Industry Insights | 2020-11-03

"Development Trends of Smart Logistics"

In recent years, the integration of technology and logistics has accelerated the emergence of smart logistics. Smart logistics, underpinned by the Internet of Things (IoT) and big data, represents a new ecosystem that reshapes industrial division of labor, restructures industrial frameworks, and transforms development models through collaborative innovation and advanced AI technologies. Supportive policies have been introduced to guide the development of "Internet+" enabled efficient logistics, driving cost reduction, efficiency improvement, and industrial transformation.

COVID-19: A Catalyst for Smart Logistics
During the pandemic, logistics companies leveraged big data, AI, and 5G to ensure supply chain resilience. Technologies like drone-based sorting systems demonstrated significant advantages in enhancing efficiency and reducing infection risks. These innovations not only strengthened emergency response capabilities but also showcased the long-term potential of smart logistics in crisis management and operational optimization.

Key Characteristics of Modern Smart Logistics

  1. "Internet+" Logistics Boom:

    • Platforms like Manbang Group exemplify resource-sharing models, breaking traditional boundaries and maximizing asset utilization. During the pandemic, such platforms enabled real-time freight coordination and data-driven decision-making.

  2. IoT Proliferation:

    • Over 5 million trucks in China now use BeiDou navigation, while IoT-enabled facilities create a "connected logistics" infrastructure—the foundation for smart logistics.

  3. Data-Driven Decision Making:

    • Operational digitization generates actionable insights, transforming logistics management. "Datafication" is now critical for intelligent operations.

  4. Cloud-Powered Services:

    • Cloud platforms integrate and manage logistics data, enabling secure, standardized services and fostering industry-wide digital transformation.

  5. AI's Expanding Role:

    • Applications like autonomous vehicles, robotic warehouses, and unmanned delivery systems are redefining efficiency. Chinese firms (e.g., Cainiao, SF Express) are pioneering these technologies, competing globally.

Challenges and Opportunities
Despite progress, China's logistics costs (14.4% of GDP in 2020) still exceed developed economies (~10%). Key hurdles include:

  • Standardization Delays: Fragmented tech systems hinder interoperability.

  • Infrastructure Gaps: Uneven IT adoption limits data sharing.

  • Last-Mile Weaknesses: Over-reliance on manual processes persists.

  • Talent Shortage: Demand outstrips supply for AI/IoT-skilled professionals.

  • Emergency Preparedness: Pandemic exposed vulnerabilities in crisis logistics.

  • Global Supply Chains: Strengthening cross-border digital links (e.g., "Digital Silk Road") is imperative.

Path Forward
Government: Accelerate infrastructure investment (5G, IoT) and policy coordination.
Enterprises: Scale R&D in automation (e.g., Alibaba’s AGVs, SF’s drones).
Education: Bridge the skills gap with interdisciplinary training programs.

Future Outlook

  • 2025 Projections: Smart logistics market to exceed ¥1 trillion; robot density to reach 5 per 10,000 workers.

  • Sustainability: Green packaging/transport will gain traction.

  • Global Leadership: Convergence of AI, blockchain, and IoT positions China to transition from "logistics giant" to "logistics powerhouse."

Smart logistics—a fusion of technology and tradition—is poised to redefine global supply chains, driving economic resilience and innovation.

 

Latest Recommendations