The digital engine is propelling the logistics industry into the fast lane.

As a foundational, strategic, and pioneering industry that underpins national economic development, the logistics sector, despite its enormous market size, has long remained—due to factors such as industrial layout, standardization, and organizational management— The “small, fragmented, and disorganized” state of the industry results in low operational efficiency and persistently high logistics costs.

The digital economy, as a new economic paradigm, has in recent years provided robust momentum for the sustained and healthy development of the economy and society. It has permeated every sector, accelerating the transformation and upgrading of industries across the board and serving as a pivotal lever for modernizing traditional sectors. Amid the digital wave, the logistics industry—long a mainstay of the economy—has undergone profound changes in its market environment, marketing strategies, capacity‑allocation structures, financial flows, and transaction models. Consequently, how to effectively leverage digital technologies to drive transformation and upgrading has become a central concern for many logistics enterprises today.

At present, in cloud computing, artificial intelligence, the Internet of Things, With the support of technologies such as 5G, the logistics industry is steadily accelerating its integration with cutting-edge modern technologies.

Especially under the combined impact of the pandemic and other factors, logistics enterprises seeking sustainable long-term growth must develop robust, resilient risk‑management capabilities, agile coordination skills, and enhanced service delivery. Underpinning these efforts is the power of digitalization. Consequently, the digital transformation of the logistics industry has become an urgent priority.

It is worth noting that Chinese logistics enterprises are actively leveraging a range of digital technologies to optimize business processes, transform their capacity‑allocation structures, enhance information sharing and connectivity, and achieve more efficient resource allocation—thereby making logistics smarter and safer. Companies such as Sinotrans, COSCO Shipping Logistics, JD Logistics, SF Express, RRS Supply Chain, and Ande Intelligent Logistics have all achieved significant results in digitalization and intelligent transformation. While successfully upgrading and transforming themselves, they also deliver high‑quality services to their customers and help drive cost reduction and efficiency gains across the industry.

Today, driven by digitalization, the logistics industry is accelerating its growth.

Over the past few years, the world has undergone profound changes, and the pandemic has brought a host of challenges, turning uncertainty into the new normal. Yet amid all this uncertainty, one thing remains unequivocally certain: the digital transformation trend is here to stay. Once merely a means for some companies to thrive, digitalization has now become essential for their very survival.

As a foundational and strategic industry that underpins national economic development, the logistics sector connects production on one end to the consumer market on the other. Despite its enormous market size, it has long remained—due to factors such as industrial layout, standardization, and organizational management— The “small, fragmented, and disorganized” state of the industry results in low operational efficiency and persistently high logistics costs. Moreover, with relatively low barriers to entry and severe service homogenization, the sector is mired in intense internal competition, leaving it stuck in a prolonged pattern of revenue growth without corresponding profit expansion.

This from near As evidenced by the share of total social logistics costs in GDP over the past five years, from 2017 to 2021, this ratio stood at 14.7%, 14.8%, 14.7%, 14.7%, and 14.6%, respectively. Although it declined by 0.1 percentage point in 2021 compared with the previous year, it remains significantly higher than the 8%–9% range that has long been stable in developed economies. This situation underscores both the considerable room for improvement in China’s logistics sector and the evolving demands of the national economy—no longer prioritizing speed and scale, but instead emphasizing quality enhancement and structural optimization, as the economy shifts toward greater efficiency and value. Underpinning this transformation is the driving force of digitalization.

At present, in cloud computing, artificial intelligence, the Internet of Things, With the support of technologies such as 5G, the logistics industry is steadily accelerating its integration with cutting-edge modern technologies. Accordingly, digital transformation has become an indispensable part of the growth trajectory for logistics enterprises. By embracing digital transformation, logistics companies can optimize and upgrade every stage of the transportation process, achieving transparent, intelligent, and standardized management—and ultimately reducing costs while boosting efficiency.

