A company inevitably deals with four systems: cash flow, logistics, personnel flow, and information flow. These are crucial components of economic management. Many companies invest significant effort in streamlining and managing these systems. When I discuss system management with dealer friends, some say, "My company is small, there's not much to worry about. Everything is clear at a glance. We don't have the expertise for personnel and information flow, so they're hard to control. Cash is managed by my wife, so no problem. Logistics? Just deliver the goods, as long as they arrive on time. Simple."

Is logistics really simple?

A few days ago, I visited the market and was at a dealer's place when they were loading a truck for delivery to a suburban county (where they supply two supermarket chains in the city). I asked to ride along, and the dealer agreed. After finishing the deliveries, it was already afternoon. I had gathered the market information I needed, but since I still had things to discuss with the dealer, I said to the driver, "Shall we head back?" The driver bought two bottles of water and said, "No rush, let's rest a while." Later, I learned that if we returned then, any additional dispatch would require overtime, preventing an on-time finish. Just then, a man approached: "Hey, buddy, is this a city truck? Heading back to the city?" The driver nodded. "Can you take something for me?" "Where to?" "To **." I heard it was far from the dealer's company and quite a detour. I thought the driver would refuse. Indeed, the driver said, "Oh, that's too far out of the way." The man said, "How about 50 yuan for you two to buy a pack of cigarettes?" The driver glanced at me and said, "It's too far. A separate trip would cost at least 150 yuan. Add a bit more." The man said, "I see you're a straightforward guy. Since you're heading back anyway, I'll add 10 yuan. That's it. It's only a dozen or so boxes." The driver asked, "Where's the cargo?" "Not far. Okay, get in." The driver replied. At that moment, you'd think he was a professional freight negotiator. And so I got an unexpected city tour. I estimate we used at least an hour and a half more than usual, not to mention the extra distance. After unloading, the driver said, "Manager Zhang, it's not much, here's 20 yuan for a pack of cigarettes. Just a token." I said, "No need." The driver suddenly became anxious: "Look down on me? It's just for a pack of cigarettes? You deserve it for accompanying me all day." To avoid any suspicion of me reporting him to the dealer, and to save further argument, I accepted the 20 yuan.

I did not mention this to the dealer.

Another time, I rode with a dealer's truck to visit C-class outlets in the city. Besides the driver, there was also a sales supervisor. The supervisor suddenly asked me, "Manager Zhang, can you drive?" I shook my head embarrassedly: "No, but I plan to learn." I said it casually, but he replied, "Good, I know a place where you can practice." He had the driver take us to an abandoned factory. "Come on, try it?" I shook my head, "I wouldn't dare." He smiled and said, "I can't either, I'm learning." He then had the driver move to the passenger seat, and he took the wheel, asking the driver to teach him. The driver taught very seriously. I said, "Should we get back to the market?" He said, "No rush, it's fine, you rest too." I was speechless—we hadn't even started work, why rest? He practiced for a full two hours! Before returning, he said, "Manager Zhang, don't tell our boss." What could I say? I nodded, amused and exasperated.

Again, I did not mention this to the dealer.

First, don't question why I didn't report these incidents. I'm sure some bosses suspect their drivers take too long for a county trip or why they can spend a whole day in the city with just ten boxes. Is it really "orders from the front are sometimes not obeyed"? Why don't bosses ask? Is it trust? Why, when they do ask, do drivers always have plausible excuses?

Some bosses recognize this problem and reform vehicle usage policies, such as outsourcing logistics or paying per delivery. But this requires a certain delivery volume. Smaller dealers can't do that. Is there really no solution?

Through observation and analysis, I believe the main causes of increased logistics costs and expense leakage are:

  1. No time management: No one tracks how long each trip takes.
  2. No purpose management: Trips are made without clear objectives.
  3. No effect management: What benefits does each trip bring?
  4. No cost management: What is the cost per trip?
  5. No efficiency management: Is work efficient? Can it be improved? No one knows.

Based on management objectives, I've developed some logistics management plans. A key element is the use of a vehicle dispatch log.

The main functions of the dispatch log are to collect historical data, observe work efficiency, implement cost supervision, reflect work issues, and provide a basis for improvement.

I introduced a dealer friend to the dispatch log. Initially, to ensure detailed and accurate data, he spent half a month personally riding along all delivery routes. This shows his deep understanding of the logistics cost leakage problem. Practice has proven that his dispatch log management is now very successful. So the prerequisite for successful use of the dispatch log is detailed and accurate delivery data!

Warehouse Dispatch Log (omitted)

In fact, combining driver or delivery personnel wages with delivery costs can yield good results. But when the additional revenue from deliveries is too small to inspire drivers and delivery staff to prioritize company interests, combining it with dispatch log management becomes very necessary.

Of course, there are many other good management methods. As the saying goes, "Each has its strengths." For any management method to truly play its positive role, it must be adapted to one's own situation and require persistent effort. Only by turning systems into habits can we achieve the highest state of "management by non-interference."

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