Three major trends in new logistics. The president of Ali Research Institute said that an unprecedented opportunity has come.

26/07/2018

Logistics companies are the first interface for consumers to reach, so there is an unprecedented opportunity – become a department store and become a hub for the core of commercial retail business.

 

From e-commerce to new retail, the transformation of the business format has led to changes in the logistics industry. What important changes have occurred in this process?

Gao Hongbing, vice president of Alibaba and dean of Ali Research Institute believes that the future development of new logistics presents three major trends: The rise of city-wide on-demand logistics, warehousing and collaborative delivery sharing, integration between C-end scene logistics innovation and online/offline supply chain.

On the 2nd China Smart Logistics and Supply Chain Innovation and Development Conference, Gao Hongbing delivered a speech on “New Retail Drives New Logistics”.

Gao Hongbing believes that new retail not only has the problem of retail but also manufacturing. New retail and new manufacturing must be connected by new logistics. Logistics is still connected to production and consumption, which is an important position that smart logistics cannot lose.

Alibaba’s new logistics connects production and consumption.

In the past ten years, the method of logistics cooperation is mainly the coupling of industry, the organization model is franchising and direct operation, and C-end is the form of parcel logistics. In the last ten years, the focus of logistics cooperation has been the reconstruction of supply chain, the organization model is evolving to collaborative sharing, and C-end is the form of scene logistics.

The logistics industry began to shift from standardized commodity logistics to fragmented logistics that is personalized and responds quickly to the market.

Overall, there are three development trends in the future development of new logistics.

First, in the new retail era, express delivery has entered, and on-demand city-wide logistics has started to grow.

E-commerce express parcels used to be an economic dark horse, at the same time, city-wide logistics is rising rapidly. From 2010 to now, express parcel delivery growth rate has decreased from over 50% to 27.5%. While city-wide delivery in first half of 2017 is close to 10 billion, an increase of more than 300%. In the first quarter of 2016, the number of on-demand city-wide orders accounted for only 5% of the express delivery volume, and by the fourth quarter of 2017, it already accounted for 30%.

Second, the market opens the common delivery model from up to bottom.

In the warehouse and distribution system, former logistic enterprises have established themselves as a platform for sharing and creating together. The joint distribution system has become a general trend. It also means that through the personalization of consumer and flexibility of manufacturing end, will bring the socialization of logistics.

In order to socialize, requires a shared economy. Therefore, the internal logistics system of the company must be open to share resources with other social logistics companies, share capacity, share storage space, and share distribution resources.

Third, brick-and-mortar retailing transforms from storefront to supply transformation.

The brick-and-mortar logistics and supply chain logistics of the retail enterprises penetrates, and the brick-and-mortar retail supply chain and the e-commerce supply chain are further integrated and transformed, creating a mixture of online and offline.

Nowadays, goods are not set in warehouses, warehouse inventory cycle is growing shorter and shorter. A very important trend is that goods are always on the way to consumers.

 

Above all, new retail drives new logistics and new logistics creates new retail.

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