The current demands of logistics enterprises for intelligent logistics mainly cover logistics date, logistics cloud, logistics models and logistics technology, indicated He Liming, directors of the China Federation of Logistics & Purchasing, at the 2017 Global Smart Logistics Summit. The intelligent logistics market has reached 200 billion yuan in 2016 and it is expected to exceed 1 trillion yuan by 2025.
A market of 1 trillion yuan
The summit held yesterday attracted various business tycoons, including Ma Yun, chairman of the board of Alibaba, Tong Wenhong, chairperson of Cainiao, and senior management of Yuantong, Yunda and Tiantian. Tong pointed out that logistics are experiencing significant changes in all sectors of the supply chain. “New logistics” will be an express way for the implementation of the “five new” strategy.
The Chinese express delivery industry has maintained a growth of over 50 percent for six consecutive years with an average of 80 million packages every day. A total of 31.28 billion packages have been delivered. It is expected to double by 2020.
Ma expected that the daily average packages will reach 1 billion in the following five to eight years. It will bring opportunities and challenges.
He pointed out that Chinese logistics is mainly driven by consumption. The total amount of corporate and civil logistics reached 725.1 billion yuan, representing an increase of 43 percent year on year. The expansion of consumption, the consumption for e-business in particular, will promote the growth in logistics.
Meanwhile, with the improvement in the market concentration, logistics leaders saw increases in business. Statistics show that there are nearly 300,000 logistics companies in China. The main business revenue of top 50 logistics enterprises reached 840 billion yuan in 2016, representing 11.5 percent of the revenue in the whole logistics industry. Their market shares also hiked.
It is noteworthy that as a labor intensive industry, the logistics industry is facing a labor shortage of about 20 percent. Enterprises have to conduct technical and equipment upgrading and improve the informationized, automatic and machinery level of the logistics industry.
He pointed out that coordination and sharing is the core of intelligent logistics. The current demands of logistics enterprises for intelligent logistics mainly cover logistics date, logistics cloud, logistics models and logistics technology. The intelligent logistics market has reached 200 billion yuan in 2016 and it is expected to exceed 1 trillion yuan by 2025.
Suggestions from Ma
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Ma said that logistics industry created a huge miracle over past ten years and it deals with nearly 100 million parcels one day at present. But the one who will face impact and challenge in next ten years will certainly be the creator of miracle in last ten years.
Ma called on all of the logistics companies to devote more in technological research and development, which will become source of profits of the logistics companies in the future.
In addition, logistics companies must attach great importance to technological talents, introduce modernized management, avoid traditional development model of family-owned corporation and reserve talents for the future. Ma suggested that after raising funds through IPO, express logistics firms should use the funds in talents, technologies and joint projects instead of fighting at close quarters.
Ma added express logistics companies must consider change in organizational structure. “Only by competing in technology configuration ability and delivery staff’s service ability can they gain market share and profits from the 1 billion parcels in the future.”
Trend with intelligence
Taking usage of logistics robots for instance, He pointed out that with the rapid iteration of artificial intelligence technology, it is expected that every 10,000 people will use about 5 logistics robots in next 5-10 years.
Noticeably, Cainiao boosted the connection and opening of basic logistics data in last four years. According to Cainiao’s president Wan Lin, smart logistics will focus more on liberation to upgrading of small- and medium-sized logistics companies. It is predicted that Cainiao will solutions to intelligent supply chain to over 10,000 small- and medium-sized brands in next few years. Besides ability of data analysis which is basic and universal, these solutions include a series of customized ultimate application ability.
In addition, Cainiao will also promote utilization of international cutting-edge intelligent equipment in logistics industry. The company introduced an ACE plan yesterday, which proposed to launch 1 million new energy smart logistics vehicles in five years, cooperate with financial institutions to provide 50-billion-yuan financial service in terms of supply chain to logistics companies, operation enterprises and delivery drivers, and provide support in terms of market guidance and financial services.
Translated by Star Zhang and Vanessa Chen
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