5.2 The Strategy of the Micro Logistics Cost Reduction
5.2.1 The Implementation of the Total Supply Chain Management
Firms today increasingly consider total supply chain management to be a major vehicle to gain a competitive advantage
in turbulent markets. By implementing the total supply chain management, the flow of goods especially the unnecessary
duplication processes can be streamlined. For example, through adopting the total supply chain management in the
circulation of goods, the supply chain composed by the manufacturers, third party logistics companies, sales businesses
and consumers can become a whole system, and then achieve the integrated logistics. To link the logistics activities
from the total supply chain, and focus on the interaction and coordination among various logistics links, especially on
the middle links(such as the scientific inventory management which can reduce the inventory cost; outsourcing which
can shorten the in-transit time of goods, reduce the flow of goods and the cost and losses of this process; efficient
distribution which can reduce the distribution cost of transportation by decreasing the transport, increasing the rate of
loading ,arranging reasonably for the allocation plan of vehicles and choosing the best routes and means of delivery,
etc.). On this basis above and with the help of the modern information management system to achieve the optimal
control for all as the logistics links, and make all the links processing become more accurate and fast.