research on development strategy of automobile reverse logistics based on swot analysis

Available online at www.sciencedirect.com ScienceDirect Procedia Engineering 174 (2017) 324 – 330 13th Global Congress on Manufacturing and Management, GCMM 2016 Research on Development Strategy of Automobile Reverse Logistics Based on SWOT Analysis Lian Zhikanga a Management Engineering Department, Zhengzhou University, Zhengzhou, China Abstract This paper first analyzes the research significance and purpose of the paper, then uses the SWOT analysis method to list the SO strategy, the ST strategy, the WO strategy, the WT strategy, and the SO strategy of the corresponding SWOT in view of the present situation and problems of the reverse logistics of the automobile industry in China Combined with China's automobile reverse logistics industry characteristics, pointed out that China's specific reverse logistics development strategy of the automotive industry © 2017 Published by Elsevier Ltd Ltd This is an open access article under the CC BY-NC-ND license 2016The TheAuthors Authors Published by Elsevier (http://creativecommons.org/licenses/by-nc-nd/4.0/) Peer-review under responsibility of the organizing committee of the 13th Global Congress on Manufacturing and Management Peer-review under responsibility of the organizing committee of the 13th Global Congress on Manufacturing and Management Keywords: reverse logistics of automobile industry,SWOT,strategy Introduction Over the past few decades, China's economic development with each passing day, in this tide of rapid economic development, the national standard of living is getting higher and higher, getting better and better In recent years, China's auto production increased substantially, and a large number of state-owned car brands to join the automotive market, the price of cars compared to the previous, with a significant reduction Many families have the ability, but also the desire to buy cars, cars have become a mass consumer products According to statistics, in 2015, China's car ownership has reached 172 million, per 100 families have 31 cars, is the world's second largest car ownership However, the reverse logistics of China's automobile industry is not as prosperous as the production and sale of automobiles According to China's auto scrapping standards, the service life of automobiles is generally 15 years, which means that the cars purchased by ordinary people in 2001 will be scrapped in 2016 Time period According to statistics, this data is probably between million to million In recent years, car sales growth rate of 9.5%, which *Corresponding author Tel.: +1-571-366-6556.E-mail address: 1207124175@qq.com 1877-7058 © 2017 The Authors Published by Elsevier Ltd This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/) Peer-review under responsibility of the organizing committee of the 13th Global Congress on Manufacturing and Management doi:10.1016/j.proeng.2017.01.147 Lian Zhikang / Procedia Engineering 174 (2017) 324 – 330 means the end of thirteen five, China's car scrap will be more In recent years, China's air pollution, water pollution, land pollution, endless news reports, and about 70% of these pollution is produced by the manufacturing enterprises, the automotive industry as China's economic pillar of China's economic development has a great role in promoting However, the automobile industry consumes a lot of steel each year, the production of these steel not only consume a lot of coal, iron ore, but also caused serious environmental pollution If the automotive industry does not waste vehicles for a reasonable recovery and disposal, will be on our environment and their own business profits have a huge impact This year, the state has attached more and more importance to environmental protection issues, put forward the scientific development concept, sustainable development and a series of national economic development attitudes The automotive industry as a pillar industry of China's economy, but also to respond to the call of the state, and actively carry out the automotive industry reverse logistics business, not just the product recall, including the disposal of used cars, the automotive industry, reverse logistics For enterprises, the short term is certainly to pay a certain price, but in the long run, the development of automotive reverse logistics not only for enterprises, countries are good z For enterprises: the implementation of reverse logistics can not only save resources to a certain extent, reduce business spending, but also improve their own unqualified products to control and improve the quality of enterprise management system For enterprises in the supply chain downstream, the relaxed return policy, can enhance the trust between enterprises, thereby enhancing the competitive advantage of enterprises z For the country: the automotive industry reverse logistics can not only reduce the degree of environmental pollution, but also can lead the country's economic development, to solve some of the employment problem, and to a certain extent, reduce the country's energy import pressure However, China's automotive industry reverse logistics management and research is still in the recall of the problem