Download Research on Zhengzhou’s Logistics Industry Development Based on Deepening Labor Division

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Research on Zhengzhou’s Logistics Industry Development Based on
Deepening Labor Division
GUO Sen
School of International Business, Shaanxi Normal University, P.R.China, 710062
[email protected]
Abstract: The labor division plays an important role on the economy. Through reviewing the definition
and development of logistics, using theoretical models, we make a conclusion that deepening labor
division can improve the efficiency of logistics. Analyzing the status and problems of the logistics
industry of Zhengzhou, we conclude that Zhengzhou logistics lack of division and advantages. The
crucial method of deepening labor division in logistics is that support the development of the third-party
and fourth-party logistics. At last, we give some policy recommendations to deepen the labor division of
logistics in Zhengzhou City.
Keywords: labor division, logistics industry, Zhengzhou
1 Introduction
Zhengzhou is an important transportation and communications hub, Beijing-Guangzhou and the
Longhai Railway, Beijing-Zhuhai expressway, and even the Hall, State Road 107 and 310 at this
intersection, with Asia's largest railway marshalling station Zhengzhou North Railway Station and the
country's largest transfer station Zhengzhou East Railway Station, by road, rail, aviation-based
integrated transport system of three-dimensional shape. Zhengzhou's location advantages, the existing
industrial base and vast consumer market to make it unique development of the logistics industry
conditions.
In the international logistics industry is considered to be the arteries of the national economy and basic
industries, and their level of development as a measure of the degree of modernization of a country or
region and is one important indicator of competitiveness, economic development has been hailed as an
"accelerator." Zhengzhou proportion of traditional logistics industry, logistics enterprises are small,
weak, scattered layout, single function; logistics industry concentration is not high, social, professional,
and the low degree of information technology. The economy is not conducive to rapid and sustainable
development of Zhengzhou. To enlarge and strengthen the logistics industry in Zhengzhou, many
scholars put forward their views. Completion of water that (2006), to promote the rapid development of
logistics industry in Zhengzhou, the Government must introduce some supporting policies. Liu Yanliang,
Guo Rong-chao (2008), Zhengzhou logistics industry to actively build a modern logistics system of the
city to speed up the training and development of logistics. LAI Ming-yong, YANG three (2005) with the
new classical economics of the evolutionary path of the logistics labor division, as well as the formation
mechanism of modern logistics. But how to start from the perspective of deepening labor division to
improve the efficiency of the logistics industry in Zhengzhou, promote its development by leaps and
bounds, and truly become a feature of the local pillar industries, few have been addressed, Which is to
complete this task in this paper.
2 The Role of the Labor Division on the Economy and the Evolution of Logistics
Division
2.1 The general role of the division on economic development
2.1.1 Labor division is the source of economic development
Labor division is conducive to social development, development of human society is the history of the
evolving labor division history. Labor division is the source of economic development is economic
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development. Adam Smith (1776), viewed the labor division have a major impact on the economy, is the
source of economic development. He said that the new labor division depends on the expansion of
markets, labor division to promote economic progress and the increase in market capacity, and increase
market capacity and promote a new labor division, labor division is not only because of economic
progress is the result.
2.1.2 Labor division can bring indirect economic
Deepening labor division are likely to get, the higher the complexity of social production, the degree of
economic and social production of the larger roundabout, intermediate goods used to produce more,
leading to the production of the original sector expansion and the proliferation of new industries,
bringing roundabout economy. ? U.S. economist Alan Young (Allyn Young, 1928), viewed not only
dependent on the level of market capacity, the labor division, in turn, the market is by all the decision
whether to participate in the decision-making division, so it is again determined by the level division,
and one of the most important degree of labor division in the form of production to strengthen the
roundabout and the emergence of new industry. Labor division between industries makes the longer
roundabout production chain, but also makes the market size expanded, and expanded market will lead
to further expansion of the labor division.
2.1.3 Division can improve the scarcity of resources
Earth's resources are limited, however, human economic activities are limitless, which makes the
scarcity of resources, more and more serious. Labor division can increase resource utilization, improve
resource scarcity. Of the 20th century, 80 years, Rosen (Rosen), Baker, Bolland, Xiaokai, Wong Yau
group of economists, represented by super-marginal analysis division of the endogenous decision of
