Research On The Reduction Problems Of The Material Flow

Logistics is called as the facilitator of economics. But our economics depends too much on logistics, the logistics demand coefficient, namely the total logistics amount compares to GDP, has increased in high speed, and the proportion of logistics cost to GDP is high without decrease to double mount of developed countries. The logistics cost consist of economic and ecosystem is very high. And, the same problems exist in agriculture development, especially the ecosystem cost. Logistics plays a very important role in the value-increasing of agri-products. But the problems of agricultural logistics system have brought on huge loss, due to be incapable of realizing the value, which affects the income of the farmers, and lead to the overusing of fertilizers and pesticide. It is both significant in theoretic and realism to research on the problems of too high logistics cost of national economic development, because it is the important goal to decreas the logistics cost of economical development.According as the material flow theory framework, the paper studies on the problems of the economical logistics cost, comprehensively utilizing the economics, management, system science, industry cluster theory, and so on, as well as the methods such as logic syllogism and induce, criterion analysis and demonstration analysis, qualitative analysis and quantitative analysis, theory analysis and contrast analysis, system analysis, SCP analysis, mathematics model, games theory, case study, etc. The main content include: first, set forth and discuss the material flow theory, take it as the basic theoretical foundation to analyze the logistics cost of China, and then put forward the concept of logistical reduction in combination of the actual high logistical cost; second, analyze the main facts to affecting the logistics cost in China, and study on the problems of logistical reduction of amount of practicality and value; third, in the views of industrial organization, analyze the reduction of economical logistics system while utilizing the SCP framework; fourth, study on the main obstruction to the logistical reduction and the government behavior; five, analyze the agri-products logistical reduction combined with actuality of agriculture of China; lastly, is the case study of vegetable as the dominant agri-products in Shandong Province. The main viewpoints and conclusions are as follows:1. The material flow theory helps to solve the problem of high logistics cost, namely to realize the aim of logistical reduction. The material flow (MF) means the flow of material, and the economical logistics is a sect of it. The core thought of the MF is, MF consists of natural material flow, social material flow and economical material flow, the whole and the harmony are emphasized in the activities of MF, both inside and among each kind of the material flow. The base of economical material flow, the bridge between production and consumption, is natural material flow (NMF), and the final destination of the economical material flow (EMF) is harmony of social material flow. At the same time, the relationship between EMF and produce is bi-directional, the EMF serves the produce and marketing while the produce and marketing should take aim the goal of MF, which is the thought of MF. The development of EMF has been accelerated by the economical development, and gradually formed the logistics industry cluster after socialization and specialization which is the organization being capable of exerting the whole advantage. Because of the huge space-time range, the logistics industrial cluster not only is on the geography distance but also is manifested virtual in virtue of modern technologies. The causes of the forming of logistics industry cluster are the saving of contract cost and the utilization of scope economics.2. As regards of the high logistics cost of China, beside the cost per capita, the flux is also too high, namely double-high. They tie up and also are quite different. The high flux leads to high cost both economically and environmentally. To realize the reduction of logistics, we must decrease the logistics cost per capita, namely increasing the logistics efficiency, and decrease the total logistics flux on the other hand. The former could be realized by improving the economical material flow helped by the though of MF, the resolve of the latter need erect the thought of MF, that is to say, the flux of EMF and SMF could not go beyond the limit set by the bearing of NMF.It is indicated by analysis that logistics flux has high relation with industrial structure, the distributing of resources, the density of population, works dividing of international cooperation, the producing layout, the efficiency of logistics networks system, and so on. The practicality amount in the links of logistics depends on the efficiency of logistics networks system while the time of logistics links is 95% of the whole process of the produce and sale. The main indicator of low logistics efficiency is the assets turnover rate, the profit of the enterprises depends more on low labor cost and high price. So the low logistics efficiency decreased the consumer surplus and impaired the welfare of the consumers. So the rising of efficiency is significant aspect of logistics reduction. And, the waste of resources is also the other key fact to rise the flux of MF. The MF should be the strategic goal of the adjustment of industrial structures, and take the logistics reduction as destination variable, so as to decrease the flux of MF from headstream; the best logistics is the disappearance of the logistics.3. The