Construction of Theoretical Framework of Modern Regional

Logistics Planning

Cui Shiyue

School of Automation, Northwestern Polytechnical University, Xi'an, Shanxi, 710072, China

Keywords: Modern Regional Logistics, Logistics Planning, Theory Construction.

Abstract: Economic development provides supports for development of modern regional logistics. Despite certain

degree of development in regional logistics, a perfect planning theory of modern regional logistics has not

been established in China. The construction of theory framework of modern regional logistics planning has

become an important issue in new period of logistics development, forming unified and comprehensive

logistics theory. Meanwhile, it is also the requirement of changing situation of logistics economic

development and new round of logistics development planning. Focusing on problems of modern regional

logistics, the work analyzed basic theoretical framework of logistics, combined with the existing logistics

management theories.

1 INTRODUCTION

Global economy has been developing in 21st century

with the deepening of economic globalization,

upgrade of competition, cooperation among

countries and regions, as well as expansion of

economic exchanges. Meanwhile, regional logistics

has obtained growth with regional economy.

Distribution costs in economic activity of various

industries can be effectively reduced with good

logistics system, thereby saving unnecessary service

and traffic costs, and enhancing economic efficiency

of entire industry. Therefore, modern regional

logistics industry has become an important support

for regional economic development. Trade between

economies and regions has been expanded with

continuous development of global economic

integration. As the basic unit of global economic

development, the quality of regional development

has a direct impact on the improvement of national

and regional economic level. With the development

of economic integration, the division of labor

between major economic industries has been

increasingly deepening. Links among various

economic agents in the region increasingly depend

on regional logistics system. Thus, regional logistics

has become an important impetus for economic

development. However, traditional regional logistics

theories and structures cannot adapt to the needs of

modern regional logistics with change of times. New

logistics system has been formed and developed

through continual exploration of new economic

situation. Advanced scientific and technological

means are used for most basic control and

management of the entire logistics process, thus

achieving the most efficient production value of the

whole modern logistics chain. This is the

fundamental characteristic of modern regional

logistics.

2 NECESSITY OF

CONSTRUCTING

THEORETICAL FRAMEWORK

OF MODERN REGIONAL

LOGISTICS PLANNING

2.1 Overview of Modern Theoretical

Construction of Regional Logistics

Modern regional logistics planning is based on

economic activity of an area and correct

understanding of the size and characteristics of

regional logistics, thus establishing a sound regional

logistics system. The development strategy of

regional logistics should be further planned and

constructed with the target of more effective

development of economic activities in the region.

Based on advanced logistics planning theory and

385

Shiyue C.

Construction of Theoretical Framework of Modern Regional Logistics Planning.

DOI: 10.5220/0006026903850388

In Proceedings of the Information Science and Management Engineering III (ISME 2015), pages 385-388

ISBN: 978-989-758-163-2

385

existing planning system, the construction of modern

logistics theory is designed to adapt to the basic

framework of modern regional logistics

development, forming a sound theoretical basis.

Based on traditional regional logistics theory,

modern regional logistics theory was developed

through reasonable application of traditional

materials, transportation channels, transport,

information tools, storage and vehicles. Combined

with basic theories, including modern economy and

logistics development theories as well as regional

economic theory, advanced information technology

and e-commerce are used for perfect combination of

logistics and economy. Thus, more scientific and

reasonable development can be promoted for

regional logistics planning.

2.2 Importance of Modern Regional

Logistics Theory Construction

1) Trend of Economic Development. Chinese

economy has obtained rapid development since the

reform and opening up. Meanwhile, the economy of

other countries keeps moving forward driven by the

technological revolution. The trend of global

economic integration is becoming evident, with the

deepening of cooperation between developed and

developing countries. As the basic unit of global

economic integration, regional development level

has a direct impact on global economy. In recent

years, regional economic cooperation becomes

increasingly common with the development of

globalization. Aimed at maintenance of common

economic interests and achievement of win-win

situation, they have in-depth cooperation in

economic and even political fields. Different

regional cooperation forms are established for

different purposes. For example, the Cooperation

Organization European Coal and Steel was set up for

tariff reduction and elimination of tariff barriers,

promoting mutual development of coal and steel

industries with coordination and common

development. So does European Atomic Energy

Community (EAEC). For better development of

regional economy, problems in current economic

coordinated development including shipping costs

saving, transport investment reduction, improvement

of operating margins and transaction time reduction.

