Research Of Cost Efficiency On Chinese Listed Logistics Companies

Modern logistics is widely considered to be the important profit source for enterprisesexcept material consumption reducing and labor productivity improving. Governments at alllevels and enterprises regard logistics as an important means of improving competitivenesscollectively. But in recent years, with the labor contract law enacted, fuel prices rising, landuse policy tightening and financial crisis, Chinese logistics enterprises are facing fierce marketcompetition and operating costs rise significantly. Development mode and strategy based onthe cost advantages are experiencing unprecedented challenge.Adjusting and revitalizing logistics industry is the necessary guarantee of the economicdevelopment. It is the key problems for governments, enterprises and academic fields thatlogistics enterprises reduce the operation cost and maintain competitive advantage. This thesishas given full attention to the cost efficiency and competitive advantages of Chinese listedlogistics company. Based on the financial panel data of32enterprises during the time between2000-2009, the new cost efficiency model in Data envelopment analysis method and the metafrontier approach which considered the technology gap among areas et al are jointly appliedin investigation the cost efficiency of the listed logistics company.And the changing rule andconvergence trends are studied.Also the relationship among strategy,cost efficiency andfinancial performance are investigated. The aim is to reduce costs and improve competitiveadvantage for logistics enterprises and provide theory support and empirical basis for logisticsindustry policy formulating.The main discoveries include:(1) The cost efficiency of32listed logistics companies are quite low with both DEAmenthod and METAFRONTIER method, but have great improving space. Based on the resultsof DEA method,32companies could be both divided into3clusters by grey constellationclustering analysis in view of the cost efficiencies during2006and2009.(2) The article first evaluates the cost efficiency of logistics listed companies in Chinesethree developed regions with the metafrontier function during the time of2000-2009.Theresult shows that three region stochastic frontiers are enveloped by a metafrontier curve.Thetechnology gap ratio displays significant region characteristics. However, it is the most costefficient for the enterprises in Circum-Bohai-Sea Region comparing with Yangtze River delta and Zhujiang River delta. From2002, TGR of Circum-Bohai-Sea Region and Yangtze Riverdelta began to exceed Zhujiang River delta.(3) convergence&convergenceare used to assess the trend and direction atwhich logistics markets are integrating. We also employ a partial adjustment model to evaluateconvergence towards best practice. Results dose not seem to provide supporting evidence ofconvergence of efficiency levels towards an average. Nevertheless,there is evidence of anoverall improvement of efficiency levels towards best practice after entering WTO. Andadvices are given in the end according to the results.(4) In the background of order, the ability of cash gaining is the most important aspectsfor financial indexes in2005, and operating ability is the most important aspects for financialindexes in2009. When the results of the synthesizing score and strategy identity are got, theperformance of low cost strategy logistics companies are outperform the logistics companiesimplementing differentiating strategy. The results show that only low cost stratey have apositive effect on short cost efficiency,but the differentiation strategy have a negative effect onshort cost efficiency.It also shows that both two strategies can bring a long good costefficiency. But Chinese logistics public companies must face with situation which twostrategies being carried out together and coordinate the relation between resources andorganization.Cost efficiency is regarded as the mediating variable between diversificationstrategy and performance of Chinese listed logistics company. Result show that diversificationhas obvious positive effect on cost efficiency and performance.And cost efficiency hasobvious positive effect on performance. Cost efficiency play the mediating role betweendiversification and performance.The result above could be some concrete suggestions for logistics companies and providesome reference for policy formulating.