Strengthening the Construction of Logistics Parks and Promoting the Competitiveness of Logistics Industry Sheng-fen Li1, Qing Zhang 2 1 2 School of Economics & management, Yan Shan University, Qin Huang Dao, China Department of industrial engineering, Yan Shan University, Qin Huang Dao, China ([email protected]) Abstract - This paper analyzes logistics parks’ necessity for logistics industry. Combining the description of the current situation of our country’s logistics parks, some corresponding suggestions are proposed in order to promote the development of logistics industry. Keywords - logistics parks, logistics industry, develop-ment, suggestions, logistics I. INTRODUCTION As a third profit source, Logistics can not only promote economic development, but also link up the enterprises of the supply chain effectively, so the government and enterprises pay more attention to it. And as a new format in the development of modern logistics industry, logistics parks in China have played an important role in improving logistics organizational level and intensive degree, integrating logistics resources and transforming the mode of economic development. Logistics parks are the gathering places to more than a logistics enterprise in the space distribution sites. It provides comprehensive logistics services of a certain categories and sizes. At present, the development of logistics industry in China is still in the first stage, so it’s very need to integrate the existing logistics resources and logistics enterprises by the form of logistics parks. II. THE NECESSITY OF STRENGTHENING THE CONSTRUCTION OF LOGISTICS PARKS A. Main functions of logistics parks Logistics parks play many roles --intensive role, connected role and environmentally friendly role--in the development of the logistics industry.Firstly, the intensive role can make sure the scattered goods and enterprises getting together. Of course, this is not enough, because it can also provide technology and management, so that we can use this kind of intensive role to organize the goods efficiently. Secondly, as a connecting part, logistics parks realize the connecting of different transports form of the highway, railway, aviation and port. Thirdly, as we all know, the environment is more important for we human being. A growing number of studies of the logistics industry have based on the environment, such as Low-carbon logistics .Building logistics parks can reduce the times of the vehicle’s travelling, as a result reducing noise pollutions and needless exhausts. B. Necessity Logistics parks set market information, modern warehousing, professional delivery, multimodal transport and market exhibition and trading in a body. At the same time, the repeated investment is avoided by gathering numerous logistics enterprises together to improve the resources’ utilizations . As a demonstration project, logistics parks’ mission is setting up the foundation platform and operation base of the modern logistics. It’s good for the development of the logistics industry. III. CURRENT SITUATIONS OF THE DEVELOPMENT OF CHINA'S LOGISTICS PARKS A. Present situation Since1999 the first logistics park was found in Shenzhen, the great achievements of logistics have been made in our county. The situations of the development of China's logistics park are as followed: a. Many kinds of types In our county, the logistics park can be divided into three kinds of business types. The first is distribution model which mainly depends on distributing storing commodities in the internal city. The second is freight hubs type which can connect the transportations of the sea, land and air. The third is comprehensive parks which can offer a variety of logistics services for the enterprises. Among them the third is a popular one. b. Geographic distribution For some reasons--the distinct economic levels of different cities, the various demanding for logistics parks and the different conditions of infrastructure and so on-logistics parks present a characteristic of uneven region distribution . The parks now mainly focus on the developed coastal area, demanding a great amount of things to be exchanged at the same time. While in the Midwest, the quantity of the logistics parks is relatively small, such as Qinghai province . c. Incomes Incomes of our country’s logistics industry most come from warehouse, loading bays of rent, supporting facilities rental and management fees, property management fee, office building rent. Only a handful of logistics parks get benefits from information service, warehousing and distribution of profit value added services. What’s more, there are a few logistics parks make money by the way of braking preferential tax and landing lease or selling against income. These show that the channel our country’s logistics parks’ income source is relatively single, and the facts of management service added value is not high and low profitability. B. Problems With more than 10 years developing, the total number of the logistics park has surpassed the abroad countries’. But in essence, there is a real large gap, especially compared with developed countries in the logistics industry, such as Japan, Germany and the United States. Then we have the opportunity to find some problems existing in the logistics park. a. Lack of planning and cooperation In practice, our country’s logistics park is still fragmented, intersected and divided . These parks cannot produce a linkage between utilities, because they consider things just from administrative regions or even a single logistics park, but not the impacts it can produce among the economic regions it radiates.What’s worse, the require of different regions for the logistics park is not the same, so various kinds of parks appeared leading to the results of repeating investment on the logistics infrastructure, competing with each other on low level and wasting a lot of resources. This phenomenon, on one hand, is caused by the lack of overall planning. On the other hand, it can be attributed to share information with each other inefficiently. In my opinion, lack of the mechanism of sharing information is the main reason so that these parks cannot be cooperative interaction. It’s important to play a role of network system for the isolated parks and to be a node for the regional logistics network system. b. Pursuing for quantities and perfection blindly With the development of the economic, the logistics industry thrives and the logistics parks are buildup quickly. At present, the total number of our country’s parks has been growing quickly, while the quality is beyond our imagination . In the logistics park’s planning and