On this topic, Fu Zhendong, General Manager of Shanghai Zhixing Zhirong Supply Chain Co., Ltd., shared his perspective. He summarized the advantages of digitalization in the logistics industry as follows: 4: First, it facilitates supply-chain management across the upstream and downstream segments; second, it helps enterprises reduce costs in a rational manner; third, it supports the expansion of business offerings; and fourth, it drives innovation and development. He further noted that, particularly in cost reduction, the judicious application of digital tools can bolster a company’s profitability and long-term competitiveness. “At present, in certain niche markets, intense product homogenization has kept gross margins low for most firms. With limited market space and constrained growth opportunities, companies are left with no choice but to cut costs as a way to create a secondary growth trajectory. And among all approaches, digitally driven cost optimization led by technology stands out as the most effective path,” said Fu Zhendong.

He gave an example, saying: “In trunk‑line transportation, fleet management has long been a major concern for operators. From dispatching and loading to route optimization, relying on traditional methods not only keeps operating costs stubbornly high but also fails to boost truck drivers’ earnings. There’s no doubt that companies that fail to embrace digital transformation risk shutting down. To address this, many businesses are partnering with specialized digital logistics providers to build tailored smart logistics management systems. By leveraging digital freight‑forwarding platforms and implementing data‑driven operations, they reengineer internal workflows, enhance managerial efficiency, and strengthen service capabilities. This approach optimizes transport routes, increases load factors, and significantly cuts operational expenses, while also enabling end‑to‑end visibility and driving higher incomes for truck drivers—ultimately forging a core competitive advantage. These are the most tangible benefits that digitalization brings to logistics enterprises.”

It is clear that leveraging digital technologies to enhance the quality and efficiency of the logistics sector has become an indispensable path for logistics companies seeking to build their core competitiveness: evolving from traditional models to internet‑based ones, advancing from automation to intelligent systems, and shifting from labor‑intensive operations to talent‑driven ones. This series of transformations carries profound and far‑reaching implications not only for the development of China’s logistics industry but also for the broader Chinese economy. Likewise, this digitalization journey has become a battleground that logistics firms must enter—either by taking the initiative and striking first to gain the upper hand, or by responding forcefully in a do‑or‑die situation. In short, the digital transformation of logistics enterprises is no longer about simply surviving better; it is a critical imperative to align with the trends of our times and ensure long‑term viability.

In fact, the government has long since introduced relevant policies to support the digital transformation of the logistics industry.

On August 6, 2020, the Ministry of Transport issued the “Guiding Opinions on Promoting the Development of New Infrastructure in the Transportation Sector,” clearly stating that digitalization, networking, and intelligentization should serve as the main threads to enhance efficiency, expand functionality, and boost momentum in the transportation sector.

In December 2021, the Ministry of Transport issued the “14th Five-Year Plan for Digital Transportation,” which sets forth the goal of, by 2025, further advancing a digital transportation system characterized by “digital sensing of transport infrastructure, extensive information network coverage, convenient and intelligent transport services, online and collaborative industry governance, vibrant innovation in technology applications, and robust cybersecurity safeguards.” The plan also aims to essentially establish a development framework of “one brain, five networks, and two systems,” achieve significant progress in new‑infrastructure construction for transportation, and substantially elevate the sector’s levels of digitalization, networking, and intelligence, thereby providing strong support for high‑quality development in the transportation industry and the building of a transportation powerhouse.

On January 12, 2022, the State Council officially released the “14th Five-Year Plan for Digital Economy Development,” the first five-year plan on the digital economy issued by the State Council. The document mentions logistics 12 times and supply chains 10 times. In addition, the Plan outlines 11 major projects; under the fourth project, “Project to Enhance Digital Transformation in Key Industries,” smart logistics is listed alongside agriculture, industry, commerce, finance, and other sectors as one of seven priority industries, with a call to “vigorously develop smart logistics.”

As evident from national-level planning, the digital economy is not only a new engine for economic growth but also a pivotal lever for transforming and upgrading traditional industries. Accordingly, a digital transformation of the logistics sector is being propelled to the forefront of the booming digital economy. Meanwhile, with big data, artificial intelligence, Empowered by emerging technologies such as AI and the Internet of Things, digital innovation is accelerating its integration into and penetration of the traditional logistics sector, heralding a groundbreaking digital transformation that has already arrived.

