Positive Changes in Logistics Operations

Advertisements

The logistics and procurement industry in China is poised for a significant transformation as highlighted by the latest data published by the China Logistics and Purchasing FederationThe nation’s total social logistics is expected to reach an impressive 360.6 trillion yuan by 2024, experiencing a remarkable 5.8% increase over the previous yearThis upward trajectory in logistics growth reflects a continuous improvement in the operational environment and a solidification of market scale advantagesAs we look towards the future of logistics in China, various factors point to a promising evolution characterized by enhanced efficiency and elevated service standards.

Hu Huan, the Deputy Chief Economist at the China Logistics Information Center, emphasized the need to lower logistics costs across societyThis directive aims to position modern logistics development on a more sustainable pathThe collaborative efforts from multiple governmental sectors, aligning macro policies with logistics-specific regulations, have birthed a series of beneficial initiativesTax cuts, cost reductions, and support measures for enterprises have assembled a robust framework that revitalizes logistics demand and enhances the business environment within this vitally important sector.

The rapid growth of high-end industries such as intelligent manufacturing and high-technology production, particularly in sectors like integrated circuits and optoelectronics, has led to a surge in logistics volumes exceeding 15%. Products in the field of robotics, including service and industrial robots, have seen logistics volumes increase dramatically by 15.6% and 14.2%, respectivelyThis uptick signals a significant milestone in achieving high-quality logistics development for industrial productsIn tandem, advancements in digital infrastructure have led to the exploration of new consumption scenarios, thereby unleashing the potential of consumer logisticsThe e-commerce sector saw an online retail sales increase of 6.5%, propelling express delivery volumes beyond 1.7 billion packages – a historical high.

As we navigate through 2024, the focus will sharpen on crucial segments of railway and highway freight, alongside logistics information data

Advertisements

The aim is to expedite the transition of railway freight towards a more integrated railway logistics approach, promote standardized scaling in highway freight, and refine urban freight networksFurthermore, a call for the openness and interconnection of logistics information surfaces, setting the stage for a unified national logistics marketplace that promises to inject strong vigor into decreasing nationwide logistics costs.

Significant findings from the data show the ratio of logistics costs to GDP in 2024 will be around 14.1%, a minor but notable drop of 0.3 percentage points compared to the previous yearThroughout the first, second, and third quarters, this ratio decreased steadily, illustrating a consistent decline in logistics costs across various sectorsTransportation costs relative to GDP lowered to 7.6%, management expenses decreased to 1.7%, while warehousing costs remained stable at 4.8%.

Hu Huan's analytical perspective suggests that strengthened coordination between logistics supply and demand has been crucial in ensuring stable economic growthComparing logistics data with economic indicators reveals that the growth rate of logistics continues to outpace general economic growth, marking a healthy logistics landscapeYear-round logistics data yielded a healthy average prosperity index of 51.7%, indicating a stable top before a noticeable ascent, mirroring freight volume trends.

In today’s highly developed market economy, modern logistics function as an invisible yet vital thread, seamlessly connecting the realms of production and consumptionThis essential conduit plays an irreplaceable role in the functioning of our socio-economic framework.

Analyzing the alignment between market supply and demand, modern logistics excels due to its efficient transportation, storage, and distribution systems

Advertisements

It enables the quick and precise movement of various products from production sites directly to consumers, ensuring an optimal spatial allocation of goodsFrom massive industrial machinery to everyday items, diverse consumer needs in different regions rely heavily on an efficient logistics systemTake, for example, the e-commerce industry: thanks to robust modern logistics, consumers find themselves receiving their ordered items rapidly — a development that propels online shopping, thus enhancing market supply-demand integration.

When it comes to the circulation of physical goods, modern logistics serves as a foundational support systemBy optimizing supply chain management and integrating logistics resources, it contributes to lower costs and improved efficiency in the movement of goodsRanging from raw material transportation to manufacturing processes and final distribution, logistics underpins every stepAn efficient logistics framework minimizes inventory backlogs and accelerates capital turnover, placing enterprises in a more competitive stance and fostering growth within the broader physical economy.

In the realm of employment, modern logistics demonstrates a substantial capacity for job creationThis sector encompasses numerous roles, from front-line delivery personnel and truck drivers to managerial and technical positions within logistics enterprisesThe National Economic Census reveals that there are presently over 900,000 legal entities within the logistics sector in China, constituting more than 8.1 million individual businessesBehind these staggering numbers exist countless job opportunitiesThe logistics workforce has surpassed 55 million, with employment in emerging areas like instant delivery surging by over 50%, significantly outpacing urban job growth averages

Advertisements

Instant delivery has quickly risen as a burgeoning sector within modern logistics, fueled by the rapid expansion of online economies and food delivery servicesBeyond providing consumers with more convenient options, it generates flexible job opportunities for countless workers such as delivery riders, who simultaneously meet market demands and enhance their own livelihoods.

Modern logistics proves essential in ensuring the supply of daily essentials and maintaining normalcy in life and productionDuring crises such as natural disasters or public health emergencies, the reliable functioning of logistics systems becomes even more crucialFor instance, during the COVID-19 pandemic, logistics companies were pivotal in transporting medical supplies and essential goods, ensuring timely delivery and contributing significantly to pandemic mitigation effortsEven in ordinary times, logistics systems uphold urban functionality, facilitating the delivery of fresh produce to local residents and maintaining supply chains for factories, ensuring uninterrupted production processes.

As a critical backbone of economic and social development, modern logistics plays an irreplaceable role in synchronizing market supply with demand, promoting the circulation of physical goods, creating job opportunities, and ensuring essential suppliesThe evolving landscape of technology and market demands will continue to keep modern logistics innovating and advancing, paving the way for even greater contributions to societal prosperity.

Last year, China experienced remarkable enhancements in logistics operation efficiency, marked by a continuous optimization of logistics structuresA significant recovery in efficient transport modes improved their share in the overall systemNotably, the civil aviation cargo volume saw a considerable year-on-year increase of 22.1%.

The development of collaborative transport modes also bore positive trends, with tighter interlinkages becoming increasingly apparent

Advertisements

Advertisements

Leave a Comment