered a period of rapid development.
"Baogong" was developed from the railway cargo transfer station in Guangzhou in 1992. It is the first service company in the country to provide "door-to-door" services. Morgan Stanley evaluated Baogong as " "China's most valuable third-party logistics enterprise", Baogong is currently focusing on providing integrated supply chain logistics services.
It is indisputable that "Baogong" and "Home Delivery" are heavyweight new stars that have emerged in the development of China's modern logistics, and they are the two new talents of China's modern logistics.
This article brings together the two new emerging technologies of China’s modern logistics, “Home Delivery” and “Baogong”, for a comprehensive collision. This is a very challenging and passionate thing in itself. Through face-to-face comparison, each company can fully display its advantages and characteristics, find shortcomings, and summarize the reasons for its success, thereby providing reference for other companies. The following is a comprehensive showdown between "Home Delivery" vs. "Baogong":
Corporate development strategy: "Genetically modified" Vs "Evolutionary"
The corporate development strategy of "Home Delivery" - genetically modified Model, this company was founded in 1994 when China's modern logistics concept had not yet been formed. It was determined to provoke China's express delivery to catch up with the world level. The ideal of home delivery is to be China's "home delivery". From its establishment to Strategic goals, market positioning, business model, network structure, etc. all draw on the prototype of Japan's "Zhai-Ji-Bin". Even the brand name "Zhi-Ji-Shi" is only one character different from the prototype. No wonder some people call "Za-Q-Bin" a "clone" industry. The development of "Home Delivery" in China is a new enterprise that has injected the excellent genes of Japan's "Home Delivery" and continuously adapted to the Chinese market environment. At the same time, it has also continuously absorbed the genes of advanced enterprises such as UPS, FedEx, and Sinotrans. The key to the success of this model is that the enterprise development strategy must be forward-looking and ensure the consistency of strategic goals in terms of system and mechanism.
Baogong’s corporate development strategy—evolutionary. The development strategy of Baogong Logistics Enterprise Group can be summarized as the three changes of storage and transportation-logistics-supply chain. In the early days of Baogong's development, my country's modern logistics concepts and environment were still immature. Baogong did not have a clear corporate development strategy and no clear positioning for the logistics market. Baogong's development was a method of crossing the river by feeling for the stones. This method makes Baogong understand logistics unknowingly and engage in logistics unknowingly. It is this most common method that has created the most successful third-party logistics company in our country. This kind of enterprise development strategy can be summarized as an evolutionary type. The key points of this model are to constantly discover market needs, adapt to market changes, and constantly revise strategic goals. and market positioning, continuously improve service levels, form competitive advantages, achieve customer satisfaction, and obtain high returns.
Strategic positioning of the logistics market: "Fast logistics" vs. "On-time logistics"
The market positioning chosen by Home Delivery is fast logistics service, that is, door-to-door express delivery service. The positioning of Home Delivery is in It was established when the company was founded. At that time, China's domestic express delivery industry was still blank, and China Post's EMS business was limited to letters; secondly, the choice of this positioning was proven by the practice of Japan's "delivery service". The positioning of home delivery reflects the market differentiation strategy. This strategic positioning provides customers with distinctive logistics services. At the same time, because there are few competitors and low maturity, companies can enter this field at a lower cost and have the advantage of May become industry rule setter. In the process of development, Home Delivery has made a more precise positioning of the logistics service market. First, it has transformed its customer base from scattered customers to large customers. This is to adapt to the changes in China's market environment, policies and regulations, and second, it has given up on international express delivery. The temptation of high profits and specializing in domestic express delivery allowed Zhaijiang to peacefully coexist and develop together with international express delivery giants in the early stages of development.
If the strategic positioning of home delivery is "fast", then the strategic positioning of Baogong is "accurate". Baogong's choice of just-in-time logistics service positioning was gradually determined during Baogong's transformation into a modern logistics enterprise.
Since most of the companies served by Baogong are concentrated in the production and circulation links of the company, it is natural for it to be positioned as a company's supply chain logistics service. From being a student of Procter & Gamble, to establishing an information system, and then to establishing a logistics base, Baogong gradually realized the essence of more accurate, more agile, more timely and more efficient on-time logistics services. The changes in Baogong's strategic positioning have always been centered around The word "accurate", from storage and transportation - logistics - supply chain, from freight forwarding - logistics resource integration, logistics resource integration, this change stems from the continuous understanding, continuous understanding and continuous practice of the word "accurate" . Such a series of accuracy requires Baogong to organize all resources to meet this requirement, and only by establishing a set of logistics warehouses, storage, and transportation based on information systems that integrate business flow, logistics, information flow, and capital flow An integrated modern logistics operation network can achieve competitive advantages through differentiation in strategic positioning, thereby continuously maintaining the status of China's third-party logistics.