For logistics enterprises, digital transformation will bring about significant changes across multiple dimensions, including organizational planning, business processes, and workforce management. However, in recent years, the journey of Chinese logistics firms toward digitalization has by no means been smooth sailing. Over time, relatively few have achieved substantial scale or successfully completed their transformation—particularly small and medium-sized enterprises, which often encounter numerous challenges during this process, such as insufficient funding, a shortage of skilled talent, and inadequate technological support. “Dare not transform,” “do not know how to transform,” and “cannot transform” have become an insurmountable chasm standing in the way of digital transformation for small, medium, and micro enterprises.

On this phenomenon, Zhu Jun, Director of Digital Business at Yuanse Consulting, offers his own perspective, explaining to the reporter: “The digital transformation of logistics enterprises is both an inevitable trend and an essential path forward, but blind investment and following the crowd are the biggest pitfalls. When embarking on this transformation, companies must conduct a thorough assessment, gain a clear understanding of their own needs and strategic direction, pinpoint the true reasons for their transformation, define their development goals, and steadily pursue those objectives.” He summarized the approach to corporate evaluation as “one central focus and three fundamental dimensions.” Zhu Jun further explained: “The ‘one central focus’ refers to evaluating, from a digital‑centric perspective, the costs involved, the potential returns, and whether the investment is worthwhile. Once this is clarified, the analysis proceeds by delving into three key dimensions: business, technology, and talent.”

He explained: “As the most critical foundational element, the business dimension encompasses all aspects of the enterprise—products, customers, supply-chain services, operations management, and more. Companies must assess what level they can achieve on the business front with the support of digitalization and what position they can secure within their industry. The second dimension is the technology side: enterprises need to evaluate whether they possess sufficient technological capabilities to sustain the rapid growth of the logistics sector. Beyond mainstream technologies such as big data, AI, and blockchain, they should also identify any proprietary innovations that enable them to differentiate themselves and capture market share. The third dimension is talent: while digitalization is closely linked to automation and intelligence, it ultimately hinges on human expertise. Companies must understand their team’s capacity, gauge where their current talent pool stands relative to industry benchmarks, and determine whether they can keep pace with the industry’s evolving demands.”

Shandong Port has completed the world’s first intelligent straddle‑type rail system for container collection and distribution (demonstration section).

It is easy to see that the digital transformation of logistics enterprises is by no means “Ad hoc” decision-making requires comprehensive, multi‑faceted assessments even at the most basic level; entering the arena blindly will only leave a company in an awkward position. “The next, and more critical, step is to define your positioning and identify competitors that align with your strategic goals.” Zhu Jun divides the current stage of digital transformation among logistics enterprises into five tiers: the first is the foundational financial‑recording layer, which merely captures outcomes; the second is the business‑informationization layer, representing a relatively standard level of digital data management; the third is the data‑integration layer, leveraging advanced digital tools to facilitate data consolidation; the fourth is the intelligent‑interconnectivity layer, where smart, interconnected systems are largely in place; and the fifth is the intelligent‑ecosystem layer, marking the achievement of a fully mature digital framework.

He believes that, at present, most of China’s leading logistics companies—such as SF Express and JD Logistics—are in the process of advancing from the fourth to the fifth tier, while the small and medium-sized enterprises that account for a significant share of the industry largely remain stuck around the second tier. In Zhu Jun’s view, the key for these SMEs is not to rush to catch up with the higher‑tier players, but rather to understand their competitors, identify their unique strengths, differentiate themselves, and shine on the competitive track that best suits them.

Liu Yunfei, Dean of the Strategic Research Institute at Zhongchu Nanjing Smart Logistics Technology Co., Ltd., shares a similar view with Zhu Jun. He likewise believes that, in the transformation process, the top priority is to thoroughly understand enterprises’ needs and develop tailored digital solutions that align with their specific business operations. “Large enterprises and SMEs differ markedly in their operating models, business scopes, and levels of technological maturity. Companies must tailor digital transformation strategies that align with their specific growth needs. As the saying goes, ‘every trade has its master’—even during digital transformation, it is essential to maintain clear direction and effective leadership to ensure that the company stays on course.”

