The Research On The Process Reengineering Of The Airfreight Company

Economic globalization developing very fast, the Chinese enterprises pay more attention than before on the logistics cost. Improving the technology of production and the level of management are not enough for the cost dropping, high level service and quality are necessary too. The low level of logistics management in china shows that there is relatively large space on saving the airfreight cost. The logistics cost reveals the capability of making profit of an enterprise and its position in the market. Compared with the developed countries, Chinese companies spent much more money on the air logistics. So the Chinese logistics company can help these companies in their cost dropping through process reengineering. It is very important and necessary for them to review and specify their logistics procedure.How to satisfy the customer and enhance the competitive ability is an important topic that each logistics company must take into consideration. The customer's request on high level service is rising up and it is almost impossible for the company to reduce the cost of airfreight and operation. So the logistics company can only realize dropping down the cost by simplifying and standardizing the airfreight procedure which is a systematic issue.Business process reengineering is a new-developed management technology which was first introduced in 1990,which is employed for enterprise to survive and develop in the economy globalization and ever-changing market. It is the fundamental rethinking and radical design of business process to achieve dramatic improvement in critical, contemporary measures of performance; such as cost, quality, service and speed. Reengineering is not about making marginal improvements or modification, but about achieving dramatic improvements in performance.Business process reengineering is seen as a chance to further the companies'lead over their competitors, which also plays an important part in the wholly competitive market. In classic business structure, organization is divided into different departments, and process is separated into simplest tasks distributing across the departments. The proceeding order-fulfillment example shows that the fragmented tasks-receiving the order form, picking the goods from the warehouse and so forth-are delayed by the artificial departmental boundaries. The type of task-based thinking needs to shift to process-based thinking in order to gain efficiency.The right way of employing business process reengineering is to make research on its origin,its development and existing problems through analyzing and describing the whole procedure, to rebuild the enterprise's operating system and structure, so that the enterprise can take the whole process under control and result in high efficiency.Process reengineering is the main solution to improve the competition of the logistics company. The customers always focus on lower costs, shortest transit time, security and in time information, the traditional process of logistics company can not match or satisfy above requirement. Process r eengineering is the right way to help solve above problems. First, the integrated logistics process can help cutting down the large scope of transportation cost and inventory, on the other hand it can optimize its structure specializing in the customers. It can also save time ,match the request of the customers, improve the enterprise feedback speed which can help building advantages over logistics company.