• Title/Summary/Keyword: Logistics Industry Efficiency

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Total Factor Productivity Growth and the Decomposition Components of Korean Port-Logistics Industry (항만물류산업의 총요소생산성과 그 분해요인분석)

  • Gang, Sang-Mok;Lee, Ju-Byeong
    • Journal of Korea Port Economic Association
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    • v.24 no.4
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    • pp.47-70
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    • 2008
  • The purpose of this study is to estimate total factor productivity(TFP) growth by stochastic frontier function and to grasp contributing factors of its growth rate by decomposing the total factor productivity into efficiency change, technical progress, scale change, and allocation change. Annual growth rate of total factor productivity for 1990-2003 is 0.019 (1.9%), higher than that of overall industry (0.010). The main component of TFP growth is not efficiency change but technical progress. Contributing factors of total factor productivity growth are change of allocation efficiency in port industry, technical progress in sea-transportation industry, and change of scale efficiency in transportation-equipment industry. The change of total factor productivity shows a decreasing trend since late in the 1990s. The annual technical efficiency of port-logistics industry is less than that of overall industry. Capital elasticity for output (0.391) is higher than labor elasticity (0.227), but scale economy of port-logistics industry is 0.618, which is far from optimal scale economy.

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Research on Construction of the Logistics Legal System in CJK FTA

  • Yi, Shan;Su, Shuai
    • East Asian Journal of Business Economics (EAJBE)
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    • v.3 no.4
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    • pp.21-28
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    • 2015
  • With CJK FTA as a starting point, this paper mainly studied the role of the logistics legal system in promoting marine industrial cooperation, facilitating investment trade, establishing international transport logistics, building marine economy international cooperation demonstration zone and deepening the economic and financial cooperation between China, Japan and Korea, and explored the way to establish an integrated logistics system between China, Japan and Korea to match the e-commerce certification system, online payment system and logistics distribution, thereby gradually promoting economic development and logistics integration in Northeast Asia, improving logistics efficiency, reducing logistics costs and establishing a unified logistics industry standardization system. This will accelerate logistics industry integration in Northeast Asia, build a unified logistics management center in Northeast Asia, and promote a new model of integrated logistics cooperation in Northeast Asia. Therefore, it has a practical and reference significance. In short, the improvement for the logistics legal system in CJK FTA is not the responsibility of a country or several countries. It concerns the development and prosperity for the logistics industry in the three countries and is an inevitable choice to promote the vigorous development of CJK FTA and economic take-off of each country.

The Improvement in Korean Inland Transportation System for Reducing Export Logistics Cost (수출물류비(輸出物流費) 절감(節減)을 위한 내륙운송체제(內陸運送體制) 개선방안(改善方案))

  • Lee, Young-Soo
    • THE INTERNATIONAL COMMERCE & LAW REVIEW
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    • v.12
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    • pp.349-376
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    • 1999
  • The objective of this paper is to identify the problems of Korean inland transportation system and suggest the improvement plan for reducing the export logistics cost. The results are as follows: (1) Expansion of logistics hub facilities : Logistics hub facilities- integrated freight terminal and ICD, etc. can shorten the empty leg and reduce the logistics cost. (2) Design for CVO(Commercial Vehicle Operations) : CVO has various functions that improve the efficiency and effectiveness of freight transportation. (3) Rationalization of freight transportation industry : In particular, the deregulation of the motor freight industry and the privatization of the railway industry induce the competition among their firms and undercut the transportation rates in the long run. (4) Use of third-party logistics : The benefits of TPL are system reliability, improved customer service, and more efficient cost performance.

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Efficiency Analysis of Total Logistics Provider (종합물류기업의 경쟁력 분석)

  • Park, Hong-Gyun
    • Journal of Korea Port Economic Association
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    • v.27 no.2
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    • pp.261-273
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    • 2011
  • Mega-corporations are emerging as a result of M&As (mergers and acquisitions) in the logistics industry. The global logistics market has progressed in a continuously competitive manner. Global logistics corporations provide integrated set of services, from production to disposal in order to manage the process efficiently throughout the diverse regions of the world. To advance into an total integrated logistics provider, the corporation must have professional knowledge in logistics and information technology which are necessary to deliver effective integrated logistics solutions. The government has integrated the logistics corporations both horizontally and vertically with the aim to foster logistics corporations possessing global competitiveness. Six years have passed since the implementation of the comprehensive (total) logistics industry certification system in pursuit of making Korea the hub for the Northeast Asian logistics market. This study compares and analyzes the efficiency of nine mega integrated logistics providers by applying the CCR model and BCC model. Each of the nine corporations is subject to certification as integrated logistics corporations. In Korea, nine corporations are certified individually as integrated logistics corporations out of the 31 logistics providers. The analysis showed that the Glovis was the most efficient integrated logistics provider reaching 100% in efficiency and displayed the highest efficiency for six consecutive years from 2005 to 2010. The study also found that the Glovis will be able to maintain 100% in efficiency rate, even though the input are increased over six times as many as those of 2010.