Liu Yunfei also stated that the ultimate goal of digital transformation is to help traditional commerce and distribution enterprises evolve into comprehensive supply-chain service platform companies. Throughout this transformation, a range of issues will arise—such as production coordination, operational management, information transparency, and data sharing—and these constitute what the industry refers to as its core needs. He further added: “As the logistics industry has evolved, competition has grown increasingly fierce, and the key differentiators are no longer limited to price. Factors such as service quality, management practices, and operational efficiency have all become critical components of competitive advantage. Consequently, accelerating digital transformation not only helps companies cut costs and boost efficiency but also enhances their overall competitiveness across the board.”

As mentioned above, for logistics enterprises to enter the digitalization race, they must start from their own strengths, define their positioning clearly, and have a thorough understanding of their own capabilities. As the saying goes, “Know yourself and know your enemy, and you will never be defeated.” In the race of digital transformation, staying true to yourself is the key to avoiding a losing start. Blindly following others will only lead you down a path that runs counter to your goals, distancing you further from the original vision of digital transformation.

From the perspective of industry development, the core of digital transformation in the logistics sector lies in thoroughly understanding industry needs, addressing pain points, and resolving real‑world operational challenges. Today, most logistics companies recognize the importance of digital transformation for their own growth and for driving industry progress; however, they remain hesitant due to concerns about the high costs of transformation and the uncertainty surrounding post‑transformation operations and profitability. Consequently, how to achieve a stable digital transformation and, once implemented, sustainably optimize business operations while empowering corporate growth has become the central issue at the heart of logistics firms’ digitalization efforts.

Fu Zhendong has his own perspective on corporate digital transformation investments, stating: “The digital transformation of logistics enterprises is no longer in doubt, but you can’t expect a horse to run without giving it grass. The key is to use the limited ‘grass’ available to make it run faster. To achieve this, companies must return to their roots, identify the fundamental pain points in their business operations, and clearly define the value they aim to create through digitalization—then apply targeted solutions.”

On the specific pathways for advancing the digital transformation of logistics enterprises, Zhang Jianle, General Manager of the Market Development Department at Tianyi Zhilian Technology Co., Ltd., the Smart Logistics Application Capability Center of China Telecom, shared his views. “There is no doubt that, in the process of digital transformation, technology is the primary factor, directly determining the level of digitalization within logistics enterprises. When deploying digital technologies, logistics companies can establish dedicated teams tasked with driving their digitalization initiatives. These teams should also regularly gather cutting-edge academic research on digital technologies and industry‑wide best practices, ensuring they stay at the forefront of sector‑specific applications.” Furthermore, he emphasized that, whether viewed from national strategic planning or broader industry trends, logistics firms should anchor their digital strategies in top‑level design, aligning them with their core competencies—such as product‑design capabilities, social‑service capacity, and channel‑coverage strength—as well as with emerging directions like industrial interconnectivity and ecosystem development. By leveraging their unique strengths and identifying the intrinsic digital essence of their operations, companies can harness digital technologies to fuel growth, ultimately achieving cost reduction and efficiency gains.

In essence, the advancement of digitalization goes beyond merely digitizing production tools and products; it requires enterprises to adopt a digital mindset and approach in their management practices. By leveraging cutting-edge digital technologies such as big data, organizations can gain robust support and guidance for strategic planning, financial management, and overall operations.

Digital transformation is a process of self-reinvention and breakthrough; it is never achieved overnight. It requires decision-makers to adopt a forward‑looking strategic mindset, navigating countless crossroads to identify the transformation path best suited to their organization and steer its growth.

Currently, with the advancement of big data technology, With the advancement of technologies such as 5G, an increasing number of industries are reaping the benefits of technological progress and accelerating their growth. This is especially true for the logistics sector: by integrating cutting-edge digital technologies into its operations and establishing sophisticated information‑sharing systems across the supply chain, companies can significantly enhance the accuracy and timeliness of logistics data transmission, thereby elevating overall logistics performance and driving cost reductions and efficiency gains.

