Logistics Chain Efficiency: Orders Out in 15 Mins

Reducing the logistics costs across society is one of the key points of economic work this year.

The China Federation of Logistics and Purchasing recently announced that the China Logistics Industry Prosperity Index for September was 52.4%, an increase of 0.9 percentage points compared to the previous month. The upstream and downstream of the supply chain have become more active, and the physical volume of logistics such as road, rail, air, and e-commerce express delivery has all achieved steady growth.

Recently, the fourth "Flowing China" themed event was held. The First Financial reporter visited logistics companies in the entire industrial chain such as warehousing, loading and unloading, transportation, and logistics equipment manufacturing to explore the secrets behind the logistics industry's cost reduction, quality improvement, and efficiency enhancement.

Warehousing innovation saves costs

As a key link in the logistics chain, warehousing provides strong support for the smooth operation of the logistics system, the efficient operation of the logistics industry chain, and the sustainable development of logistics companies.

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In the Luzhou Chengtong Logistics Park of the Liquor Business Department of China Logistics Co., Ltd., this 7,000 square meter sorting site only requires 10 people to efficiently and accurately complete all order allocation. By adopting a "high-density storage" method, the warehouse is transformed into a shuttle shelf, and a custom high-position electric forklift is used to maximize the use of limited space, saving a lot of costs for the company by improving the utilization rate of warehousing.

At present, with the diversification and personalization of consumer demand, the increasingly fragmented liquor orders have put higher requirements on logistics distribution.

Wu Qinlong, the director of the Digital Innovation Center of the Liquor Business Department of China Logistics Co., Ltd., introduced that goods in the liquor warehouse could not leave Luzhou City for two days in the past, but now, scattered orders can be out of the warehouse in 15 minutes. "We have developed a driver order system, and the driver can directly print the loading document at the order machine after receiving the order on the mobile app, which is simple to operate. It has now achieved self-service order processing across logistics companies and parks, greatly improving the efficiency of goods delivery."

The First Financial reporter learned that as the functional management organization of "China Liquor Warehouse," the Liquor Business Department of China Logistics Co., Ltd. not only has a close long-term cooperation with Luzhou Laojiao but has also established strategic cooperative relationships with many well-known distilleries such as Moutai, Wuliangye, Gujing Gong, Fen Wine, and Xi Wine. Currently, it manages a total of more than 32 million boxes of finished liquor inventory, with a cumulative annual total of finished liquor transportation and distribution exceeding 100 million boxes.

"Why do many liquor companies give up their own logistics business and choose to cooperate with us? This is the purpose and significance of the establishment of 'China Liquor Warehouse': We build an aggregation platform, and through a professional and customized liquor logistics service system, greatly improve the efficiency of warehousing and transportation, significantly reduce the costs of liquor companies, and bring real benefits to customers." said Mu Chen, Deputy General Manager of the Liquor Business Department of China Logistics Co., Ltd.He introduced that helping liquor companies reduce costs, on one hand, refers to the visible apparent costs such as the establishment of RDC warehouses (Regional Distribution Centers) by liquor companies themselves; on the other hand, there are many intangible costs. Taking the Xi Feng Liquor Factory Group as an example, after cooperating with "China Liquor Warehouse", its logistics and transportation costs were reduced by 45% based on the original self-operation, intangible costs (operators, etc.) were reduced by 70%, and the efficiency of product entry and exit warehouses was increased by 60%.

Photo source: China Logistics Group

Intelligent transportation solves industry pain points

As a bridge connecting supply and demand, transportation plays an important role in the modern logistics system.

In front of the data center of Zhongchu Zhiyun, you can randomly click on the "green dot" on the screen to directly see the corresponding vehicle's driver information, cargo information, and vehicle location details.