Research on the Current Situation of Logistics Standardization in China and Cooperation Scheme between Korea and China (중국의 물류표준화 현황과 한중 협력방안에 관한 연구)

  • Li, Zhong-Shi;Wen, Hua
    • Journal of the Korea Safety Management & Science
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    • v.23 no.2
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    • pp.37-44
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    • 2021
  • Logistics standardization not only stands for logistics industry competitiveness, but also it is core competitive power. And Logistics industry makes smooth the exchange of goods, service and information in improving economic efficiency. Logistics cooperation between Korea and China becomes important issue because it has strategic meaning for two countries' benefit. Korea and China should reform logistics standardization and cooperate each other. This study based on analysing the China's logistics standardization policy, and comparison of ywo countries' logistics standardization, explored the alternatives of its cooperation between Korea and China in the new perspective.

An Empirical Study on Clothing Distribution Center to Improve Storage Efficiency : Especially on Hanger Rack Storage According to Distance between Columns (의류 물류센터 보관효율 향상을 위한 실증적 연구 : 행거 랙 보관과 건물기둥 간격을 중심으로)

  • Nam, Hee Dae
    • Journal of the Korea Safety Management & Science
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    • v.21 no.4
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    • pp.75-80
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    • 2019
  • Sales of the Korean clothing industry grew to 16.9 percent on-year in 2010, but the growth rate dropped to 3 percent from 2011 to 2016 and the overall market began to slump to 1.1.6 percent in 2017. The competitiveness of clothing companies is also a major sector in logistics capability, and the average logistics cost of domestic clothing companies is 8.3 percent of sales in 2011, higher than the average 8 percent of domestic industries, and 36.4 percent of the total storage cost in 2011, higher than the 28.8 percent share of the total storage cost of domestic companies. As domestic production conditions such as wage hikes and labor disputes worsened in the 1990s, production facilities were rapidly moved overseas, which led many clothing companies to have no production facilities or a minimal production base in Korea and focus on marketing and design capabilities. The total storage capacity and storage efficiency of the logistics center became very important as the products were changed to the form of mass warehousing and small-volume forwarding. Research shows that building column spacing, a model of this research, can affect the amount of hanger rack storage empirically, so for sustainable growth of clothing companies, it is necessary to improve competitiveness in the logistics market by reducing costs and improving efficiency to overcome difficulties in corporate management. Because logistics costs are 8.3 percent and operating profit to sales ratio is 2 percent, it is expected that operating profit will increase by 41.5 percent if logistics costs are reduced by 10 percent. If 10% of storage cost is saved based on storage cost, operating profit is expected to increase by 15% To strengthen the competitiveness of the clothing industry, a reduction in logistics costs is essential. Therefore, the purpose of this study is to provide hints that logistics experts can have empirically small amounts in reducing storage costs through column spacing adjustment of logistics centers that have not been dealt with statistically until now, and to contribute to the continued growth of clothing companies and the development of the domestic logistics industry.

A Study on the Rationalization of Logistics Based on the Design of Variable Desks and Chairs (가변형 책·걸상 설계를 통한 물류합리화에 관한 연구)

  • Kim, Byeongchan;Lee, Changmin
    • Journal of Korea Society of Digital Industry and Information Management
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    • v.15 no.3
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    • pp.89-100
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    • 2019
  • Uniform and integrated college desks and chairs have low efficiency of loading for transportation and delivery and low efficiency of storage for warehousing due to their simple uniform physical properties, thus increasing logistics costs for companies and decreasing their competitiveness. In an effort to overcome the limitations of previous studies, this study analyzed the stages of logistics for desks and chairs in college lecture rooms via the transportation route including the factory warehouses and local warehouses and via the delivery route from local warehouses by the region to the orderers including college lecture rooms. The study developed a model for the rationalization of corporate logistics by making a variable folding desk and chair capable of distance adjustment according to height to replace the uniform and integrated college desks and chairs in lecture rooms. A model was developed between the old uniform and integrated college desks and chairs and the new variable folding desks and chairs for three scenarios of cost development including product storage costs, transportation costs from the specialized factory warehouses to the local warehouses by the region, and delivery costs from the local warehouses to college lecture rooms as the orderer. For the generalization of the model, it was applied to each of the 90%, 95%, and 99% service levels.