products, there are many problems, many small car manufacturers did not carry out this business Therefore, this paper mainly points out the current situation and problems of the reverse logistics development in China's automobile industry, and puts forward the corresponding solutions according to the SWOT analysis matrix The SWOT Analysis of Automobile Reverse Logistics Development 2.1 The Development of Automobile Reverse Logistics In recent years the rapid development of China's automobile industry, automobile production and sales are rising sharply, according to the latest statistics, in March 2016, China's auto industry production and sales growth rate is 8%, the agency predicted that the next 10 years, There is still a large demand for automobiles A large number of third-tier and fourth-tier cities not have enough car ownership Thus, China's automobile market demand is huge For example, see Fig Fig.1 China auto sales and year-on-year growth line chart 325 326 Lian Zhikang / Procedia Engineering 174 (2017) 324 – 330 At present, China's automobile industry has formed several large state-owned automobile enterprises, such as SAIC, FAW, Dongfeng and Changan, and several private automobile enterprises such as Geely, Chery, BYD and Great Wall, and a series of small specialized automobile companies Many large car companies have their own logistics and distribution network, and logistics facilities, their forward logistics has been developed better, a lot of third-party logistics companies are more concerned about the positive logistics of these car companies However, these companies reverse logistics services or in a more chaotic, disorderly competition Most of the car company is only in the problem of product recall, will be related to the reverse logistics For example, see Fig Fig.2 Car recall volume in China in the past 12 years Although the reverse logistics of the automobile can utilize the existing services and facilities of the forward logistics to a certain extent, because the difference between the reverse logistics and the forward logistics is still relatively large, the reverse logistics can easily conflict with the forward logistics In addition, Automobile enterprises on the importance of reverse logistics is not enough, only the problem of the product was recalled, and the treatment of scrap cars almost no, now China's waste car dealings are often designated by each local government car dismantling The company's processing capacity of waste car products is generally not very strong, the majority of these scrap car original parts will be disassembled into scrap metal to recycling, which is the value of waste vehicles can be used as a waste The number of waste cars in China is very large, probably less than half will be recycled For example, see Fig Fig.3 China's nearly 10 years of car scrap 2.2 SWOT analysis of automobile reverse logistics 2.2.1.External opportunity analysis z Policy to support the development of the automotive industry, reverse logistics consumption The central government vigorously promote the scientific concept of development, sustainable development, and the sustainable development into the thirteen five-year plan, local government reverse logistics of the car also has certain subsidies, these policies will vigorously promote the development of the automotive industry, reverse logistics [1-4] Lian Zhikang / Procedia Engineering 174 (2017) 324 – 330 z Market demand to promote the development of automotive reverse logistics From the development of China's automobile industry, as well as China's current development of the automotive industry's reverse logistics (waste car recycling, recall volume is very small compared with the developed countries) So in the current rapid development of China's automobile industry environment, China's automobile reverse logistics market prospects are enormous z Considerable profits stimulate the development of reverse logistics in the automotive industry With the increase in resource pressures, rising raw material prices, as well as China's rising labor costs, many auto companies are gradually rising spending The reverse logistics can use waste car recycling, reducing the amount of raw materials, automotive steel, non-ferrous materials, parts and components can be recycled more than 90%,The cost of making the engine again is 40% to 50% of the new engine,Manufacturing in general cost savings of 50%, 60% of the balance of energy, saving 70% of raw materials, which to some extent, can reduce the cost of business expenses 2.2.2 Threat analysis z Foreign logistics enterprises to enter China In recent years, a large number of foreign giant logistics enterprises (UPS, FedEx) to enter China, to carry out logistics related businesses, many large domestic companies outsource their logistics to these giant logistics companies China's automotive logistics enterprises are very large compared to these giants, regardless of size or automotive logistics services, there is a certain gap z China's reverse logistics in the automotive law is not sound enough The development of any industry need laws and regulations to protect the need to use the law to create a fair, just and secure market environment, and the development