in economics, there is a term called oxtail effect, which refers to a phenomenon of demand variation and amplification in supply chain, that is, when the information flow is transmitted from the final client to the original supplier, it can't effectively enjoy the information, which makes the information distorted and amplified step by step, resulting in more and more fluctuations in demand information.
David, former president of Wal-Mart? Glass concluded: "Distribution facilities are one of the keys to Wal-Mart's success. If we do anything better than others, it is the distribution center." Flexible and efficient logistics distribution system is the core of Wal-Mart to achieve sales volume and low-cost inventory turnover.
Wal-Mart pioneered the unique operation mode of cross-distribution, without warehousing and sorting operations, and directly loaded and shipped when purchasing goods. Form a seamless point-to-point logistics system. The logistics cost of enterprises accounts for about 1% of the total sales, and some food industries even reach 2% or 3%, while the distribution cost of Wal-Mart only accounts for 2% of its sales, which is 5% of its competitors' year-on-year costs.
However, what supports Wal-Mart's logistics model, and transforms its distribution center practice and its excellent logistics concept into unparalleled competitiveness? The answer is logistics information technology. Wal-Mart is the first in the world to realize 24-hour computer logistics network monitoring within the group and establish the world's first logistics data processing center, which integrates procurement, inventory, ordering, distribution and sales. Under the network condition of real-time response of logistics information, members in all aspects of logistics can support each other and cooperate with each other to adapt to the fierce competitive market environment. It is information technology that has become a model of core competitiveness of modern logistics enterprises.
At a time when many local third-party logistics enterprises are struggling to develop, Shanghai Quanfang Logistics, the key factor favored by PepsiCo Group's logistics outsourcing, is still its professional information system for food logistics management and operation, which is tailored by Boko Information, a domestic logistics supply chain management software supplier. Boko Information tailored, modified, debugged and improved the whole logistics distribution information system according to the logistics requirements of PepsiCo Food, realized the digital management of warehousing and distribution, realized the automatic distribution of warehousing and warehousing according to rules, and realized the early warning function of food inventory and expiration date. PepsiCo realized real-time query on the terminal server provided by Quanfang Logistics, and the import, export and storage of Quanfang Logistics were under PepsiCo's control, and the logistics cost and business loss of PepsiCo were greatly reduced.
with the help of information technology, the logistics management system not only reduces the cost of suppliers, provides rational expectations for their production, but also enables sellers and distributors to achieve "zero inventory", reduce inventory backlog and turn corporate income. "Seamless link" runs through the whole process of logistics circulation, and such an optimized system reduces the vicious influence of "bullwhip effect" on market fluctuation. In the pursuit of profitability, Wal-Mart chose self-sufficient logistics, while PepsiCo chose outsourced third-party logistics, which finally responded perfectly to logistics informationization and got rich business returns.
The oxtail effect will be encountered by any large enterprise, which will increase the cost of the enterprise invisibly. If the logistics management software system can be established, the cost will be greatly reduced. Reducing costs means increasing the profit space of enterprises. With the intensification of market competition, logistics management software will be of great use.