China's logistics program "package" to the world


Article source: Overseas network

From the center of Moscow to the south, until there is no asphalt road, only in the summer surrounded by green trees and grass, arrived in a logistics warehouse called Radius. Here is the white Stolby, still in the state of Moscow. You don't have to step into the warehouse to see the Chinese elements - the truck that says "China Shipping" is parked outside.

The real impact from China is not seen. In the frenetic atmosphere of the World Cup, fans from all over the world are following the beloved team to many cities in Russia, but the goods from all over the world and even Russia are transported to local consumers at a slow speed.

The logistics solution from China is speeding everything up.

1. From 70 days to 5 days

“The number of parcels this year has increased by 40% compared with last year. Last year, it increased by 40% compared with the previous year. This is the situation after we cooperated with the rookie.” In an interview with this reporter, Russian Post Vice President Sergei said, “We expect In the future, the Russian market will have more rapid growth."

There are three major logistics companies in the Russian local market. Among them, Russia Post, as a state-owned logistics company, accounts for nearly 70% of the Russian express market (including cross-border e-commerce and Russian e-commerce market), with 450,000 employees. It has 42,000 branches in China and is a well-deserved leader.

At the post office in Lenin Street, southwest of Moscow, the shelves are full of parcels. Sergey explained that after working with the rookie, all the registered parcels in these parcels can be tracked. Even if these packages are shipped from China to Russia, their dynamics can be tracked.

Such cooperation is of great significance. In the past, cross-border parcels sent from China to Russia had an average delivery time of 70 days and a loss rate of 20%. This means that in Russia, which is only three months in the summer, if a consumer wants to buy a winter clothes on Taobao, they need to place an order in the summer, otherwise it is too late. Of course, there is no small possibility that this package will never reach the consumer.

Today, with the support of Chinese companies, parcels from China can reach Russian consumers on average in five days.

In fact, this cooperation is not easy to carry out.

In March 2013, AliExpress sold a large promotion in Russia, generating 170,000 parcels. At that time, Russia’s postal processing capacity was only 30,000 parcels. In just one month, Russian customs accumulated 500 tons of parcels. Many users’ delivery time was delayed to half a year, and Russia Post was unprecedentedly protested.

Since then, the Chinese and Russian teams have come together to find solutions in the complex logistics link from China to Russia. In May 2016, the data of China and Russia were completed and the test was started.

Li Xiaoqing, the person in charge of the rookie international technical products who witnessed this process, told this reporter that at that time, the process of digitizing all parcels by Russian customs was the manual input of the staff into the computer. “We have seen some people knocking with a single finger. It takes three minutes for a package. There is no way to scan it like a Chinese logistics company.”

The cooperation will be reborn. In 2016, the number of cross-border parcels in Russia rose from 30 million three years ago to 230 million, 80% of which came from rookies. Moreover, more than half of the domestic parcels in Russia originate from the Chinese platform.

2. Open the "last mile"

The huge and bright "11.11" sign stands on the 11th floor of the landmark building of Moscow, and the Chinese and Russian employees shuttled between them.

Russian Alex Vasilyev worked in a number of Chinese companies such as Jingdong, and later served as the director of the rookie region of Russia. He started from the source and saw how a Chinese parcel arrived in Russia. In the “first kilometer”, all the parcels were sorted and refined from China, and guaranteed to be issued from the Chinese warehouse within 24 hours. In the transportation sector, Optimize China's air route to Russia to ensure that goods can be shipped to Russia within 48 hours. By pre-sorting the parcels, the whole charter is transported to Moscow, then transferred, or directly transferred to other cities via Russian local flights, eliminating the need to clear customs at the local level, saving the clearance time of cross-border parcels.

The most troublesome is the "last mile." Vasilyev recalled that in the past all parcels were sorted from China to Moscow, and now they are sent to five major cities including Moscow, St. Petersburg, Yekaterinburg, Novosibirsk and Kazan. This alone saves a lot. time.

Of course, there are many ways to move towards the “last mile”. At present, at least door-to-door delivery, pick-up at the post office, and self-service in local shopping malls and supermarkets.

The typical way of delivering goods to home is to cooperate with DPD (Depuda Express). As the second largest express network in Europe, Depod acquired SPSR, the third largest logistics company in Russia in 2017, and is now the second largest logistics operator in Russia. It is also one of the few logistics operators in Russia that delivers goods to the door.

Sarkisov, general manager of Deputa Russia, told this reporter that on the eve of 2017, in order to cooperate with this e-commerce shopping festival, they organized 2,000 product delivery points in 500 cities in Russia. Residential areas provide home delivery service.

It is the cooperation with the Tmall platform that has prompted Depuda to continuously improve its capacity. Before the cooperation with the rookie, the average delivery time of Depod in Russia was 3 days. After the cooperation started, the domestic logistics distribution in the five major cities such as Moscow has been completed the next day or even the day.