Although digitalization is closely linked to automation and intelligence, it ultimately hinges on human effort; the quality and quantity of talent determine the upper limit of a company’s growth.

On June 15, the automated smart warehousing project of China‑Poland International Logistics (Jiaxing) Co., Ltd., jointly developed by JD Logistics and COSCO Shipping, was officially handed over. This marks the latest collaborative achievement between the two companies—following the establishment of a comprehensive strategic partnership between COSCO Shipping Group and JD Group—in implementing innovative use cases and business models to drive the digital transformation of COSCO Shipping’s logistics operations.

Based on its strategic positioning, JD Logistics has developed a comprehensive software and hardware upgrade plan leveraging digital technologies. On the one hand, JD Logistics has equipped it with… Ten high‑efficiency intelligent stacker cranes, with a rack height of 25 meters and a load capacity of 8 tons, not only meet the demand for over 15,000 storage locations but also deliver an inbound and outbound throughput of up to 360 tons per hour—five times that of a conventional warehouse—while leaving ample room for future scalability. Meanwhile, leveraging JD Logistics’ integrated hardware‑software technological advantages, the facility employs JD Logistics’ WMS warehouse management system and WCS warehouse control system, enabling more efficient and precise inventory management. Additionally, the warehouse’s circular conveyor‑line design allows pallets to be automatically supplied and retrieved without manual intervention, significantly enhancing both practicality and intelligence.

In addition, the project, by leveraging… A 3D SCADA all-in-one real-time monitoring system that can collect equipment status across the entire warehouse in real time, monitor equipment faults and operating conditions, and enable end-to-end warehouse monitoring and management. It delivers a highly automated, intelligent warehouse that combines advanced automation with cutting-edge intelligence, achieving both high efficiency and cost-effectiveness.

Recently, SF Express shared its digital transformation achievements with the industry, highlighting its distinctive hybrid cloud data lake platform. + Intelligent supply-chain algorithmic models empower the logistics and supply-chain industry, contributing to the development of a digital global supply-chain infrastructure. Leveraging a fourth-generation big-data framework, SF Express has built three core technologies within its data lake: decoupled storage and compute, a real-time data warehouse, and an integrated lakehouse architecture. In terms of supply-chain optimization, SF Express uses its hybrid-cloud data lake to break down online–offline silos, delivering advanced smart‑supply-chain capabilities such as demand forecasting, warehouse‑network planning, inventory optimization, route planning, packing optimization, and site‑selection assessment.

In addition, SF Express has adopted a hybrid cloud–based data lake architecture, leveraging a “large middle platform, small front‑end” data application model to achieve data unification and reuse, accelerate the deployment of innovative data‑driven applications, and further strengthen its capabilities as a digital global supply chain backbone. Building on this foundation, SF has standardized data definitions, established clear standards and responsibilities, and developed domain‑specific data models, fostering enterprise‑wide data sharing, co‑creation, and collaborative governance. These efforts empower the Group’s core businesses, effectively reduce supply chain operating costs, enhance competitive advantages, and drive the transformation and upgrade of logistics and supply chain capabilities from automation toward digital intelligence.

As such, digital transformation has become a key area of exploration for major logistics enterprises, even emerging as one of their core strategic priorities. Accordingly, an increasing number of companies are likely to rush into this space. It is foreseeable that a digital‑driven wave of change is already underway; the digitalization of the logistics sector will serve as a vital cornerstone for both individual firms and the industry’s high‑quality development, while also playing a pivotal role in reducing overall social logistics costs and enhancing operational efficiency. Logistics enterprises empowered by digital technologies will, in turn, generate greater value for their customers and for society at large.

In the past, digitalization was merely a means to help businesses thrive; today, it is essential for their very survival. Amid today’s complex global landscape and the ongoing impact of the pandemic, the logistics industry faces numerous uncertainties. Yet one thing is certain: digital transformation is the indispensable path forward for the future development of logistics enterprises. The journey of digital transformation may be long and arduous, but perseverance will surely lead to success.