Circulation processing will bring the following economic benefits:

1. Centralized blanking through circulation processing, and products with simple specifications shipped directly from manufacturers will be processed according to user requirements. material. For example, steel plates are sheared and cut; wood is processed into plates, squares, etc. of various lengths and sizes. Centralized blanking can make the best use of high-quality materials, use small materials in large applications, and rationally tailor them, which can significantly improve the utilization rate of raw materials and have good technical and economic effects.

2. Users who use small quantities or meet temporary needs do not have the ability to perform high-efficiency primary processing. Through circulation processing, users can save the investment, equipment, and manpower for primary processing, which is convenient for users. At present, the primary processing that is developing rapidly includes: processing cement into raw concrete, processing logs or boards and square materials into doors and windows, steel plate pretreatment, shaping and other processing.

3. In the case of decentralized processing, due to the limitations of the production cycle and production rhythm of the processing equipment, the equipment is used loosely and sometimes tightly, making the processing process unbalanced and the processing capacity of the equipment cannot be fully utilized. Circulation processing is open to the whole society, with large processing quantities, wide processing scope, and many processing tasks. In this way, by establishing centralized processing points and using some specialized machines and equipment with high efficiency, advanced technology and large processing capacity, on the one hand, the processing efficiency and processing quality can be improved, and on the other hand, the equipment utilization rate can be improved.

4. Circulation processing cannot be compared with transportation and storage in realizing the two important functions of time utility and place utility. Therefore, circulation processing is not the main functional element of logistics. In addition, the universality of distribution processing cannot be compared with transportation and storage. Distribution processing is not necessary for all logistics activities. But this does not mean that circulation and processing are not important. In fact, it cannot be underestimated. It has the role of supplementing, improving, improving and enhancing, and can play a role that other functional elements such as transportation and storage cannot. Therefore, the status of circulation processing can be described as: improving the level of logistics and promoting the development of circulation towards modernization.

5. Circulation processing is a low-input, high-output processing method that often solves big problems with simple processing. In practice, some circulation processing companies fully realize their value by upgrading their product quality by changing product packaging; some circulation processing companies can significantly increase product utilization by 30% or even more. These are difficult to achieve by adopting general methods in order to improve productivity. Practice has proved that the profits provided by circulation processing are no less than the profits mined from transportation and storage. Therefore, we say that circulation processing is an important source of profits for the logistics industry.