The Research On The Physical Distribution In Weizhi Group Co.Ltd.

"Bullwhip" States that customer's demand is exaggerated through intermediaries, so manufacturer's inventory is becoming bigger, then wholesalers' and retailers'. Logistics Experts and practitioners pay more and more attention to the study of logistics.Chinese fashion enterprises are classified in three types, they are sole manufacturers, marketers and integrators of the previous two. The last one has to face more competition.The study of the case of Weizhi Group has great significance to Weizhi Group in term of its practices, and it also reminds of the fashion industry to change from traditional managerial ideas to logistical ones.The thesis redefines logistics according to logistics literature, expressing clearly that logistics has three theoretical divisions; they are logistical strategy theory, logistical service theory and logistical integration theory. Physical distribution theory and techniques are also described.The paper analyses the physical distribution problems in Weizhi Group Co. Ltd., they are higher distribution costs, untrue information and low distribution efficiency.The author puts forward series solutions by applying logistics theory and techniques. Finally the author hopes Weizhi Group should reposition its strategic goal, that is, achieving competitive competency by creating value added service to its customers.Finally the author makes several conclusions. Logistics is getting a strategic position in management practices. The objective of logistics is to meet customer's needs by creating added value to the customers through internal integration and external integration. Logistics efficiency and logistics cost will be the business performance measurements. To improve logistical service and to meet customer's needs, managerial attentions should be adjusted to time and cost management. Without modern information technology, the achievement of logistical goals is impossible. Business can achieve competitive competency through effective and efficient management of material flow and information flow. The last one but not the least important one is by practicing the author's suggestions Weizhi Group will improve its ROI by 4%.