China's logistics cost is too high and solutions

It is reported that China has become the largest trading power in the two examples of infrastructure in Shanghai suburbs: Yangshan, the world's busiest container port, as well as the Pudong airport, cargo throughput ranked third in the world. China ease of highway mileage over one hundred thousand kilometers (about 62,000 miles), the railway mileage also comparable period. In view of all these new infrastructure, you might also think that China has a world-class logistics industry. But that is not the case.

British "Economist" Web site posting said,LogisticsCovering the transport, storage and cargo management. Logistics in Chinese literally means "the movement of goods." But the flow of costs in China tedious, expensive items and processes. Most investments in infrastructure are used to promote exports. Now, with the focus shifted to domestic consumption, the Chinese government found that the efficiency of the domestic logistics industry is extremely low.

The article said,LogisticsIndustry spending roughly equivalent to 18 percent of gross domestic product (GDP) is higher than in other developing countries (India and South Africa logistics spending about 13-14% of their respective GDP), and is developed twice. Logistics industry complained that the cost of goods from Shanghai to Beijing needed to be more expensive than the goods sent to the United States.

Most stores are very old, and there is no mechanization. During transport goods across the country, to be transported between transport up to ten times. No goods connected to the road from the railway between freight hub. Old and overloaded trucks to and from the new highway, more than a third of these trucks in transit can not be pulled to return goods.

The good news is the improvement initiatives underway in the industry. The central government inefficiency and cost issues concern the logistics industry. At a meeting of the State Council held last month, the leaders approved a new reform program, although details have not yet been finalized. This goal is to reduce costs and develop more large-scale enterprises.

But reform is a brighter hope comes from the private sector. A lot of money, including private equity funds, including currently being used to build more large-scale logistics enterprises. The formation of information-sharing platform initiatives also underway, this way, the car transport company can be coordinated with customers to improve the situation lorry-load of return.

E-commerce enterprises, especially fears that they fear the bottleneck of the logistics industry will hinder their recent sharp growth. Customer requirements at a low price and enjoy high-quality customer service. Consulting firm AccentureFoxZhu (Fox & nbsp; Chu) said that in China, online shopping an average of less than 100 yuan (about $ 16), but he said the only freight may reach 8-15 yuan.

The article said that, out of these problems concerns, online retailers are taking action themselves. Jingdong being developed by warehouses, trucks and delivery personnel of its own sales network. Alibaba is available with a range of courier companies together, rather than have their own delivery trucks.