Improving logistics quality, reducing costs, and boosting efficiency are the natural imperatives of modern logistics development.
Release date:
2022-06-10
Author:
Jinhua Logistics
Recently, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, and the People’s Bank of China jointly issued the “Notice on Doing a Good Job in Key Cost-Reduction Tasks for 2022” (hereinafter referred to as the “Notice”).
Four departments have delineated 2022 While prioritizing cost reduction, this initiative also builds on the policies and lessons learned from recent supply-side structural reforms aimed at lowering logistics costs and enhancing efficiency, thereby charting a course and establishing a core framework for systematically reducing logistics expenses, improving the quality of logistics services, and fostering a new logistics‑based economy.
Recently, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, and the People’s Bank of China jointly issued the “Notice on Doing a Good Job in…” 2 0 2 2 Notice on Key Tasks for Reducing Costs Throughout the Year (hereinafter referred to as the “Notice”). Building on a review of recent years’ supply-side structural reform policies and experiences in reducing logistics costs and enhancing efficiency, the Notice further calls for advancing the quality improvement, efficiency enhancement, and cost reduction of logistics at a higher level, across a broader scope, and at a deeper level. It thus sets the direction and establishes the core framework for systematically lowering logistics costs, elevating the quality of logistics services, and fostering a new logistics‑based economy.
Further advance the upgrading of logistics, enhancing efficiency while reducing costs. This will be achieved by establishing a modern logistics system for a major country, leveraging China’s already developed robust, integrated, and multi-dimensional transportation network, as well as key nodal facilities such as national logistics hubs, national backbone cold-chain logistics bases, and comprehensive freight hubs (logistics parks). Supported by a well‑developed trunk‑and‑branch line network and an intermodal collection‑and‑distribution system seamlessly connected to these logistics nodes, efforts will be accelerated to establish and improve… “Passage” + Hub + A modern logistics operating system based on the “Internet.”
At the same time, further advancing the quality, efficiency, and cost‑reduction of logistics aligns with the developmental patterns and trends of modern logistics networks as they scale up. It leverages the pivotal role of logistics hubs in efficiently aggregating and concentrating logistics resources and fostering economies of scale, thereby enhancing the overall efficiency of national logistics operations, intensifying efforts to reduce operating costs, and, through major international logistics corridors, comprehensively establishing an efficient logistics system that supports the new development paradigm of a dual circulation—domestic and international. By harnessing network scale and operational efficiency, we can continuously lower overall logistics costs, elevate the quality of network‑based logistics services, fundamentally transform the traditional, resource‑intensive growth model reliant solely on input‑driven logistics factors, and achieve high‑quality logistics development.
Promote, on a broader scale, the upgrading of logistics to enhance quality, boost efficiency, and reduce costs. It also seeks to comprehensively foster the integrated development of logistics with industries such as manufacturing, commerce, and agriculture. Accelerate the upgrading of logistics infrastructure and equipment, as well as innovation in business models, to effectively expand the scope of logistics industry development and services, deepen the integration of logistics into the industries it serves, and build a more efficient logistics service system with lower public‑service costs.
At the same time, relevant industries are encouraged to continuously enhance their internal logistics management and service‑outsourcing models, proactively aligning logistics supply with demand, improving the match between supply and demand, and leveraging economies of scale to foster a systemic environment that reduces costs and boosts efficiency.
Furthermore, by iteratively upgrading logistics facilities and equipment across both the logistics and industrial sectors, we can simultaneously enhance the quality and efficiency of logistics operations at both the service and industrial ends. This will foster a new industrial development ecosystem in which logistics and related industries are deeply integrated, enabling logistics to transcend its traditional boundaries. In doing so, we not only uphold logistics’ role as a third source of profit but also, through close collaboration between logistics and industry, build more internationally competitive industrial and supply chains, thereby accelerating China’s transition from a manufacturing giant to a manufacturing powerhouse.
Deepen efforts to enhance the quality, efficiency, and cost-effectiveness of logistics. This entails advancing high‑quality development across two key dimensions—the logistics infrastructure system and the logistics services system—while driving technological, business‑model, and operational innovations to reshape China’s logistics sector. Such measures will accelerate the modernization of China’s logistics industry, providing cutting‑edge modern logistics services and fostering innovative economic development models that align with the country’s broader path toward modernization.
First, we will comprehensively elevate the level of China’s industrial and supply chain development, undertake profound transformations in how industries operate, continuously reduce overall operating costs and enhance operational efficiency, strengthen the international competitiveness of Chinese industries, and accelerate their transition toward the mid‑to‑high end of the global value chain.
Second, systematically enhance the operational efficiency and quality of China’s logistics sector, strengthen its resilience in addressing risks and challenges arising from the development of industrial and supply chains, accelerate the transformation of the industry’s overall landscape, and achieve a profound restructuring of the logistics sector, thereby positioning it as a leading force that underpins the high-quality development of other industries.
Third, we will fully leverage the functions of logistics hubs in aggregating and coordinating key logistics‑industry factors, accelerate the development of hub‑based economies, and, against the backdrop of China’s robust domestic market and its vast manufacturing and trade‑distribution sectors, build a powerful logistics‑hub‑driven economic system that serves both domestic and international markets. In doing so, we will not only reduce logistics costs and boost efficiency but also foster new growth drivers for industrial development, making the logistics‑hub economy a fresh engine of economic growth.
(The author is affiliated with the Comprehensive Transportation Research Institute of the National Development and Reform Commission.) Director, Researcher)
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