Under this trend, modern logistics has become the

most important area in modern regional economic

integration, which is focused by the whole world.

Countries are busy carrying out studies to maximize

the use of regional logistics planning, striving to be

in the dominant position of regional economic

development.

2) Requirement of Costs Reduction for Inter-

regional Economies. From a macro point of view,

the development of inter-regional logistics economy

is the requirement of regional economic

development in all aspects. The rapid development

of modern regional economy needs support of

improved logistics planning system. The

requirement for regional logistics will be higher with

the faster economic development. Corresponding

logistics industries will continue to improve their

service system under huge interest and pressure. The

reason that regional economy rely on logistics

enterprises to such a large extent is decided by

significant reduction of transportation costs and time

for companies by regional logistics system. With the

development of society and more in-depth division

of work among enterprises, multinational companies

have been rising as an important component of

regional economy. For example, an automobile

manufacturer does not produce all necessary parts,

but import them from other professional enterprises

to obtain more profits. Then perfect regional

logistics system is needed to help enterprises

transport parts with least time, thus reducing

transportation time and cost, and improving

economic benefit of enterprises.

3) Promoting Development of Tertiary Industry. In

recent years, with the optimization and adjustment

of industrial structure in China, tertiary industry

becomes one of the industries greatly supported by

government. Modern logistics industry belongs to

tertiary industry, as an important pillar within the

industry. The development of modern logistics

industry can promote the development of

transportation, catering, wholesale and retail trade,

information industry, etc. Unemployment can be

solved to certain extent, which is conducive to

stabilizing social order and constructing harmonious

society. In addition, other industries driven by

development of logistics industry have increased the

proportion of tertiary industry in the whole industry

structure. Regional industrial structure will be

optimized, contributing to industrial structure

adjustment of entire society form, thus promoting

continuous development of regional economy. Good

regional economic environment provides basis

environment to attract foreign investment. Investors

from developed countries will take convenience of

logistics and transport as an important condition of

investment. Therefore, perfect logistics system has

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significant impact on improvement of investment

environment in the region.

3 BASIC THINKING OF

THEORETICAL FRAMEWORK

CONSTRUCTION IN MODERN

REGIONAL LOGISTICS

Theoretical framework construction of modern

regional logistics is a complicated process. A

relatively clear thinking is required as a guide to

make the process more effective, reasonable and

smooth. Thus, the basic thinking was analyzed as

follows, including theoretical basis of modern theory

construction, as well as main contents and principles

of regional logistics planning.

3.1 Theoretical Foundation

1) Modern Logistics Theories. Modern logistics

theories began to experience continuous integration

and partial systematization from 1970s, using

advanced information technology to improve their

logistics system. With systematic support of network

in 21st century, modern logistics has been

transformed into reduction of costs and achievement

of maximum profits, achieving sustainable

development of society in the long run. The scale of

modern logistics has also been expanded from

simple transportation logistics to comprehensive

process covering the entire product procurement,

including production, distribution, marketing,

consumption and recycling. Meanwhile, its function

has been transformed from original logistics

transport to logistics creation, struggling to achieve

overall optimization of modern logistics. Modern

logistics system in modern logistics theory is a

product of the times. As a large-scale and complex

system, it is included in the large systems of society.

The goal of modern logistics system is to use

resources on other systems within society, ultimately

achieving its overall goals through mutual influence

and interaction. Currently, domestic and

international researches on logistics theories more

focus on logistics lines. Further study on relations

among diversified network systems with different

levels has a very important role in construction of

multi-level and diversified regional logistics system.