"One end is connected to 380,000 cargo owners, and the other end is connected to 3.02 million drivers. Zhongchu Zhiyun uses algorithms to accurately push the source of goods to truck drivers, minimizing the empty load rate of drivers, the time to pick up goods and wait for goods, and various costs generated in the middle, and has become the main way for truck drivers to find goods." said Zhou Chuntao, the executive vice president of Zhongchu Zhiyun.

As an infrastructure platform for intelligent logistics and digital supply chain solutions under China Logistics Group, Zhongchu Zhiyun innovatively applies a series of intelligent core algorithms to create three platforms of intelligent transportation transactions, digital logistics, and digital supply chains, achieving closed-loop management and efficient collaboration between logistics and supply chains.

Zhou Chuntao said that Zhongchu Zhiyun uses cutting-edge technologies such as the Internet, big data, artificial intelligence, and blockchain to solve the long-term pain points of the traditional logistics industry, which are small, scattered, chaotic, and poor, focusing on real issues such as poor matching of vehicle and cargo information, many intermediate links in business, incomplete logistics credit systems, non-transparent transportation processes, and high empty driving rates for drivers.

Data shows that the Zhongchu Zhiyun platform has gathered 3.02 million trucks and 23,000 ship transportation capacities, at the same time, the platform serves 380,000 direct customer enterprises such as various production and manufacturing, and trade enterprises nationwide. Since the platform was launched, it has reduced costs for cargo owners by an average of 10% and reduced the time for drivers to find goods by 69%.

Also committed to improving the intelligence of transportation capabilities is China Railway Oil Group Co., Ltd. (hereinafter referred to as "China Railway Oil Group"). It is the core enterprise of China Logistics Group to ensure the safety and stable supply of railway fuel oil.In the railway fuel dispatching hall of China Railway Oil Group, the Internet of Things information platform for railway fuel truck distribution is in operation. Here, a professional fleet of over 360 energy and chemical logistics transportation tank trucks can be monitored and scientifically controlled in real-time.

Hou Zhiguo, Chairman of China Railway Oil Group, introduced that the key to real-time control is the algorithm. Through four technical means: positioning systems, video systems, electronic lead seals, and electronic flow meters, the system monitors the vehicle trajectory in real-time, ensuring that drivers refuel at the correct location and also monitors the specific time of refueling. Currently, this system has provided full-process supply services for railway fuel products to 18 railway bureaus and joint venture railways across the country, and the integrated service model of China Railway Oil Group's railway fuel supply chain has been formed.

Core equipment promotes structural efficiency improvement

The automation and intelligence of logistics equipment, as well as system integration capabilities, play a very obvious role in reducing costs, improving quality, and increasing efficiency in the logistics field.

Zhongchu Hengke, a specialized traffic logistics equipment manufacturing enterprise under China Logistics Group, invented China's first capacitive electronic crane scale in 1984.

Today, Zhongchu Hengke's capacitive electronic crane scale can weigh up to 120 tons, and the hook scale can weigh up to 1000 tons. In June 2023, the 1000-ton bridge crane at Chongqing Guoyuan Heavy Load Wharf officially started its first lifting operation. The 1000-ton hook scale provided by Zhongchu Hengke is the core weighing equipment of the project, setting a historical record for the maximum tonnage of lifting type weighing instruments.

In the exhibition hall of Zhongchu Hengke, it can be seen that on the road sections equipped with various dynamic weighing products of Zhongchu Hengke, after vehicles pass, information such as vehicle load and license plate will be uploaded to the information platform of traffic law enforcement departments, providing a complete chain of evidence for the management of overloading.

In recent years, based on existing resources and technical strength, Zhongchu Hengke has started to focus on the field of bulk logistics loading and unloading robot tracks. Zhou Chunbo, General Manager of Zhongchu Hengke, said that using loading and unloading robots can solve problems such as the lack of physical laborers and high labor intensity, and can also greatly improve the efficiency of loading and unloading operations. Zhongchu Hengke will focus on solving industry pain points and promote structural efficiency improvement in the logistics industry with core equipment.