Brand Strategy: "Home Delivery" vs. "Baogong"
"I will build a brand even if I lose money." Chen Ping of Home Delivery's persistence in the brand stems from his superiority. Foresight, even at the beginning of the business with 6 people in a car, Zhaijisu designed its own LOGO image, a green round monkey logo, and registered the trademark "Zhaijisu". The registered company took the name "Shuangchen" "At that time, Home Delivery was too poor to even buy a car, but it spent 20,000 yuan on a palm-sized advertisement in the Beijing Evening News. It can be seen that the first stage of the implementation of Home Delivery's corporate development strategy can be seen as Brand strategy. "Home Delivery" has become the most well-known brand in the domestic express delivery industry. The "Home Delivery" logo image circulating in the streets is the company's publicity, which also verifies the power of the brand strategy. Nowadays, when it comes to "home delivery", many people are familiar with it, but when it comes to "double ministers", almost everyone is confused. Nine years later, in 2003, when Chen Ping wanted to change the name of his company to "Home Delivery", he was told that "Home Delivery" had become an industry and could not be registered. Unknowingly, "Home Delivery" became synonymous with the express delivery industry. In the end, the "Home Delivery" head office was registered.
The Baogong brand was created unconsciously. In 1994, the American Procter & Gamble Company needed a logistics partner. Liu Wu became P&G's logistics supplier and established a company called "Baogong" company. The meaning of "Baogong" is to provide storage and transportation services for P&G. It can be seen that Baogong does not consciously regard branding as one of its development strategies. "Baogong" has always been the name and symbol of the company and has grown together with the company. Due to Baogong's outstanding practices in China's third-party logistics field, "Baogong" itself has won the top spot among China's third-party logistics companies in 2002. .
Logistics service: "Network" vs. "Integration"
The logistics service system of "Home Delivery" is characterized by networking. The networked logistics service system is through gradually Build a nationwide network to provide customers with domestic door-to-door logistics services. Networking is the foundation of ZJD logistics services. ZJD has established a four-level network structure, namely subsidiaries, branches, sales offices, and business halls. Subsidiaries are established according to China's administrative regions, branches are located in provincial administrative cities, and business offices and business halls are located in prosperous areas of the city. While establishing a business network, Zhiji Express comprehensively uses various means of transportation, combining aviation, highways, and railways, to establish logistics centers in important transit cities for logistics, and also opens logistics shuttles to achieve effective docking of ground logistics trunk and branch lines. These measures have greatly improved the quality of logistics services.
Baogong’s logistics services are reflected in providing customers with integrated logistics services based on the supply chain. If the network of home delivery is geographically wide, Baogong's integration is vertically deep in business. The core of Baogong's integrated logistics service based on the supply chain is the comprehensive use of modern logistics facilities and equipment, with the information network system as the link. , from the perspective of supply chain optimization, provide customers with comprehensive integrated services including commodity storage, sorting, distribution, processing, packaging, order processing, inventory management, distribution coverage, cross-operations, international container distribution, and information processing.
Baogong has currently planned and constructed 15 logistics bases, which are distributed in the main areas of Baogong's business. These logistics centers or logistics bases can draw on internationally advanced logistics concepts and network information systems to integrate upstream and downstream enterprises in the supply chain. It can reduce intermediate links, improve logistics efficiency, and enable integrated logistics services. At the same time, these software and hardware facilities can also create new competitive advantages for the development of Baogong.
Logistics informatization: “Fang Jin’s ERP” vs “Tang Yousan’s EDI”
The logistics informatization of ZJS was forced out in the second year after the company was founded. Because the volume of home delivery business increased exponentially during the Spring Festival in 1995, but no one could tell exactly how many goods were delivered in a day and how much money he earned, so Chen Ping went to Zhongguancun to save a computer and spent 2,000 yuan to ask a friend to compile it. A computer invoicing software was installed. After that, computers were equipped for finance, warehouse, and acceptance respectively. This is how the logistics informatization of home delivery began. At the end of 1996, ZJS developed the MIS system. In 2001, Home Delivery cooperated with Capitel to carry out online business entrustment. Through network operation, ZAJS felt that the MIS system's scalability, compatibility and network functions could not meet the requirements, so ERP came into ZAJS's sight. It was at this time that ZAJS's information director Fang Jin joined ZAJS. Fang Jin's joining brought ZJS's ERP into the implementation stage. The bidding, design, development, testing and trial operation of the ERP system were completed one after another, and ZJS's logistics information framework was initially formed.