2) Regional Economic Theory. Regional economic

theory includes Non-balanced Development Theory,

Gradient Theory, Growth Pole Theory and

Sustainable Development Theory. Regional

economic theory emphasizes mutual support in

terms of resources, transportation, information, and

funding among regions. The above four economic

theories are theoretical basis of economic activities

in the region's economies, providing important

theoretical support for regional supplies flow. The

major role of goods flow among regions is

emphasized in regional economic theory. Without

material flows, gradient trend of rapid growth will

not appear, not to mention the achievement of social

sustainable development. This is a serious problem

of regional logistics development. Therefore,

regional logistics economic construction should be

carried out under the guidance of regional logistics

theory, promoting regional sustainable development

with positioning analysis on regional logistics

development.

3.2 Basic Principle of Modern Regional

Logistics Planning

1) Satisfying Needs of Regional Economic

Development. Economic development of the region

is the ultimate goal of constructing modern regional

logistics planning theory. The size of regional

logistics market should be reasonably estimated,

thereby providing more appropriate logistics

services. Balance between supply and demand

should be achieved to greatest degree, with mutual

restraint and promotion with economic development

in the region.

2) System Principle. Modern regional logistics

system is a complex and complicated project. Sound

principles are necessary to provide guidance in

overall planning and rational development for full

and successful completion of the whole planning

process. Strength of various departments in logistics

should be fully mobilized, with mutual cooperation

and promotion. Reward and punishment system as

well a promotion system can be implemented in

internal departments, helping to enhance enthusiasm

and initiative of the entire department.

3) Coordinated Planning Principle. Regional

economic development aims at promoting regional

economy. Moreover, it should be coordinated with

development of other aspects, namely economy

should adapt to political and cultural development.

Therefore, coordinated planning principle becomes a

basic implementation principle of regional logistics

development.

4) Use of Existing Logistics Resources. Modern

logistics resources were established on the basis of

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traditional logistics resources. After years of

development, logistics industry has formed a

relatively complete system. Resources used in

traditional regional logistics have an important role

in development of modern logistics, including

storage, transport tools, and transportation routes.

Therefore, potential of the region should be fully

explored for logistics development.

3.3 Main Contents of Modern Regional

Logistics Planning

As an important component of modern regional

economy, construction of modern regional logistics

is a complex project. Development status of the

region should be firstly analyzed, fully

understanding logistics needs and development scale

of the entire regional economy. Conclusions will be

drawn after careful research and analysis.

Firstly, cautious attitude should be remained in

construction of modern regional logistics planning.

Operation laws of market should be respected with

scientific analysis on the size of entire logistics

market needs, reasonably analyzing natural and

cultural environment of the entire market. Scientific

outlook on development should be taken as guiding

principle, with the action program of building

environment-friendly society. Without destroying

natural environment, the whole regional logistics

should be reasonably constructed, promoting better

development of regional economy.

Secondly, hardware facilities necessary for

regional logistics development should be improved

under the premise of rational planning theory,

including plant and warehouse. In addition, regional

logistics network, as the perfect combination of

network and logistics, should be established to

improve the efficiency of logistics. Only with

hardware facilities can the value of human and

material resources be fully played.

Finally, logistics personnel should be actively

cultivated. Strong regional logistics economy

requires support of logistics personnel. Therefore,

personnel cultivation has become the focus of

logistics development under the condition of

abundant hardware facilities, which is also an

important aspect in modern economic theory.

Modern regional logistics planning theory is based

on modern logistics. Thus, modern logistics should

be firstly developed for drawing lessons, forming

more convincing modern logistics theory.

4 CONCLUSIONS

Through summaries of various economic and

international logistics theories, China has started the

construction project of modern logistics planning

combined with own experience. Complete planning

thinking is necessary for guidance in complicated

construction of theoretical framework. While some

achievements in modern logistics have been made in

China, there is a big gap compared with developed

countries. Therefore, deficiencies should be

recognized to improve planning theory of Chinese

modern regional logistics with the basic foothold of

modern logistics enterprises, thus promoting

sustainable development of regional economy.

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Wang, Li Xuegong. Theory and Framework of Modern

Regional Logistics Planning. World Standardization &

Quality Management, 2011 (1): 62-67.

Liu Binglian. Regional Logistics System Planning

Framework. Port Economy, 2010 (2): 11-14.

Li Qi. Theoretical Base and Evaluation System of

Regional Logistics Planning. Logistics Technology.

2014 (2): 192-194.

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