The Reversal In The Logistics System

The logistics system Logistics system is consisted by two or more of the logistics function units, the organic aggregates that take completing logistics services as the purpose. "Input" of the logistics system refers to the process that the elements as labor, equipment, materials and resources that the logistics aspects of procurement, transportation, storage, distribution processing, handling, transport, packaging, marketing, information processing required, provided to the system by the external environment. The logistics system is defined as in some time and some space, an organic aggregates with specific functions which consisted by a number of dynamic elements including the required materials , related equipment, transportation tools,

It is the reflection and the performance of its internal contradictions in this field. “The Reversal” means that there exist contradiction between profit and loos of a number of functional elements, that also means, there must exist benefit loss of one or several other functional elements while optimizing and gain benefit on one particular functional element, and vice-versa. 1. Package issues: when product sales market and sales prices are in the same premise, assuming that other cost factors do not change, then spend per sent less in packaging, which is bound to gain a cent back, packing cost less , the profit get higher. However, once the goods into circulation, if the packaging saving reduced the protective effect of the product, resulting in a large loss, it will cause degradation of the functional elements of storage, handling, transport and the great decrease in work efficiency. Obviously, benefits of package activities is at the expense of other areas. There are billions commodity losses in circulation every year due to poor packaging, which is the demonstration of “The Reversal”

in distribution activities, companies often caught in a dilemma: on the one hand, the increasingly fierce market competition requires enterprises to continuously improve the quality of their delivery service; but on the other hand, the improvement of the quality of delivery service will inevitably lead to higher distribution costs. Quality and cost of the distribution services form a contradiction. The improvement of the quality of service can enhance the corporate image and reputation, and increase corporate profits. But improve the distribution costs will also reduce profits. This is "The Reversal" phenomenon in distribution. The root cause of conflicting goals in the logistics system: The main reason lies in the conflict between lower-level sub-goals and the methods used to achieve the goals of each sub-goal---the effective measures of a sub-goal will adversely affect the achievement of another sub-goal, resulting in a conflict between goal elements