construction, we’d better think of the actual needs of the cities and avoid pursuing for quantities blindly. c. low standard business Most of the domestic logistics parks’ logistics services are limited to provide warehouse and logistics equipment and lease loading bays rent. There is not much different from the traditional storage property and these services can not meet the different demands of these customers. What’s worse, because of crude facilities, low quality of employees and low level informatization, the park can't offer high added value services for multinational companies and other high-end customers causing that the park service does not match the supply and demand. IV. THE WAY TO STRENGTHEN THE CONSTRUCTION OF LOGISTICS PARKS A. Strengthening the government’s influence and function It’s the government's macro planning and strict examination that is crucial for the development of the logistics park. In china, so far, the national logistics park has not been formed. While only a few regions formulate the regional logistics plan. Compared with China, Japan and Germany do a better job, so it’s wise for us to learn them. In Japan, the government divides the parks into three levels--macro plan, medium promoting and micro operation. What’s more, each level’s emphasis and responsibilities are very clear and definite. Usually, a plan of the comprehensive logistics policy points out all the cities’ needs to build a park in macro angle. Then according to the urban plan, the local government decides the locations, quantities, scales and functions of the logistics park and submits the decision to the central competent secretary for examination and approval. Only in this way can the parks be constructed .In Germany, in 1992, the federal government made the plan of establishing 28 parks within the territory of all the Germany. After 3 years later, according to the present situation of the development of the logistics industry, the number of the parks changed from 28 to 39.The logistics network formed by connecting with the ground traffic systems and information systems . From their experience, I suggest that our government should combine with its own resource advantages or location advantage to strengthen the construction of logistics parks and improve logistics parks’ management. On one hand, we’d better pay attention to the unified planning and the supporting policy. On the other hand, we’d better take optimizing the development of the logistics park into account and pay special attentions to the integration of the existing logistics enterprises. B. Improving the concentration of logistics industry One of the logistics park’s function is, in a certain extent, linking the enterprises on the value chain together. It can not only make full use of the enterprises’ expertise and advantages, but also enhance each enterprise’s connection on the value chain. The most important thing is that it benefits to the cost saving by promoting the information exchange between them . Improving the concentration of logistics industry can help information be exchanged among these enterprises. If the enterprises on the supply chain exchange information more conveniently and cooperate more closely, the cost of trade between enterprises will be greatly reduced. What’s more, a logistics enterprise can give full play to its own core business. As for its own weakness and inferiority, the other enterprise may make up. In this way, a great of drawbacks not professional may be avoided and the logistics park will become an organic whole. If all this will come true, a good logistics park should be build up because it can attract this enterprises on this value chain get together to realize its value. preferential policies should be established. During the Twelfth-Five Year Plan period, the logistics industry will face more opportunities . C. Establishing a public information platform Above all, logistics parks are a kind of development model, a space concept and a logistics node of high standard. At present the logistics industry in China is still in the first stage, needing to adopt the form of logistics parks to integrate the existing enterprises and their resources. So it’s obvious that developing logistics parks will become our country’s inevitable trend in the future, as well as the best point and combining site for government and enterprises to jointly promote the development of logistics. With the development of the internet, a public information platform is required. It can provide and integrate the information of every link of the supply chain. It can also provide management service, technical service and trading services. If the Logistics parks want to strengthen their competitive ability, it will be better to promote the establishment of public information platform. It calls for a lot of technology such as Bar Code, Electronic Ordering System (EOS), Quick Response (QR), Database, Electronic Data Interchange (EDI), just-in-time (JIT), Effective Customer Response (ECR) and Enterprise Resource Planning (ERP) and so on. For example, with the thought of the just-in-time (JIT) getting popular, enterprises’ business processes are also adjusted accordingly. Formerly, the commodities was distributed according to enterprises or governments, this is the so called Push model, whereas, now is according to the demands of the customers or markets, in other words pull model. This new model can guarantee that the enterprises make rapid responses just in the needs of the customers. It can immediately organize the order and sent the goods to the customers effectively, thus reducing inventories and the avoidable wastes. From this we know the use of the JIT, ECR and POS and so on can make contributes to the development of the logistics park and the logistics industry. Information is the foundation of all things but the technology is the tool to make sure of delivering information smoothly, so we’d better learn these technologies patiently. Information technology has become one of the important components of the core competitiveness of the enterprises. For one thing, modern logistics emphasizes the sharing, collecting and transmitting information resources quickly and accurately. For another thing, with the aid of the information technology the decision maker can make some decisions well and truly. D. Encouraging enterprises coming in the parks positively The ultimate goal of logistics parks is serving for enterprises in the park. If the logistics parks want to attract corporate coming in, the rules of the access should be made at the early stage, meanwhile a series of V. 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