Digital intelligence empowers the logistics industry to reduce costs and boost efficiency.

From traditional manual handling, delivery, and management to today’s unmanned warehouses, automated sorting, and intelligent last-mile delivery, the widespread adoption of digital technologies in the logistics sector has significantly shortened operational cycles and effectively reduced labor costs. “ Our research reveals that the primary contradiction in the logistics industry today is low costs at individual stages coupled with high overall supply-chain operating expenses. Low efficiency in resource allocation and sluggish circulation cycles are key factors driving persistently high logistics costs. ” Gan Jiahua, deputy director of the Urban Transportation and Modern Logistics Research Institute at the Planning Research Institute of the Ministry of Transport, believes that the characteristics and advantages of digital technologies—such as high speed, transparency, traceability, and ease of interaction—can address the inherent weaknesses in the logistics chain. These technologies are playing an increasingly significant role in shortening logistics lead times, improving delivery efficiency, reducing delays and losses, and lowering labor costs, thereby becoming a key driver for cost reduction and efficiency gains in the logistics sector.

Expand intelligent applications

This year “ Double 11” On the eve of the shopping festival, JD Logistics launched its latest… “ Goods-to-Person ” Solution, resolves no more than 10 In standard‑size container storage scenarios, automated equipment is costly and has limited capacity. According to the introduction, the system comprises intelligent wolf robots, automated racking systems, storage turnover bins, automated putaway and picking workstations, as well as a warehouse management system and a warehouse control system. Through modular design and product‑level optimization, the system enhances operational efficiency in warehouse space, reduces worker workload, and lowers operating costs. Moreover, digital technologies can address another major pain point in the logistics industry. —— Information asymmetry, as industry insiders often refer to it, “ The vehicle doesn’t know the cargo, and the cargo can’t find the vehicle. ” A difficult problem. “ Digital technologies can swiftly match the needs of both parties, streamline intermediary processes, efficiently connect goods with vehicles, and enhance transportation efficiency. ” Gan Jiahua said. “ This was shipped to Guiyang City, Guizhou Province. 80 Tai trenching machine—this was delivered to Huili City, Sichuan Province. 60 Taiwan orchard rotary tiller ……” Zhang Jianfeng, Executive Director of Chongqing Guanteng Machinery Co., Ltd., swiped his phone. “ Yunmanman "APP" The waybill list provides reporters with an overview of recent shipping activities. After years of development, Chongqing’s micro-tiller industry has transitioned from a traditional small‑workshop model to a stage of modernization. As production scales continue to expand, logistics costs have become a key factor constraining the growth of enterprises. “ Our clients are based throughout China. 20 With multiple provinces and thousands of service locations, how should freight rates be calculated in the face of complex routes, varying distances, fluctuating volumes, and dynamic market pricing? We set our prices based on the platform’s recommended rates; drivers who accept these rates will take the order, though they can also negotiate the fare. ” Zhang Jianfeng said. Hu Zhangyang, general manager of Chongqing Wanggeng Technology Co., Ltd., told reporters that previously, micro-tillers were first transported to a logistics park, then shipped by a logistics company to provincial or municipal transit hubs, and finally delivered to customers. This model involved multiple transfers, which not only led to equipment wear and tear but also drove up logistics costs due to information asymmetry. To address these challenges, Wanggeng Company integrated with a domestic digital freight‑transport platform. “ This not only saves on brokerage fees and the freight‑rate differentials caused by information asymmetry, but also eliminates transportation costs from the company to the logistics park, while avoiding equipment wear and tear from multiple shipments. Previously, each machine had to bear an average of… 2 With a loss rate of 10,000 yuan per shipment, the annual cost can amount to several hundred thousand yuan. After adopting a digital-platform-based point-to-point transportation service, the loss cost is virtually zero. ”