In fact, the informatization of home delivery can avoid detours. As the prototype of home delivery, Japan's Yamato Transportation Company was the first in the world to use the cargo tracking system "Cat System". The first generation of "Cat System" began in 1974 In 1980, it was characterized by a dedicated line connection between the company's main computer and terminals in each business office to realize information processing and sharing. The second generation "cat system" began in 1980 and featured POS terminals, which simplified data input actions. The modern "cat system" began in 1985, focusing on the development of portable POS, so that every driver has a mobile terminal, so that cargo information can be input into the information system at any time to achieve real-time tracking of cargo. The ERP system of Home Delivery is currently only equivalent to Yamato Transport’s first-generation “Cat System”.
Coincidentally, Baogong's informatization was also forced out. In order to meet the requirements of Procter & Gamble, Baogong established a "computer room" with more than a dozen computers in 1995 for document processing. In 1997, Tang Yousan came to Baogong and brought Baogong its first partner-Beijing Yingtai Knight Technology Development Co., Ltd., which developed a logistics information management system based on Internet for Baogong. In 1999 Baogong has developed an electronic data interchange system (EDI) based on the Internet to realize the connection with customer data. This system focuses more on information communication with customers, and develops systems that adapt to the characteristics of customers, thus forming the P&G model, Philips model, Red Bull model, etc. Baogong's Electronic Data Interchange (EDI) holds a leading position among China's third-party logistics service companies and became the driving force behind Baogong's first take-off. At present, Baogong's logistics system has exposed many system models, which are difficult to unify and inconvenient to manage. It focuses too much on inter-enterprise information systems and neglects internal information systems. For this reason, Baogong began to implement ERP systems and develop warehouse management systems. .
Enterprise system: "joint-stock system" vs "sole proprietorship"
In the "entrepreneurship" stage, "home delivery" and "baogong" are still small enterprises, and the operators are often also the owners. , so there is no separation of ownership and management rights. When an enterprise enters a period of rapid growth, if modern corporate governance mechanisms are not introduced in time, the development of the enterprise will be impacted by capital, causing the enterprise to die prematurely or deviate from its strategic development goals. Therefore, establishing a well-functioning corporate governance mechanism will ensure The smooth realization of corporate strategic goals.
"Zhaijisu" took the lead in this regard. In March 1995, the second year after its establishment, Zhaijisu, which was deeply short of funds, expressed its desire to introduce foreign investment when the Japanese Transportation News delegation visited China. Will.
Subsequently, Toshio Kobayashi, the president of Ichijo Co., Ltd. in Nagano Prefecture, Japan, stood out among the five or six Japanese companies interested in investing and injected more than 1 million yuan in capital. Shuangchen Company changed from a private enterprise to a Sino-foreign joint venture, and the company name was also changed to "Shuangchen One City Express Co., Ltd." Since then, Toshio Kobayashi invested an additional 2 million yuan in 1998 and an additional investment of more than 3 million yuan in 2001. As the development of Zhaiji Express entered the fast lane, company restructuring became a major development issue. At the end of 2002, the company introduced strategic investors, and Beijing Wumart Commercial Group became a new shareholder, increasing capital and shares by 25 million, completing the first step in the enterprise's reform to a joint-stock system. , in 2003, the restructuring of Home Delivery was fully launched, and it strived to be listed on the Hong Kong GEM in 2004.
Baogong has now begun corporate restructuring. Since Baogong was previously a family-controlled company, it is difficult to transform into a joint-stock company. The first step is to implement the management stock ownership plan, which has been completed. The second step is to introduce strategic partners, and the third step is to realize a joint-stock company with Liu's control, cooperative companies' shares, and employee shares, and strive to go public.
Leader: "Chen Ping - strategizing" vs "Liu Wu - step by step"
The success of an entrepreneurial enterprise must be accompanied by the story of an entrepreneur, and The characteristics and personality charm of legendary entrepreneurs will leave their mark on the development of enterprises.
