1-1.Types and areas of logistics in the supply chain

Within the entire supply chain, logistics flows can be broadly classified according to their roles.

1-2.Five major classifications of logistics and characteristics by area

① Five logistics classifications that make up the supply chain

② Structural differences between production logistics (plan-driven) and sales logistics (demand-driven)

• Production logistics = “Controllable world (planning and leveling)”

  Since cargo is moved based on the factory's "production plan" and "shipping schedule," it is possible to accurately predict and level out "when, where, what, and how much to transport" in advance.Because demand fluctuations are small, it is an area where it is easy to achieve an extremely high return on investment through unit loading (integrated pallet transportation) and hardware/mechanization (labor saving investment) such as automated warehouses.

• Sales logistics = “A world at the mercy of demand fluctuations (customer-first, uncontrollable)”

  Since orders from stores and end consumers act as triggers, the amount of goods delivered can fluctuate dramatically depending on the day of the week, season, weather, special sales, TV exposure, etc.Because it is necessary to meet strict customer demands such as "I want it now," "same-day delivery," and "specified time slot," accurate data analysis in advance and a flexible work system (software management using WMS) are required.

③ Transition to BtoB, BtoC, and CtoC logistics and changes in cost structure

④ Impact on logistics sites brought about by CtoC (personal EC) logistics

• Non-standardized packaging and the difficulty of automatic sorting

  In BtoB and BtoC, the size of cardboard boxes for products is relatively standardized, but in CtoC, items are sold and packed by individuals, so the packaging may be irregular (non-standard), such as paper bags, reusing existing boxes, or envelopes.As a result, there are cases where conventional high-speed sorters (automatic sorting machines) cannot read or transport the items, and special image sensors and manual sorting processes are required.

• Dispersion of “first mile” (pickup/delivery) and coordination of PUDO/convenience store logistics

  In CtoC logistics, shipping sources are distributed at multiple locations such as private homes, nearby convenience stores, and delivery lockers (PUDOs) installed at stations.Delivery companies need to collect small parcels scattered across the country, consolidate them at regional hubs, and then transport them on main routes, which is a factor in the rise in first-mile collection logistics costs.

• Close collaboration between anonymous delivery and information systems

  In order to achieve "anonymous delivery" that protects the personal information of both sellers and buyers, data linkage using QR codes and barcodes is essential.Logistics facility planningIn addition to physical cargo, it is important to introduce advanced information APIs and WCS (warehouse control systems) that connect personal information and cargo without contact.

💡 Why it becomes difficult to reduce logistics costs due to small-lot distribution (BtoC/CtoC)
1.Explosive increase in work hours:Labor costs increase as each item is picked one by one from a large inventory (bulk picking), individually packed, inspected, and labeled.
2.Decrease in delivery density and redelivery costs:Unlike BtoB, where thousands of items can be unloaded in a single delivery, BtoC/CtoC involves frequent deliveries of small quantities to individual homes, resulting in an increase in the number of vehicles required, a shortage of drivers, and re-deliveries due to absenteeism, which increases the cost of last-mile transportation and delivery.