Traditional freight giants involved in cross-border logistics mode dilemma

The rapid development of mobile Internet and cross-border e-commerce in recent years has led to profound changes in the entire international trade chain. With the emergence of customized customer demand, flexible supply chain and the increase of fragmented cross-border trade orders, the traditional international logistics mode is undergoing chain reconstruction and mode reform.

A large number of traditional freight giants are actively involved in cross-border e-commerce logistics. For example, DHL, an international express delivery giant, has established a special DHL ecommerce department for cross-border e-commerce business. In China, SANtong yida + SF Express also set foot in the field of cross-border logistics from the current domestic business. Cargo agent giant Robinson and shipping companies, airlines and so on are eager to try.

Giant enterprises involved in the field of cross-border logistics, generally high. Through a series of investments, mergers and acquisitions, or through headhunting agencies to recruit people with high salaries to form a special team to layout the cross-border market. In terms of overall market development and product design and team building, most of the giants also stumbled along the way.


The constraints of the original structure

The evolution and innovation of cross-border e-commerce logistics channel products are based on the changes of e-commerce platform policies and overseas tax and customs system. The cycle of such changes can be as few as a few months or as many as one or two years, which requires cross-border logistics enterprises to have strong market information acquisition ability and the ability to quickly optimize and upgrade product channels.

In order to adapt to the rapid changes of the market, cross-border logistics enterprises need to have efficient internal management and decision-making processes. There are some cross-border logistics enterprises that are developing well in the market at present. Basically, the boss of each enterprise is an excellent product manager. The design and reform of all logistics channels are directly arranged by the owner according to the market situation.

In many traditional trucking giants, the decision-making process within the company is hierarchical. The communication path between the market research department, the product design department, and the final decision maker is relatively long. Much of the market feedback and deployment of final decisions often fails to keep pace with changes in market demand.

In particular, in some Global companies, the head of each region or department often does not have the direct right to change product channels, so the adjustment of many product lines and some innovative practices must be realized through cross-department communication and coordination and step-by-step reporting. The final decision process is very slow.

Traditional freight giants involved in cross-border logistics mode dilemma2

Change does not happen overnight

Many domestic express delivery companies have been listed, most of them rely on domestic e-commerce network procurement development. Domestic e-commerce logistics is a relatively standardized service because it does not involve customs clearance, taxation and language and cultural barriers. Its present stage more competition is cost control and efficiency improvement.

Cross-border logistics involves the docking of various platforms, import and export customs clearance, international trunk line transportation, customs and tax system of destination country, overseas storage and last mile delivery, etc. Compared with domestic e-commerce logistics, the whole chain of cross-border logistics is very long, and there are many uncontrollable factors in each link, and the standardization degree is lower than that of domestic e-commerce logistics.

Many traditional freight companies carry out cross-border logistics, or separate a department in the original company team to test the waters. Recruit a few core executives from some cross-border logistics enterprises in the market to put this matter to the ground. The death rate in new companies and departments is extremely high, with frequent turnover almost every year.

The development of cross-border logistics needs a relatively loose and inclusive innovation test field. The inherent thinking set formed by the employees of the original company for a long time, and the highly standardized process of the original company management mode may not fully adapt to the needs of new business development, and the reform cannot be achieved overnight.


Lack of product view

The primary ability to develop cross-border logistics business is the ability to design product channels. To put it bluntly, only by relying on the company’s existing internal and external resources, to create product channels suitable for market demand is fundamental. Some basic warehouse distribution and system and other hardware and software facilities are still in the back of the row.

Most of the middle and senior managers working in some cross-border logistics enterprises are actually not involved in the design of products and channels. Product channels are basically built by business owners themselves. The owners of many excellent cross-border e-commerce logistics companies are often versatile, skilled in technology, operation, marketing, management and product design.

Many traditional freight giants poach employees from some excellent cross-border logistics companies with high salaries. In a new environment, the first thing we need to face is the ability to integrate resources and design products. Only when we design products with competitive advantages in the market and then invest in market costs can we get twice the result with half the effort.

The lack of product view is a weakness of most freight giants in the process of cross-border logistics transformation. The construction of a mature product system is not just by digging one or two skilled people can be done in the past, must need a platform as the soil, and needs a whole team as the cooperation.


Keep established strengths in perspective

Many freight giant enterprises, in the traditional field of deep cultivation for many years, has indeed accumulated some advantages in resources and connections. The superiority of banker position and market monopoly advantage is retained for a long time.

In today’s cross-border e-commerce logistics industry, resources are of course important. However, what is more important than resources is to build an excellent team with a keen sense of market, a full understanding of customer needs, the ability to reengineer products and constantly refresh self-awareness.

Countries such as Israel and Japan, with few resources, have been able to create dazzling economic miracles. Its core lies in the efficient use of resources and technological innovation. Relying on the output of excellent technology, management, culture, integration of external resources, to achieve their own powerful.

The core of cross-border logistics is the process of constantly updating and iterating the product system, constantly improving customer experience, winning market recognition and establishing brand premium through the efficient combination of upstream and downstream resources in the industry and based on the rapid change of market demand.

This is an era of radical change in the industry, an era of innovation and consolidation, an era of not relying too much on established advantages.

For every enterprise, it is both opportunity and challenge.

All the past is a prologue.

Only innovator advance, only change strong!

Leave a Comment

Shopping Cart