Accelerate digital transformation

Channels, hubs, and distribution networks are the building blocks of a modern logistics system. 3 A fundamental element. By rationally designing the logistics network and optimizing transportation route planning, it is possible not only to shorten logistics lead times and reduce transport distances but also to significantly cut logistics costs. Digital technologies play a crucial role in this process. This year… 4 In [month], the Ministry of Finance and the Ministry of Transport jointly issued the “Notice on Supporting and Guiding the Digital Transformation and Upgrading of Highway and Waterway Infrastructure,” with a focus on bolstering the national integrated, multi-dimensional transportation network. “6 axis 7 Corridor 8 Channel ” The main backbone network, along with national highways and high-grade national waterways within the scope of major national and regional strategies, will undergo digital transformation and upgrading. 7 In [month], the two departments announced the first batch of demonstration zones for the digital transformation and upgrading of road and waterway transportation infrastructure, including Beijing, Jiangsu, Zhejiang, and others. 8 A province has made the list. “ Enhancing the capacity and efficiency of logistics corridors requires a new generation of digital infrastructure. By leveraging IoT systems in conjunction with satellite‑based positioning data and real‑time traffic conditions, it is possible to optimize transport routes, avoid traffic accidents, and promptly bypass congested segments, thereby significantly improving vehicle throughput. ” Gan Jiahua told reporters that the development of digital infrastructure across road, rail, and waterway transport is focused on enhancing transport efficiency, safety, and service quality. In road transport, efforts are centered on building end-to-end smart highways and digital twin road networks that integrate intelligent construction, maintenance, and travel services. Waterway transport prioritizes the development of smart ports and navigable channels, along with related information‑infrastructure initiatives. Meanwhile, rail transport aims to upgrade railway information systems and advance the construction of smart railways. Operators in all sectors are actively exploring these avenues and have already achieved notable results. Nevertheless, the digital transformation of transport infrastructure still faces several bottlenecks, the first of which is standardization. The lack of unified data standards among different modes of transport hampers information exchange and system integration. To address this, it is essential to accelerate the establishment of technical standards for logistics data coding, management, and security, while harmonizing interface specifications across platforms to improve compatibility and facilitate seamless data sharing. Such measures will leverage high‑quality data flows to support more efficient logistics operations. According to a representative from the China Transportation Association, inconsistent vehicle standards also drive up logistics costs. For instance, when containers are transferred from ships to trains or trucks, discrepancies in dimensions, weight limits, and stowage requirements among different modes of transport lead to inefficient handoffs, necessitating numerous intermediate handling steps and extending transit times. Therefore, it is crucial to refine supporting facilities—such as dedicated railway sidings at logistics hubs, container yards, transshipment terminals, and connecting road networks—and to strengthen integrated collection‑distribution systems. This will help build a large‑scale, seamlessly coordinated logistics network that integrates trunk‑and‑feeder routes with warehousing and last‑mile delivery.

Optimize supply chain management

At present, the lack of an end-to-end management system—spanning from suppliers through distribution intermediaries to consumers—is a major bottleneck in China’s logistics sector. Experts believe that supply-chain collaboration platforms powered by artificial intelligence and large-scale models can integrate data across all logistics stages, creating an efficient ecosystem that enables real-time information sharing and end-to-end management. In recent years, Cainiao Logistics Technology has leveraged AI, big data, and IoT technologies to help businesses tackle complex supply-chain challenges. In the automotive industry, Cainiao’s solutions cover inbound logistics, factory logistics, finished-vehicle logistics, and spare-parts logistics. / After-sales logistics and other business scenarios. “ Previously, all our transportation order assignments were handled manually, with vehicle scheduling and carrier selection largely relying on experience. During the off-season, this approach could just about meet daily shipping demands; however, today we need to coordinate shipments across the country every month. 20 With tens of thousands of new vehicles, relying solely on manual order assignment and vehicle allocation is not only inefficient and costly but also prone to errors. Sometimes, to fulfill orders, employees must work through the night. ” Deng Xianfa, the project leader at SAIC-GM-Wuling Automobile Co., Ltd., told reporters that the company has partnered with Cainiao to develop an intelligent logistics dispatch system for complete vehicles, establishing a comprehensive multi-scenario algorithmic model and formulating optimal dispatch routes in terms of cost or delivery time, thereby… 60% Manual order allocation has been transitioned to automated system‑driven assignment, meeting customers’ demands for logistics services and timeliness. Moreover, through precise data collection and integration, all end users can instantly track the location of their shipments, enabling real-time visibility throughout the supply chain. According to Zuo Xinyu, Secretary-General of the Automotive Logistics Branch and the Logistics Equipment Professional Committee of the China Federation of Logistics and Purchasing, supply chain management in the automotive industry has consistently drawn on advanced practices from the retail sector. Logistics companies, exemplified by Cainiao, have deepened their engagement with the automotive industry, leveraging labor‑reducing equipment, digital solutions, and automation to unlock new possibilities for upgrading automotive supply chains. Reducing overall societal logistics costs is a systemic undertaking that requires not only focusing on transportation, warehousing, and management within the logistics sector itself, but also addressing product mix, industrial organization, and factor allocation to elevate the digitalization of supply chains. Experts recommend that, in terms of product‑mix optimization, big‑data analytics and artificial intelligence can be used to more accurately forecast market demand, enabling on‑demand customization and lean production while avoiding overproduction and excess inventory. In industrial organization, from sourcing high‑quality raw materials to optimizing procurement volumes, and across every stage—from transparent manufacturing to sales, distribution, and recycling—blockchain and IoT technologies can ensure full product traceability, giving consumers greater confidence in their purchases. Finally, in factor allocation, AI and machine‑learning algorithms can be employed to centrally coordinate and optimize the people, capital, and resources involved in the logistics chain, ultimately achieving efficient collaboration and optimal resource deployment across logistics, information, financial, and capital networks.

(Source: Economic Daily)