individuals selected to analyze the market and price system, how to decide the whole social labor
division. It answers the question, in the scarcity of resources is not fixed and different individual
decision, the market and price system to determine the level of division of the whole society, thus
improving the scarcity of resources.
2.1.4 Labor division can lead to industrial innovation
Increasing labor division allows businesses to concentrate on a particular component or part, in order to
reduce transaction costs, bringing together all relevant production and management company, leading
industry clusters appear. Industrial clusters in the geographical concentration makes the already intricate
relationship between businesses have to imitate each other, even more quickly in the cluster of advanced
technology and knowledge transfer, leading to knowledge and technology spillover effects, the
incremental revenue. At the same time the pressure of competition between enterprises and
technological innovation for the deepening labor division provides the internal driving force. Frequent
exchanges and cooperation could lead to new technologies, the emergence of new methods, and
ultimately lead to industrial innovation.
2.2 The evolution of the logistics division
Logistics industry development trend is the evolution of the logistics labor division history.
2.2.1 Logistics initial stage.
In the production and management, logistics activities to warehousing, transport, procurement, and other
form of partition, and the flow of each firm to take self-sufficient way of independent of each other to
complete the logistics activities.
2.2.2 Internal labor division stage.
With increased competition among enterprises, reduce production costs by way of relying on profit and
more difficult. At this point, companies began to change its internal organizational structure, and found
that those who are seen as supporting the role of warehousing, transportation, procurement and other
aspects are actually closely related, forming a kind of a new labor division, to achieve the Specialization
increasing returns to form by the seller, producer or supplier organizations, production and sales
operations for its own needs for first-party logistics logistics activities and by buyers, sellers for sales
operations organization of logistics activities in the second party logistics.
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2.2.3 Outside the enterprise division stage.
When the professional labor division between the marginal benefit equal to pay the marginal cost of
enterprise management, the internal labor division began to reach equilibrium. If you want to break this
balance, you need to turn to the internal division of the external market, rely on the corporate market
expansion, further deepening the labor division, improve the professional level, thereby enhancing
production efficiency. 20th century, 80's, the new market-oriented labor division organizations - the third
party logistics to grow up quickly, by an independent supply-side and demand-side in the logistics
business, by entering into contractual agreements or form alliances, to provide users with personalized,
contract and the socialization of logistics services.
2.2.4 Industrial division stage.
20th century, 90 years, along with the development of logistics technology, business began with the
labor division and cooperation downstream firm, that the implementation of the logistics supply chain
management. The whole industry chain by deepening labor division between the various enterprises to
improve their professional level, and to improve production efficiency. Meanwhile third-party logistics
enterprises continue to shift their internal division of the external market, in order to raise professional
standards, increase production efficiency. Zuowei the results of modern logistics industry division,
fourth party logistics attendant, "it is a supply chain integrator of internal and complementary service
providers have different resources, capabilities and technology of integrated management, providing set
of solutions.
3 Deepening Labor Division to Promote the Development of the Logistics
Industry and the Status of the Logistics Division in Zhengzhou
3.1 The theoretical model of improve efficiency of deepening the logistics labor division
Because the concept and institutional reasons, most enterprises in Zhengzhou City, take the self-logistics,
third party logistics, and the second party logistics, the logistics division at this stage is to deepen the
development of Zhengzhou, Zhengzhou City, the third party logistics. Suppose there are two firms,
identical in decision-making before the resource endowments are ways to self-logistics. Respectively,
X i , Yi on behalf of the production capacity and the ability of logistics enterprise i, are the level of
resources l i into the local monotone increasing function; set of each firm's total work time is 1. Can be
expressed as
X 1 = l1ax , Y1 = l1ay
(1)
X 2 = l2ax , Y2 = l2ay
(2)
l1x + l1 y = 1, l2 x + l2 y = 1
(3)
Where lix , liy Representing enterprise i to invest time of X, Y, the production of the professional level
of X, Y. a > 1 Representing the degree of economic specialization parameter.
Based on the above assumptions, if an enterprise does not depend on third-party logistics companies, but
by self-logistics to address the internal demand for logistics services, the production function into the
time constraints, has been the logistics business - the production transfer function:
a
1


