the advantages and disadvantages of both the Joint Distribution

Talk about joint distribution, distribution synergies, but all distribution, both of which will ask what is the difference? The purpose of both is the same, to maximize the efficiency of personnel, materials, money, time and other logistics resources (cost reduction) to achieve maximum benefit (improving service).

       Both were from the definition of what comparative

       Joint distribution is to focus on a different owner of the goods or merchandise together, unified distribution operations; Joint Distribution is the goods are loaded in the car to run the same route, with the same truck shipments to more customers. By definition, there is no difference between the two are different customers of the goods to the designated customer location.

       I understand it, together with a third-party logistics service provider for the number of vendors a customer, and the Joint Distribution is a third-party logistics service provider for multiple vendors than customers. Joint distribution on the one hand to expand their business volume, improve cycling loading rate; on the other hand also helps to reduce the number of vehicles in transit operation, mitigation external motor transport on society uneconomical.

       Conduct some advantages and disadvantages of both the distribution model from comparison

       Joint Distribution of advantages and disadvantages

       Advantages: it can improve efficiency and reduce costs; social resources can be shared.

       Cons: China's development of joint distribution involves many details, such as each company's products, scale, businesses, customers, business awareness and other discrepancies, as well as organization and coordination, cost-sharing, trade secret and other issues. FATF coordination, cost-sharing, trade secret factors influence.

       Organization and coordination is difficult, because each owner of the distribution of their goods have certain requirements, including the time, place, safe, there are number of poor conductivity, these elements should unite, is not an easy thing; the distribution of benefits contradictions, since the joint distribution of the benefits achieved in the absence of objective criteria when allocated among the owner, is difficult to achieve a fair and reasonable allocation; each main business trade secrets is not easy due to the joint distribution of confidentiality, the owner would not have this participate out of their own trade secret protection.

       Collaborative distribution model advantages and disadvantages

       advantage;

       ① from shippers (manufacturers, wholesalers and retailers) point of view, can improve the efficiency of logistics and distribution through. As each small wholesale distribution industry, retailers and more difficult to meet the batch, small batch delivery requirements. Through collaboration and distribution, so that the party can achieve a small amount of shipping logistics, receiving party can be a unified overall inspection so as to improve the logistics service level objectives.

       ② from the trucking industry's perspective, trucking industry, mostly small and medium enterprises, not only less money, lack of talent, organize fragile and less transportation, low transportation efficiency, the use of vehicles, alone contract business, logistics and rationalization limited efficiency. If you implement co-operative, is to raise funds, bulk freight, improve vehicle efficiency through information networks, round-trip shipping and other issues can be better addressed. At the same time, through the Joint Distribution expanded to provide customers with multi-batch, small batch services.

       Disadvantages:
       (1) the possible leakage of business secrets.
       (2) difficult commodity management.
       (3) disputes worry, worry about declining standards of service, cargo damage or contamination.
       (4) increase in collaborative logistics to worry about infrastructure costs and management costs.
       (5) there is a problem to worry about distribution of costs and benefits.
       (6) difficulties exist executives in business management.
       (7) lack of distribution synergies outstanding figures.
       (8) for the construction of distribution facilities and co-investment to improve the traffic environment of a reasonable allocation of investment is not easy.
       (9) establish cooperative distribution system specialist inadequate.

       Conduct some form of organization from both the distribution model comparison

       Organization of joint distribution

       1) together with the distribution among industries

       Together with the distribution of production among refers in the same industry or production enterprises, in order to improve the efficiency of logistics, distribution center through centralized delivery method. There are two specific practices: inter-industry cooperation with mutual co-distribution model. In this mode, the business ownership transport and logistics facilities remains unchanged, but the situation may be distributed according to their characteristics and logistics customers, the companies establish coordination mechanisms to ensure the normal joint distribution.

       Coproduced between distribution centers and other infrastructure through the establishment of logistics facilities to develop a common distribution. This model and the former distribution model compared to large-scale joint distribution, is conducive to play the advantages of economies of scale; at the same time for all companies involved in terms of saving a lot of investment in logistics facilities, equipment, personnel, and to focus on developing their core business; and this distribution model is conducive to specialization, distribution levels are relatively high.

       For common distribution model with the industry, the difficulty of the overall organization of joint distribution is relatively low, relatively easy to develop.

       2) joint distribution differences between industries
       Between different industry refers to a form of joint distribution will be engaged in different sectors of production of goods together, the delivery to customers through distribution centers. The basic distribution model as follows: industrial cooperation between the different distribution model. By different industries with different sizes of goods to joint distribution, this distribution with particular attention to product characteristics and distribution customers. Between different industries through the establishment of logistics distribution centers and other infrastructure facilities to develop a common distribution. This distribution model ensures that both complement each other, but also to prevent the leakage of corporate information that can maximize the synergy effect.

       Organization of cooperative distribution (logistics industry as the mainstay of synergistic delivery)

       Distribution provided by the logistics industry, or they set up a new company or as the main partner institutions cooperate to overcome the inefficiencies and other issues of individual distribution. This type of cooperative distribution companies can be divided into body type and body type cooperating agencies.

       (1) the company body type.
       ① Collaborative delivery carrier: the delivery of goods to a particular point of delivery, the delivery of business co-operation.
       ② jointly funded the establishment of the new company to carry out Joint Distribution: Local shipping companies (especially LTL freight shipping industry, the industry charter) jointly funded the establishment of the new company to carry out home delivery business.

       (2) cooperation mechanism body type.
       ① shipping industry cooperation agencies work collaboratively distribution: transport companies cooperating agencies, members of the goods in their collection and distribution of goods or goods shipped to the region collected income picking stronghold, unified distribution.
       ② cooperation agencies and wholesale transport cooperation agencies, to carry out coordinated delivery: cooperation agencies transport industry's cooperation agencies and wholesalers, set the collection and distribution of goods cargo stronghold delivery company contracted partner institutions unified set of goods and wholesale distribution cargo business.

       In summary, there is a big difference in essence and co-distribution joint distribution, but in the end only one purpose, to reduce logistics costs and improve logistics efficiency and logistics services.
China's major cities in the implementation of joint distribution or distribution cooperative, synergistic implementation of joint distribution or distribution model, thus improving the utilization of vehicles, warehousing, so the total cost is the lowest. And, with the use of common mode or cooperative distribution, although such distribution network is reduced, but the functionality and services is greatly enhanced, so as to effectively achieve cost intensive.

       Joint Distribution is economies of scale as the main mode of operation of the logistics and distribution. Successful operation of the joint distribution, one needs to serve a large enough scale of operations, and gradually establish and implement a uniform joint distribution system, a smooth information channel support; the second is to gradually expand its business to real needs-based, does not desire to build day, sound common distribution system; third is to invest for the weakest link resources, stripped of excess resources, logistics project works started, common logistics and distribution to seize the high ground.

       Joint distribution means jointly organized by a number of companies, unified distribution activities planned implementation. Joint distribution idea is to focus on a different owner of the goods or commodities together, unified distribution operations. Joint distribution on the one hand to expand their business volume, improve cycling loading rate; on the other hand also helps to reduce the number of vehicles in transit operation, mitigation motor transport produces external diseconomies.