logistical industrial organization is the important fact for the logistics reduction, that the market structure decides the conduct and the performance of all the logistics enterprises. The socialization and specialization of logistics are the trend for improving the efficiency of EMF, and the third part logistics is embodiment of the trend. It is indicated by market structure analysis that our logistics market is atomy market structure, the convergence extent of the logistics industry is too low, there are few great firms, the difference of logistics services are low, and the no-assets logistics services lack without necessary industrial works-divide and coordination, the over-competition exists in low-side markets while the competition in high-side market is not adequate. In views of innovation of logistical technologies, limited and affected by the enterprise size and the mode of risk partake, technological progress and pervasion are in low speed; affected by the asymmetry of information, the business of the third part logistics has high risk for the demander, and impacted the development of the industry; and in the views of governmental control, there existed over-control and insufficient control in different fields.Thus, for the reduction of logistical cost, we should take the policies to encourage monopolization within measure, conformity the logistics resources and improve the market concentration extent via annex and regroup, so as to improve the ability of technological innovation. On the other hand, we must improve the market environment as well as law, and remove the administrational bulwark and regional blockage, build the expedite MF networks in the whole country, encourage the utilization of all the logistics resources and every kinds of the transportation mode, promote the cooperation and expand of the enterprises, and create a fitting condition for the growing of large-scale logistics organization like syndicate, so as to exert the utility of scope economics in a larger region than before to reduce the logistical cost.4. To overcome the obstacle of MF reduction and realize the cooperation and competition in order, the government should take the key role in supplying logistical public goods, in which there are practicality and especially the system soft resources. Some very significant activities in system of EMF need restriction and criterion by system, such as the layout of logistics nodes and line-net, the rival and cooperation among logistical main-bodies, the arrangement and join of different transportation modes, the interest distribution among different bodies, the impact to the NMF by main bodies, etc. The government should build the promoting and restricting mechanism in favor of the logistical reduction for the system of EMF.The governments of developed countries, such as Japan, the US, and some countries in Europe, have taken actions in some way, they have constituted the system and guiding opinions, which can be used for reference. Our government has started to think much of the building of the logistical environment, such as removing some institutional obstacles, but the step is quite slow, and still has much works to do in integration of logistics system of the whole country and removing the regional rampart of logistics. The institutional environment of logistics rests with the games results between the central government and the regional government and also among the regional governments. Theoretically speaking, cooperation is the dominant strategy perfectly, but the results may be (no-cooperation, no-cooperation) when being short of favorable external restriction. Thus, the dominant strategies of cooperation should be get by hard restriction of outside force.5. It should be the main direction of our agricultural adjustment that we benefit from the logistical links after production instead of yield from oil agriculture. It is the keystone of agricultural sustainable development to build a system of MF for farm produce, which is economical, efficient, and realize reduction of MF. Taking material flow theory as the guide for the logistics of farm produce is the important selection and approach to solve the problems facing China's agriculture, rural areas and farmers as well as the logistical reduction of agricultural development cost. Agriculture is the industry being most typical to incarnate the harmony among NMF, SMF and EMF, which inosculates the thought of MF theory all right, because the quantity and quality of EMF affect the agriculture each other.The logistics of farm produce is the core part of agricultural cycle, and the logistics of farm produce is the key to the realization of the reduction of agricultural cycle.The logistics time is decisive for value of the farm products, especially the fresh one. The characteristic that the produce is in small-size and very disperse comes into being the inhere factor to increase the logistical time and cost. It is the main decision-making target for the farm products management to improve the ability of the logistics network system, consist of enlarging the logistics radius, shortening the logistics time, increasing the logistics capability, to be able to promote the multiplication and decrease the latent loss of the logistics process. For handling the disadvantage status of agriculture and establishing the national logistics networks system with reasonable arrangement, the government need provide guidance and aid for some area such as the hardware layout of the logistics networks, software of management system, information exchanging and the logistics main bodies namely logistics cooperational organization etc.