Chen Ping, the leader of "home delivery", was looking for dreams and opportunities to realize his entrepreneurial dream when he went abroad to study in Japan. By chance, he experienced the flexible and thoughtful service of Japan's "home delivery", and thus China was born. "Home Delivery". Before the official establishment of Home Delivery, Chen Ping had repeatedly planned the development plan of the enterprise in his mind. After the establishment of the company, it has steadily advanced according to the predetermined strategic goals. The plan in his mind is becoming reality step by step. Up to now, in the major issues related to the development of the enterprise, There have been no obvious mistakes in strategy or tactics, and no major adjustments have been made. It is expected that the country will continue to move forward on this track for a long time to come. The success of the home delivery development strategy proves Chen Ping's unique vision and foresight. As an armored soldier, if he could sum it up in one sentence, it would be "strategize and win the future."
Liu Wu, the leader of Baogong, has been engaged in traditional storage and transportation work since 1985. He is a commander who has gained experience in the transportation industry and has a keen vision and grasp of business opportunities. The ability to capitalize on fleeting opportunities. It can be seen from Baogong's development history that Baogong's business environment is no different from other companies. The business Baogong encounters has been encountered by other companies. What makes Baogong stand out? Liu Wu has this kind of power to turn decay into magic. Please see Liu Wu's three golden tricks: First, through working in a state-owned enterprise, Liu Wu deeply felt that there were many areas for improvement in traditional storage and transportation, so In 1992, it contracted a railway freight station and launched the "24-hour service" at that time to attract customers and create many business opportunities. The second time, in 1995, Liu Wu worked for P&G in storage and transportation. Through cooperation with P&G, he felt the great charm of modern logistics, so he took this as an opportunity to promote the transformation of the company to modern logistics. This transformation created the development of modern logistics in China. Many firsts, it also brings greater development prospects to the company. For the third time, in 2002, the development of the modern logistics industry in China has become a prairie fire. Hundreds of thousands of logistics companies are competing for success. Liu Wu deeply felt that it was difficult to maintain a competitive advantage by relying solely on the logistics operation method of integrating resources, so he once again turned to supply chain integration. Transformation, in this transformation that is being implemented, uses the huge logistics base as the carrier, the advanced logistics information system as the link, and the supply chain integrated service as the core to build an industrial base group integrating production, supply and marketing. Become an insurmountable strategic fortress for competitors. Liu Wu, a leader who had experienced hundreds of battles, knew how to use troops. "Know yourself and the enemy, and you can fight a hundred battles without danger" created the legend of Liu Wu Bubu.
Innovation ability: "Independent" vs. "Extroverted"
Compared with Baogong, Zhaijiu has already planned its development model, so its innovation is mainly in the company. business level and independently complete innovation. In the development process of home delivery, the method of diagnosis-improvement-innovation was adopted to solve the problems that occurred in the work, and there was a lack of major innovation in theory, technology and method.
Since Baogong explores and advances in development, innovation is particularly important to Baogong.
Baogong has adopted the approach of bringing in and going out in terms of innovation. First, it has widely attracted domestic and foreign experts to participate in discussions and borrowed external brains to make suggestions for the company. Baogong has funded and held international high-level conferences on logistics technology and management development every year since 2000. seminar. The second is to take the initiative and invest 1 million yuan every year to establish the Baogong Logistics Award Fund. At the same time, it has established the "Baogong Logistics Scholarship" in more than a dozen universities across the country. Baogong also cooperates with Tsinghua University Zhuhai Science and Technology Park, co-founded by *** Logistics Management Training Center, and started enrolling students in 2003. Currently, Baogong is actively applying for a logistics postdoctoral mobile station. Baogong's innovation strategy has achieved great success. This is reflected in the fact that, firstly, Baogong provided a theoretical basis for the two transformations by borrowing external brains; secondly, by building a nest to attract phoenixes, Baogong's logistics reward fund played a bridge role, and various logistics professionals came in droves to enhance the The third is to enhance the company's influence in the logistics industry, causing more researchers to pay attention to Baogong and study Baogong, which improves Baogong's reputation in China's logistics field and contributes to Baogong's future development. Create a good external environment.
Future development potential: "Express delivery" vs "supply chain"
The home delivery market is positioned in express delivery. If the entire logistics market is compared to a "cake", then express delivery is on top of the cake. Cream, the items delivered by express delivery service are small in size, light in weight, high in technology and high in added value, and are "leading the pack" in the field of logistics. The tempting cake of China’s express delivery industry has been freshly baked.
