He who controls the supply chain controls the future.
Release date:
2021-11-22
Author:
Jinhua Logistics
Under the new development paradigm, enhancing integrated supply chain service capabilities has become an imperative for logistics companies undergoing transformation—and a critical battleground in the competitive logistics market.
Whether it’s a mandatory choice or a quick-response question, to truly nail this challenge, we first need to examine the value proposition of integrated supply-chain services.
From a market‑driven perspective, integrated supply chains are at the forefront of epoch‑defining transformations across the consumer, production, and distribution sectors, while also serving as the primary engine for their continued evolution—this has become an industry consensus. On the one hand, whether to support the internal transformation and growth of logistics firms or to navigate intensifying market competition, the pivotal role of logistics in bridging production and consumption is now unmistakable. On the other hand, market demand for speed, cost efficiency, and quality in logistics and supply‑chain services continues to rise, compelling companies to consistently meet diverse stakeholder expectations and adapt accordingly—moving beyond merely “doing what they do best.”
From a logistics perspective, sectors such as express delivery, port and shipping, rail freight, and air transport will remain stuck in the traditional logistics category unless they develop and refine their own integrated supply-chain solution capabilities. Not only will customers grow weary of conventional services, but capital will also steer clear of these traditional business lines.
From the perspective of the trade and commerce environment, as the integration of domestic and foreign trade accelerates and new trade models such as cross-border e‑commerce gain momentum, brand owners and emerging consumers are increasingly demanding integrated, convenient, and internationally oriented supply chains. Consequently, end-to-end service capabilities have become a prerequisite for market selection.
From the perspective of industrial and supply-chain collaboration, under the combined influence of the pandemic, unforeseen events, the global economy, and trade protectionism, enhancing China’s capacity for independent and controllable industrial and supply chains and elevating their modernization level—while reshaping new competitive advantages in the international arena—is a critical task for Chinese logistics enterprises, particularly for industry-leading firms. Moreover, fostering integrated and innovative development between industrial chains and logistics supply chains—by strengthening supply-chain coordination, optimizing resource allocation, streamlining processes, and improving organizational synergy—to deliver Chinese‑style solutions to global customers constitutes the mission of today’s leading logistics companies.
In fact, integrated supply chain services can both deliver end-to-end solutions that span from supply chain strategy to execution, and provide seamless implementation support—covering everything from planning and network design to day-to-day operations. Taking JD.com and SF Express as examples, In 2020, revenue from JD Logistics’ integrated supply chain accounted for 75.8% of its total revenue. Meanwhile, in 2020, JD Logistics served more than 190,000 corporate clients. SF Express, driven by customer needs and supported by its extensive product portfolio and robust domestic and international network infrastructure, delivers high‑quality last‑mile logistics services. It also extends its reach upstream and downstream along the industry value chain, providing industry clients with efficient, stable, and agile digitalized, integrated supply chain solutions that span procurement, production, distribution, sales, and after-sales support. In 2020, SF’s overall supply chain business generated revenue of RMB 7.104 billion, excluding tax, representing a year-on-year increase of 44.45%.
As evidenced by data from JD.com and SF Express, once logistics companies develop integrated supply-chain capabilities, they are poised to usher in another period of robust growth.
Of course, as supply chains undergo end-to-end digitalization and the “supply chain + ecosystem” mindset takes root, demand for supply-chain digitization and supply-chain services is set to grow markedly. If integrated supply-chain services lack resilience, their digital‑intelligence foundation remains fragile, and their quality‑driven offerings fail to earn customer trust, they will inevitably be phased out by the market.
Meanwhile, logistics and supply-chain solution providers that can firmly establish their own digital‑intelligence foundation, continuously strengthen the resilience of their logistics networks, and empower customers with high‑quality services are sure to prevail in the future.
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