of China's automobile reverse logistics is still a big problem, which requires more laws and regulations to protect 2.2.3 Internal advantage analysis z China's auto industry from the beginning of the FAW to the present, has gone through decades of development, the entire automotive manufacturing system, consumer system network is perfect [5-10] z To improve the corporate image In the past, customers concerned about the price of goods, quality and so on, and now people in the purchase of goods, the daily behavior of the manufacturer, the corporate image of the company's image, But also often about the customer's decision, a green, socially responsible company, will certainly win the trust of everyone Therefore, the implementation of reverse logistics enterprises, not only to improve corporate image, more can bring real business income z China's auto industry market share is relatively concentrated, the former several large automobile manufacturers have accounted for a large proportion, such as SAIC, FAW, Dongfeng, Changan four large-scale automobile manufacturers accounted for 2015 Annual sales of 63% This is very beneficial for the development of reverse logistics 2.2.4 Internal weakness analysis z Most automotive companies not fully understand the reverse logistics Most of the automobile enterprises in China only focus on product research and development and product sales up, did not notice the reverse logistics in this area, let alone to reverse logistics as a core business strategy, and these auto companies are often There is no concept of the development of modern logistics, they believe that reverse logistics is a burden, product recycling will cause damage to the image of the enterprise, even if the automobile enterprises to develop reverse logistics business, is forced by national laws and regulations, the problem products Recall, but did not focus on the disposal of used cars z The application of information systems less The rapid economic development, making more and more types of products, products, transportation time is shorter and shorter, there is no information system support, it is difficult to imagine a country's logistics system is how it works The development of the reverse logistics logistics system in the automobile industry needs the support of reverse logistics electronic information system However, the 327 328 Lian Zhikang / Procedia Engineering 174 (2017) 324 – 330 reverse logistics system in China's automobile industry is almost no Because of the complexity of reverse logistics, reverse logistics information system is difficult to establish in the forward logistics system , And many companies not want or not have the funds to build such a reverse logistics information system information system z Domestic lack of a large number of reverse logistics talent The rapid development of the economy has promoted the rapid development of the logistics, and the shortage of resources Strategic Countermeasure of Vehicle Reverse Logistics SWOT Analysis 3.1.Based on the SWOT analysis of automotive reverse logistics development strategy The internal strengths, internal disadvantages, external opportunities and external threats listed above can be divided into four strategies: the SO strategy, the ST strategy, the WO strategy and the WT strategy by mixing these four internal and external factors The analysis results are as Table Table 1.The SWOT Matrix of Developing Reverse Logistics in China 's Automobile Opportunities Threats Policies and regulations to support the development of reverse logistics Market demand to promote the development of reverse logistics of the automotive industry Considerable profits stimulate the development of reverse logistics in the automotive industry SO strategy Foreign logistics enterprises to enter China, China's logistics enterprises threat China's reverse logistics in the automotive law is not sound enough China's automobile manufacturing enterprise industrial system, positive logistics network integrity To improve the corporate image China's auto market share is relatively concentrated, the former several large car manufacturers accounted for 80% of China's auto market To develop reverse logistics services To develop large-scale reverse logistics market China's auto market share is very concentrated Weaknesses WO strategy In the car to focus on the market area to carry out limited reverse logistics services, grasping the opportunity to carry out the reverse logistics services to other regions The introduction of professional personnel and services In this case, part of the reverse logistics service can be outsourced to the third-party logistics company WT strategy Most enterprises not fully understand the reverse logistics The application of information systems less Domestic lack of a large number of reverse logistics talent Only in the limited reverse logistics services in the service, to avoid competition Because of their own professional and technical personnel and defects, coupled with increased competition in the automotive market, companies not have the ability to carry out reverse logistics business In this case, the Chinese auto companies, reverse logistics can be all the services outsourced to third-party