| Transforming form providing traditional transportation services to modern logistics services become major inclination in the traditional transportation company (TTC) these days, due to increasing competition in the marketplace as well as squeezing profit margin, logistics, as the new tendency in transportation business, has been closely watched by a large amount of TTC, more others are making strategic decisions about their transformation, speed is crucial to future success.The major problems which those TTC are confronted are in the following areas: inappropriate usage of company's resources, including the existing customer base; the traditional company structure which set boundary for the operation process, therefore, causing higher handling costs and slower customer response; As for marketing, there is only buy-and-sell relationship between TTC and their customers, which caused lower customer loyalty and make it impossible to achieve win-win situation through co-operation and reducing total logistics costs; In logistics performance valuation area, TTC are always concerned about transportation volume figures, which is useless in monitoring business operation in real time base and improving customer satisfaction; Finally, the out dated information network is totally not enough to provide qualified logistics services with customers.Through case study of Chu Kong Shipping (CKS), this article is focused on the key areas mentioned above and put forward the relevant point of views. With its controlling shareholder of Guangdong Navigation Group, CKS is a Hong Kong based company engaged in traditional transportation business such as container transportation, cargo forwarding, wharf handling and warehousing etc. between Hong Kong and Pearl River Delta region. CKS is also similar with other shipping companies or cargo forwarders in corporate structure and management model, so it's very helpful for other TTC to share CKS experience in this area.Brief introduction has been given on the following five key areas including overall strategic planning, corporate resources integration, information network design, marketing and logistics performance valuation system:1. Overall Strategic PlanningOverall Strategic Planning consists of market positioning, competition strategy, business model and segmental area chosen, during transformation period, TTC should first position itself in the marketplace on the basis of its own advantages, then map out different competition strategy according to market environment and the status of their competitors, after that, they should integrate the value chain of the logistics activities, find out which areas to focus on and outsource the unfamiliar areas to other service provider or make alliance with other logistics provider to expand the service line in short period, the overall competitiveness of the logistics services provided is decided upon the competitiveness of those companies on the whole.2. Corporate Resource IntegrationThis chapter included the re-design of company's structure, the integration of company's internal and external resources, as well as operation process re-design. The company structure of the traditional company is setup by responsibility, which is influenced by the product/or manufacture-oriented model. However, this kind of structure divided the normal operation process factitiously and need to be redesigned according to business operation. Besides, company should integrate its internal and external resources. Internal resources included customer resources, cargo network resources, shipping lines resources, wharf and warehouse resources, information resources and other intangible resources such as brand, meanwhile, external resources included cooperation partner and other outsourcing service providers. After resources integration, company should redesign their business process to eliminate the non-value added activities and speed up the customer response time.3. Information Network DesignInformation network design is launched according to the develo... |
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