Edited by CITIC: "restructuring Business, looking at the whole World, when the Global growth of Digital Giants"

Editor's note: in 2017, the total cost of social logistics in China accounted for 14.6% of GDP, which is much higher than the average level of 8% in the United States, and for every 1% drop in this index, the corresponding market value will exceed 100 billion yuan. Cainiao uses data to drive the reform of the logistics industry and release the profit space of the logistics industry.

Cainiao's mission is to work with logistics partners to achieve 24-hour delivery in China and 72-hour delivery worldwide. The FY2018 Cainiao network assists in delivering 55 million parcels a day. According to data from the State Post Bureau, 2017Q2 China maintains an average of 108 million parcels per day, accounting for more than 50 per cent of Cainiao's express business.

There is a problem of high cost in China's logistics industry. Internationally, the logistics development level of a country is usually measured by the proportion of logistics expenses in GDP. In 2017, the total cost of social logistics in China accounted for 14.6% of GDP, which is much higher than the average level of 8% in the United States. For every 1% drop in this index, the corresponding market value will exceed 100 billion yuan. Cainiao and JD Logistics, Inc. aim to reduce the total cost of social logistics in China to less than 5% of GDP.

Compared with the traditional logistics industry, the advantages of rookie logistics are as follows: 1) data cooperation, information technology empowers logistics transportation. 2) focus on the open network system and change the inefficient operation mode of "going his own way". 3) the electronic bill rewrites the traditional mode of sending and receiving express delivery to protect users' privacy. At present, the rookie coverage rate has exceeded 30%, and the future logistics system with rookie as the core is gradually taking shape.

The wide application of intelligent logistics improves the timeliness of logistics services. Take the "Singles Day" shopping festival as an example, the performance rate of "Singles Day" parcels increased by 25% in 2016 compared with the same period last year, and the signing time of 100 million parcels was nearly tripled compared with 2013. The increased timeliness of logistics services reduces the possibility of backlog of parcels. Cainiao network solves the problem of low efficiency of resource allocation in logistics platform for a long time and integrates all available resources.

However, the regional differences of logistics are still obvious, and smart logistics still needs to be further covered. According to the 2016 logistics limitation index, except for the relatively remote Xinjiang and Tibet, the limitation of Inner Mongolia and other provinces and regions is still only 1 of Jiangsu, Zhejiang and Shanghai. CITIC pointed out that at present, smart logistics has created a variety of mode innovations, such as multimodal transport and Internet + matching of cars and goods, but in terms of functional nature, the popularization of smart logistics in the central and western regions still depends on the consolidation and progress of technology. The functional innovation at the technical level is ultimately conducive to the integration of logistics elements and achieve the purpose of reducing transaction costs. At present, BABA is focusing on the development of RFID radio frequency identification technology, and new technologies such as the Internet of things are also conducive to the realization of vehicle scheduling, supply chain coordination and other functions.

For more wonderful content, please mark: the past period of the rich way research election.