logistics companies External conditions Internal conditions Strengths Therefore, China's auto companies, it is entirely possible to use self-developed model to carry out reverse logistics services ST policy On the lack of a large number of reverse logistics automotive talent The strength of China's auto companies and foreign enterprises is not enough resistance Domestic reverse logistics laws and regulations are not sound enough For Chinese enterprises, we don’t have to carry out car reverse logistics services Lian Zhikang / Procedia Engineering 174 (2017) 324 – 330 3.2.Automobile reverse logistics development strategy implementation SWOT analysis is to analyze the internal environment and external environment to achieve a strategic objective for the development of strategic choice.Internal and external environment are particularly good when companies should vigorously promote the market expansion strategy; the internal environment and the external environment are particularly poor, companies should vigorously promote the market to maintain the strategy; if the internal environment is particularly good, and the external environment is particularly poor , The enterprise should choose a limited development strategy; the last one is particularly poor internal environment, the external environment is particularly good, you should choose service extension strategy [11-15] For our country automobile industry reverse logistics development present situation, our country automobile manufacture industry after several decades of development, basically formed several big automobile enterprises to monopolize the domestic consumer market situation, these several big automobile manufacture enterprise all has The ability to develop automotive reverse logistics services, which China's automotive reverse logistics services is a good thing But in recent years, with China's accession to the WTO, more and more foreign logistics enterprises to enter China, their automotive reverse logistics service level, they master the waste car processing methods than I too strong, this external environment The impact of threat on the development of automobile reverse logistics in China can not be ignored In this case, the limited development strategy is the development of China's automobile enterprises reverse logistics preferred strategy When China's automobile reverse logistics enterprises have the ability to overcome these threats, China's automobile reverse logistics development will usher in a real spring market expansion period [16-18] Fig.4 SWOT combination strategy diagram In view of the current status of reverse logistics, we should choose a limited development strategy, this strategy can make our auto industry to play their own advantages, and to avoid competition with foreign giants logistics enterprises, specifically, the reverse of China's auto industry Logistics implementation plan is that in the production process, the production of internal logistics between the manufacturers themselves, one can reduce production costs, the second is their own products and product lines for better protection Car raw materials, spare parts, such as the supply of logistics and its reverse logistics, should be handed over to the professional third-party logistics enterprises In the automotive sales logistics, as well as sales of recycling logistics, you should take part in outsourcing, and the two sides should reach a state of co-operation so that major automobile manufacturers can better analyze their own product problems, improve their production system Conclusion As a part of the reverse logistics industry, the reverse logistics industry of automobile is not only the recall of problem products, but also the recycling of waste products It emphasizes the development of reverse logistics and 329 330 Lian Zhikang / Procedia Engineering 174 (2017) 324 – 330 reverse logistics But also can save resources, protect the environment and enhance the competitiveness of enterprises, is the future of the world's economic development of the new trend This paper starts from the basic theory of reverse logistics, expounds the concept of reverse logistics and the development and development of reverse logistics at home and abroad, puts forward the nature of the concept of reverse logistics, combined with the definition of China's automobile industry, gives the definition of reverse logistics in China's automobile industry, Then, by reviewing a large number of reverse logistics data of China's automobile industry, the paper summarizes and analyzes the development status of reverse logistics in China's automobile industry Based on the development of reverse logistics in China's automobile industry, this paper constructs China's auto industry development based on the reverse logistics status quo of China's automobile industry Reverse Logistics SWOT Matrix Finally, through the SWOT analysis, the author put forward the concrete strategy of the reverse logistics of the automobile industry in our country Acknowledgements This work is supported by the Excellent Young Teacher Development Fund Project of Zhengzhou University (Foundation No 2015SKYQ15) References [1] LIU 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