In order to prevent Home Delivery from being eliminated in such fierce competition, Chen Ping created three magic weapons for Home Delivery. The first is "Don't talk and practice", which means talking less and doing more, and not exposing yourself prematurely. To competitors, concentrate on making the company bigger and stronger; the second is to avoid the reality and replace the illusion. The strength of multinational logistics companies is international express delivery, so home delivery should avoid its sharpness and specialize in domestic express delivery; the third is to join forces vertically and horizontally, in order to quickly occupy the market and expand Due to the size of the enterprise, Zhaijiu has widely attracted logistics companies to join and cooperate. These three magic weapons have enabled Zhaijiu to successfully survive the entrepreneurial period and move towards a period of rapid development. It has now become a giant in the domestic express delivery field.
The supply chain positioned by Baogong is also a very promising field of modern logistics services. However, it is impossible for all enterprises to enter the supply chain. The demand for supply chain logistics will gradually increase in China. Released, this demand will likely be gradually realized in the following order: multinational companies coming to China → Chinese international companies and commercial circulation companies → domestic large-scale manufacturing companies → domestic large-scale raw material production companies → domestic small and medium-sized enterprises. Secondly, the formation of a supply chain is a gradual process. It takes several years from the time there is a demand for a supply chain to the growth and maturity of the supply chain. Due to the professionalism and regional nature of supply chain logistics services, the business scope of companies that provide supply chain logistics services cannot be expanded arbitrarily. Competitors will inevitably participate in areas and business fields that they cannot serve, and a battle will inevitably arise. The supply chain logistics war is about to break out.
Conclusion
Through case analysis of successful companies, we interpret the secrets of success and answer a series of major questions in the process of transforming to modern logistics, that is, modern logistics is a hyped "logistics bubble" "Or is it an emerging industry? Should we develop modern logistics? How to develop modern logistics and other issues.
It can be seen from the cases of Home Delivery and Baogong that their period of rapid development coincided with the rise of my country's "logistics craze" in recent years. In the comparison of enterprise development potential, these two enterprises not only They have tasted the cake of modern logistics and each has opened up a broad market space. This fully proves that the modern logistics industry is not a castle in the air, but a potential market with huge market space. This market is potential and needs enterprises to discover and explore. Digging.
In terms of how to develop modern logistics enterprises, Zhaijiu and Baogong have given us profound enlightenment from different perspectives. From the perspective of corporate development models, Zhaijiu’s strategic foresight and Baogong’s strategic flexibility each have their own advantages. When an enterprise formulates its development strategy, the decision-maker of the enterprise must be far-sighted and formulate a mid- to long-term logistics development strategy. This strategy should reflect the enterprise's position in the future competition in the modern logistics market. The development strategy actually reflects the decision-making strategic intentions and determination. Of course, if you have the strategic foresight of home delivery and then use the strategic flexibility of Baogong in development, it will be a perfect development strategy model.
Carry out market segmentation and choose your own market positioning, which requires the unique vision of decision-makers. Opportunities always come to those who can understand the market development trend and are good at seeing the essence from the appearance and grasping the pulse of the market. , is the secret to choosing market positioning. Both Home Delivery and Baogong have this ability and have firmly grasped it.
Brand, logistics services and informatization are the core contents of the strategic implementation of modern logistics enterprises. These contents are also indispensable in the development of modern logistics enterprises. In the implementation of brand strategy, the practice of home delivery has provided us with useful inspiration. Baogong's great success in informatization has made us feel the power of informatization in logistics services. In terms of logistics services, home delivery and Baogong Each has shown its talents and achieved strategic advantages in building a logistics service network and establishing an integrated logistics service base. These practices are worthy of our reference.
Enterprise systems, innovation capabilities, and leaders are all powerful guarantees for the development of modern logistics enterprises. Whether an enterprise can develop smoothly and sustainably is closely related to these aspects. Home Delivery has made useful explorations in introducing modern enterprise systems, while Baogong has enhanced corporate innovation capabilities. In China's logistics industry, Chen Ping and Liu Wu will be the leaders of Home Delivery and Baogong for a long time to come. People, these two top experts in China's logistics industry, will witness the glory of China's modern logistics industry and continue to write the legend of home delivery and Baogong.