Achieving the “leapfrog effect” through the modern logistics industry.
Release date:
2020-12-12
Author:
Jinhua Logistics
The logistics industry is at the heart of modern distribution. Under the new normal, China’s economy is transitioning from an export‑driven model to one led by domestic demand, yet logistics remains a bottleneck for this demand‑oriented economy. Currently, the ratio of total social logistics costs to GDP is twice that of European countries. Several favorable factors are poised to drive the development of the logistics sector: the relocation of coastal factories inland, rapid consumption growth, rising import demand, and the ongoing urbanization and upgrading of infrastructure—each presenting significant opportunities for expanding large‑scale logistics networks. In particular, third‑party logistics can effectively reduce operating costs, cut capital expenditures, and boost profit margins. Moreover, our province enjoys a uniquely advantageous geographic location and robust transportation infrastructure. With the accelerated construction of a “rice‑character” high‑speed rail network, the benefits extend beyond infrastructure upgrades and passenger transport; “high‑speed rail express” services cost about 25% less than air freight. Should high‑speed rail cargo operations eventually take off, they will profoundly reshape the logistics landscape, placing Yantai in a commanding position.
For the logistics industry to become “modern,” it must also embrace “Internet Plus.” Currently, order‑fulfillment costs account for more than 50% of e‑commerce operating expenses. The innovative nature and platform‑based mindset of “Internet Plus” can enable modern logistics to achieve a “leapfrog effect,” integrating the sector, reducing logistics costs, and freeing e‑commerce from the constraints of traditional express delivery and logistics services.
Modern logistics connects commerce on one end and people’s livelihoods on the other. According to Lou Gang, Chief Strategist at Morgan Stanley, “China’s logistics sector is still in its infancy, making it a sunrise industry with enormous growth potential.” By building a comprehensive transportation network, developing robust logistics systems, fostering a thriving industrial ecosystem, and driving broad-based economic development, Shandong is well positioned to make an even greater contribution to the nation as a whole.
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