Environmental Analysis and Efficiency Improvement Plan of Agricultural Export Logistics through Applying 3PL (농산물 수출 물류체계의 환경분석 및 3PL을 통한 효율화 방안)

  • Lim, Jang-Hyuk;Han, Young-Geun
    • Journal of the Korea Safety Management & Science
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    • v.15 no.1
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    • pp.183-191
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    • 2013
  • After the Uruguay Round, Korean agriculture industry has been protected and reared with government grants. However, until now there has been very minimal development to establish a solid export industry which can make the most of the trade agreements in place. There has been much research on ways to expand agricultural exports in order to respond properly to this ever changing environment and sustainable agricultural industry. As all other export industries, an efficient logistics network is paramount in order to allow the agricultural industry to respond to changes in demand and penetrate global markets. The lack of systematic logistics activities such as packaging, transportation, unloading, storage, and information transfer in farms has been a major factor in the inefficiency of the agricultural industry resulting in minimal development. From this perspective, 3PL was proposed and applied as a way to build on the streamlining of export of agricultural logistics system. The Agri 3PL is considered as an efficient agricultural exports method as a new concept connecting producers with exporters.

A Study on the Evaluation of Logistics Efficiency in 22 cities of Guangxi and Yunnan (광서성 및 운남성 22개 도시의 물류 효율성 평가에 관한 연구)

  • Zhou, Yi Xi;Jeon, Jun-Woo;Kim, Hyung-Ho
    • Journal of Digital Convergence
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    • v.18 no.9
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    • pp.81-91
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    • 2020
  • The logistics industry is a basic and strategic industry that supports the development of national economy and society. The purpose of this paper is to evaluate the logistics efficiency of 22 cities in Guangxi and Yunnan provinces in China, and to grasp the problems and constraints and present policy proposals to promote the transformation and upgrading of the industrial structure in Guangxi and Yunnan provinces. In this paper, five input indexes and four output indexes were selected and the data from 2016 to 2018 were analyzed through DEA method. According to the analysis, the logistics efficiency of Guangxi and Yunnan provinces is not bad overall, but the development of each region is not balanced and the level of logistics efficiency is quite different. And it is found that each city needs to further improve the level of scale because the input and production structure of logistics resources is unreasonable. The limitation of this study is that it is difficult to generalize the analysis results because only the data over the past three years have been analyzed. It is necessary to comprehensively implement longitudinal and transverse analyses by extending the future analysis period over a long period of time.

The Effect on Logistics Cost of Incompatible Packaging Sizes in T-11 and T-12 pallet systems (T-11형 및 T-12형 파렛트 간 공용포장규격 미적용으로 인해 물류비에 미칠 수 있는 영향)

  • Jung, Sung-Tae;Yoon, Nam-Soo
    • Journal of Distribution Science
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    • v.11 no.8
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    • pp.15-23
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    • 2013
  • Purpose - This is a case study aimed at finding a solution for improving the pallet loading efficiency in the process of delivering products through a transshipment using the T-11 and T-12 pallet systems. The study proposes a solution by demonstrating the case of a certain manufacturer A, who aims to reduce the logistics cost by using packaging sizes that are commonly applicable and can improve the compatibility between the T-11 pallet system, designated as the standard pallet in Korea, and the T-12 pallet system, which is commonly used in other foreign countries. The use of common sizes increases compatibility among the two systems and reduces both logistics and environmental costs. Thus, this case study calculates the quantitative benefits of applying common packaging sizes to improve the compatibility between the T-11 and T-12 pallet systems. These systems are considered to be the most important and widely used transportation systems in the global logistics industry. Research design, data, and methodology - This study examined manufacturer A's representative product and delivery system and assessed how manufacturer A was affected by the use of incompatible packaging sizes in the T-11 (1100 mm×1100 mm) and T-12 (1200mm×1000 mm) pallet systems, which were specified in the KS T 1002 standard. In addition, this study analyzed the impact of these packaging sizes on A's logistics cost. The TOPS program (Total Packaging System) was used to simulate pallet loading efficiency,and the main parameter studied was volume, as calculated from length, width, and height. Results - When the sizes of secondary packaging were not compatible across the T-11 and T-12 pallet systems, a reduction in loading efficiency was observed, leading to an increase in logistics cost during transshipment. Such low loading efficiencies led to a further loss of efficiency in transportation, storage and unloading. This may have a possible environmental impact with high social expenses, such as increased CO2 emissions. Hence, this study proposed that the KS T 1002 standard be amended to include 21 packaging sizes, including 7 sizes of the 600 mm×500 mm category, which are compatible with both the T-11 and T-12 pallet systems. Conclusions - This study found that the 69 standard sizes under the T-11 pallet system and the 40 standard sizes under the T-12 system in the KS T 1002 standard can be simplified and reduced to 21 mutually compatible packaging sizes, enabling logistics standardization and reducing national-level logistics costs. If the government pays attention to this study and considers the standardization of common sizes for the T-11 and T-12 pallet systems and amends the KS T 1002 standard, this study will deliver practical value to the global logistics industry, apart from being of academic significance.