The Case Studies On The Profit-Making Model Of YT Logistics Company

The development of the logistics industry in China is far behind the developed countries,and the high logistics costs is also a major problem that restricting its development.Traditional logistics enterprises only earn money by providing single services such as storageand transportation services. A large number of competitors split the profits, as a result, theprofits of the traditional logistics enterprises is increasingly reduced. At present, China is in aperiod of transition of the logistics industry, to improve the competitiveness of enterprises andmaximize profits, the urgent need for modern logistics enterprises is to develop value-addedservices rather than storage and transportation services. The paper selected the YT logisticscompany which is one of the modern logistics industry as a study object, whose constructionof value chain and the design and implementation of the profit model is successful. However,it has its inadequacies. In this paper, I used the method of quantitative analysis, literature andcase study, and took the profit model theory and the theory of value chain as tools to analyzedprofit model, combined with its own characteristics to explore the advantages anddisadvantages of its profit model.In this paper I first introduced YT Company’s operations, business affairs, financialposition, profit sources, and leads to the YT’s existing profit model. In the case studies part, Ianalysis the YT company’s profit model, used of the theory of value chain as a tool, anddivided YT’s profit model into five different part depending on the different aspects of theirparticipation in the value chain. They are one-stop supply chain management profit model,depth distribution profit model, Virtual produce profit model, profit model of supply chainfinance, profit model of e-commerce platform. Then analyzed each profit model andcompared the advantages and disadvantages of each profit model. At last, came to theconclusion, I made concrete proposals from the point of view of cost co ntrol and competitiveadvantage. First, to phase out of less effective mode, and to prevent of risks of the profitmodel. I hope this paper can provide reference value for YT’s long-term development, andalso to provide a reference for the healthy development of China’s logistics industry.