X i = 1 − ( Yi ) a  , X i , Yi ∈ ( 0,1)


Countdown with the first order of demand X i to Yi
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1
dX i


= − 1 − ( Yi ) a 
dYi


a −1
• ( Yi )
1− a
a
<0
(5)
(5) is the marginal conversion rate of X i and Yi , X i is expressed in the opportunity cost of Yi ,
that is, when an additional unit of Yi , X i must be less volume. Transfer function of the first
derivative less than zero, indicating that it is in the XY plane is a negative slope of the curve.
Second Order with a countdown on Yi to X i , then
d 2 Xi
d (Yi )
2
1
a −1 

a
=
1
−
Y
(
)
i


a 
a −1
• ( Yi )
1− 2 a
a
1
a −1 

a
+
1
−
Y
(
)
i


a 
a−2
• (Yi )
2(1− a )
a
>0
(6)
(6) is a derivative of the marginal conversion rate, the countdown is greater than zero, indicating that
transfer function in the X-Y plane is a convex curve of the original point, indicating that each additional
unit of Y, X decreased less and less, that the marginal increase conversion rate , that can give up
production of more operators X Y, which alone can improve the logistics business logistics productivity.
Time constraints in the ability of the logistics business increased, indicating that the enterprise's logistics
division increased operating capacity. Logistics demand also shows that enterprises should be entrusted
to a third party logistics, not only can improve their production capacity but also to improve the viability
of third party logistics.
3.2 Empirical Analysis of development of logistics industry division in Zhengzhou
Zhengzhou, in front of the deepening development of the logistics division of the way third-party
logistics and the Fourth, then we can use them to represent the degree of development of the logistics
labor division, third-party logistics and the Fourth stage is the development of a high degree of
Zhengzhou City Logistics high level of industrial specialization, and vice versa. Fourth party logistics
and measure the extent of development more difficult, because of their advanced technology and a
high-tech logistics personnel, so we can focus on the logistics industry and technical personnel to
indirect representation coefficients and fourth party logistics the degree of development of logistics, that
is, the disintegration of modern logistics.
The specific formula is as follows:
LQT =
li Li
÷
l L
(7)
Where LQT technical staff for the logistics industry concentration factor, l i for the region's logistics
industry in area i, l the number of technical staff for all areas of the number of industrial and technical
personnel, Li technical personnel for the national number of the logistics industry, L for the country
the number of technical staff in all industries; if the coefficient greater than 1, indicating that the
logistics industry specialization in the region strong, third-party logistics and Fourth above the national
average level of development, logistics and industrial division level deep.
Because the logistics involved in a wide range of industries, the current value of the statistical standards
of logistics have not yet formed a unified standard. We use the transportation, storage and post the data
to represent the level of development of the logistics industry.
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Year
Table I The division level logistics industry in Zhengzhou
number of
number of
number of
national
number of
concentration
technical staff
transportation,
transport, technical staff
coefficient of
and technical
storage and postal
storage and and technical logistics technology
personnel to all
industry technical
postal
personnel all of industr technical
industries in
staff in Zhengzhou
industry
the country
staff
Zhengzhou
technical staff
2007
4 886
285 652
823 000
33 140 000
0.688 76
2006
5 635
269 573
825 000
32 568 000
0.825 19
Source: According to the 2007-2008 "Henan Statistical Yearbook" and 2007-2008 "China Statistical Yearbook"
documentation.
We know from the table, Zhengzhou City, 2006-2007, logistics and technical personnel concentration
were all less than 1, then come to Zhengzhou City, the third-party logistics and Fourth
underdevelopment, that is, Zhengzhou City, the low level of the logistics labor division. So now,
Zhengzhou City, the main reason behind the logistics industry because of its lack of labor division,
industrial and commercial enterprises generally take self logistics mode of operation.
Fourth, the logistics labor division conditions in Zhengzhou conclusions and policy recommendations
4 Conclusions and Policy Recommendations of the Logistics Division in
Zhengzhou
Through this analysis, we have come to deepen the labor division can contribute to the development of
logistics industry in Zhengzhou, Zhengzhou City, the logistics labor division and lack of development of
third-party logistics and the Fourth lag. Therefore, in order to promote the deepening of Zhengzhou, the
logistics labor division must take the following measures:
Firstly, develop the Third and Fourth Party Logistics Industry to promote the development of Zhengzhou.
Speed up the logistics information technology, network construction, the establishment of logistics
information sharing platform. Accelerate service transformation, providing personalized, professional
modern logistics value-added services. Encourage the Zhengzhou Nissan Automobile, Zhengzhou Coal
Mine Machinery Group, the logistics business and corporate divestiture of assets, set up an independent
operation, independent accounting, with a third-party logistics industry characteristics. Yutong Bus
Group, and other conditions to encourage large-scale industrial and commercial enterprises to establish
upstream and downstream suppliers, distributors, strategic alliances between, build an integrated supply
chain to realize the supply logistics, production logistics and distribution logistics combine to improve
overall economic efficiency.
Secondly, accelerate the reform of enterprises, elimination of barriers to enterprise outsourcing logistics.
On the one hand to formulate policies and regulations to encourage companies will now split the
logistics assets and personnel, the establishment of autonomous, self-financing and modern logistics
company or a joint venture of third-party logistics companies logistics company, logistics companies to
participate in the market to promote competition, improve service level. On the other hand to limit the
production company run by logistics or logistics systems to facilitate self-built logistics outsourced to
third-party logistics enterprises or fourth party logistics companies.
Thirdly, industrial and commercial enterprises change their concepts, recognizing the importance of
third-party logistics and the Fourth. Government should strengthen the publicity of modern logistics
management, enterprise aware of its importance. Enterprises should not take but a small and complete
mode of operation should take large special way, so companies should concentrate on their core business
needs to outsource to third-party logistics companies and Fourth Party Logistics companies play to their
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strengths better to advantage.
At last, to expedite the training of modern logistics, the introduction of modern logistics personnel. At
this stage in Zhengzhou City, the early stages of logistics development, lack of personnel. Fourth Party
Logistics Third Party Logistics and distribution system is needed, business management, marketing,
information technology, distribution and network control capabilities with comprehensive high-level
personnel. Therefore, universities and research institutions should be encouraged to grant familiar with
the logistics basic business training, cross-disciplinary capabilities with logistics management and
professional and technical staff, Zhengzhou City, the modern logistics industry to provide personnel
support.
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