Natural Rubber Industry Logistics Management Study

The writer personally engages in purchasing natural rubber from overseas and domestic markets and then re-sells to domestic enterprises. With her long period experience, the writer fully aware that natural rubber, as basic capital goods, its price is affected not only by international political, economy and national relationships but also by economy period and relationships of the country supply-demand, just like oil. Enterprises face duel challenges from market price and demand fluctuation and under the buyer's market, they make more request to suppliers on logistic service. It becomes a significant task of enterprises as to how to improve logistic service, reduce cost and ensure the long-term competitive advantages under the circumstances of increasingly severe market competition. To speed up the circulation and improve the circulating efficiency of merchandise, and to accelerate economy circulations become necessary method to enhance competitive edge and fundamental approach to gain more margins of numerous manufacturers, wholesales and retailers.The thesis takes natural rubber industry as the only example, from the angle of supply chain and through the writer's knowledge and summarization of current status, analyzes the logistics issue of natural rubber industry. It further finds out from various and complicated logistic theories the one most suitable to the development of natural rubber industry; sets up the logical mode of logistics management, and apply the logistics cost management to practice, thus it offers to natural rubber dealer and manufacturer the theory basis and practical instruction of logistics strategy. Transport specialization, inventory rationalization, the advanced theory of modern logistics management have also been cited into the practice of natural rubber circulating to improve the efficiency and at the same time, to improve the service function. It shows us how to meet the customer demands at minimum cost meanwhile enable the enterprise to gain profits and further developments.There is five parts of the thesis, including Market Analysis of Natural Rubber, Logistics Analysis of Native Natural Rubber Industry, Logistics Analysis of Overseas Natural Rubber, Logistics Strategy of Natural Rubber Dealer, Logistics Strategy of Natural Rubber Manufacturer.The thesis narrates the natural rubber industry basically in the first part. It introduces the properties and functions of natural rubber at the beginning, the following is the natural rubber industry and the market supply-demand status, the main factor to affect natural rubber price fluctuation subsequently. In the second and third parts of thesis, from the supply chain angle, it analyzes the influence and promotion of current logistics management affected on native and overseas natural rubber industry respectively. It also analyzes the cost structure of native natural rubber, and according to the actual business, gives an example to show the direct cost and logistics cost for overseas natural rubber imported by common trade.The forth part of thesis analyzes the importance of logistics service, outsourcing transportation, inventory management for natural rubber dealer firstly. Its price fluctuation is violent, there are two phases over a long time, rising and falling. Through linear programming analysis on true data, the emphases is finding the order management mode at the different phase, providing the theory basis of reserve or zero-inventory strategy for dealer in practice. And through the example of economic order quantity, it shows the relationship of inventory cost and order cost, further gets the lowest total cost to guide the best order quantity in practice, and builds up the logistics programming mode, applies the logistics theory to natural rubber supply-sale-inventory system. It cites the example of market deal price and quantity applying linear programming analysis to show that, the supply-demand of natural rubber has elastic and to lower the price will get large sales, at the same time bring scale profit. The thesis analyzes briefly the requests for logistic management of natural rubber manufacturer in the last part. In many instances, natural rubber manufacturer may refer to the dealer for logistics strategy. But natural rubber manufacturer, restrained by external factors such as product series' distribution, manufacturing conditions and fixed ingredients, tends to be more simplified than natural rubber dealer on series structure concerning the purchasing of natural rubber. Price structure, transportation method, product series and lead times of both overseas and domestic natural rubber market vary, so, natural rubber manufacturer may choose overseas or domestic natural rubber considering CIF price, transportation service and quality at different period of time and extend the purchasing logistics to the whole international market.