3. China's experience is indispensable

Despite its remote location, the 21,000-square-meter Radius warehouse is connected to three roads leading to the Moscow metropolitan area. In the vicinity, there are distribution centers for logistics companies such as Russia Post and Depod.

This is the warehouse that the rookie leased in Moscow. The reason was to improve the speed of operation. After cooperating with the local logistics supplier for six months, it found that its carrying capacity was saturated and had to set up a Sino-Russian joint venture logistics company. In addition, the rookie also equipped the warehouse with logistics technical talents from China, and trained Russian employees in logistics technology and management experience to upgrade the carrying capacity of the warehouse.

In the warehouse, the rice cookers, vacuum cleaners, shoes, printers, mobile phones and other commodities are placed on the shelves. Has a strict process. Starting from this warehouse, goods can basically achieve the next day or even the day - this is the speed that Chinese consumers have long been used to.

To achieve this, the experience from China has contributed. The rookie, the general manager of the Moscow warehouse, has been working in the logistics industry for many years. In the past, for him, the outbound means “once a day” or “two days once”, and now it has become “7×24 hours”; Batching into the library is now handled one by one. Behind the more accurate and faster, a complete set of technical solutions are transplanted from China to Russia, such as the "Tianyan" camera system, order number, barcode scanning and so on.

Even the consumption habits of local people are changing. In the past, 80% of online shopping in Russia was cash on delivery, but the prepayment method of mobile payment came, and it was successful in questioning.

In 2017, Ross set foot on the land of China for the first time. He visited Hangzhou, Shenzhen, Shanghai and other places for a dozen days and actually felt the technical level of China's logistics industry. In Huizhou, Guangdong, he was particularly shocked when he saw the sorting of robots in the warehouse. "I was so surprised and shocked. China's technology is very advanced and it has developed very rapidly. Until now, I am still confused. How do Chinese people do this?"

4. Let the world logistics speed up

In fact, there is still a lot of mature experience that has not been copied to Russia, and there is still great potential to change the status quo through technology.

For Vasilyev, the visible potential is that e-commerce is in its infancy in Russia, and the younger generation is embracing this change. He told reporters that although he did not say that he was working in Ali, his 11-year-old daughter had long been used to shopping on AliExpress, and her friends were used to shopping on it. “This is a new generation of people who will eventually grow up and make money, and they like this one-stop shopping.”

In fact, not only Russia, it is a logistics network all over the world.

Russia is a member of the organization and the organization shows that the national intelligent logistics backbone network has been connected to the member states of the SCO, and nearly 300 million packages are being shipped each year.

Looking at the world is even more spectacular.

In the past few years, a smart logistics network covering 224 countries and regions around the world is being realized. The cross-border logistics timeliness from China to major countries has increased from an average of 70 days to less than 10 days. At the beginning of this year, the rookie took the lead in five days of delivery in dozens of key cities in six countries including the United Kingdom, Spain and Malaysia, and the delivery stability exceeded 98%.

On May 31, the rookie announced a plan to establish a world-class logistics hub in the world. The first sites to be considered are Hangzhou, Kuala Lumpur, Dubai, Moscow, Liege and other five cities, which will be Southeast Asia and Western Europe. Russia, and other places bring great speed to logistics.

These five global logistics hubs each have their own advantages and significance. Hangzhou is a cross-border logistics town in China and a test field for China's cross-border e-commerce policy. In March of this year, the rookie opened the exclusive intercontinental route of e-commerce in Hangzhou-Moscow. The first time SMEs had a definitive intercontinental shipping route; Kuala Lumpur It is the first eWTP node in the world. Here, the rookie cooperates with the Malaysian Customs to upgrade the original customs clearance efficiency from one day to three hours. It also takes the robot warehouse from China to Kuala Lumpur. The logistics hub to be built in Belgium can serve Europe. Half of the consumers, the package from here can be delivered to France, the United Kingdom, Germany, Spain and other big markets within 5 hours; Dubai is connected to the three continents of Europe, Asia and Africa, is the world's most important transshipment center.

Soon, Hong Kong, China, joined. On June 6, the rookie and China Airlines and Yuantong Express announced that they will start construction of a world-class logistics hub at the Hong Kong International Airport, the world's busiest cargo airport, and provide strong support for the global 72-hour logistics network. This is one of the many actions of China's logistics industry to invest in the national intelligent logistics backbone network. In addition, on June 11, Zhongtong Express and Turkish Airlines and Pacific Airlines announced that they will establish a joint venture to develop global air transportation services.

Ma Yun, chairman of the board of directors of Alibaba Group, said that the national intelligent logistics backbone network will be composed of two parts: one is to build a 24-hour network in China, and the other network is along the “Belt and Road” and achieve 72 hours in the world. .

Comments

  1. As china is a leading giant in producing goods, it also needed to supply that raw goods to the manufacturing plants and the finished goods back. It needs an efficient logistic network. So eventually, as China's manufacturing business grew, it led to the growth of logistics business. That is why it only takes from 3–5 business days of air freight from China to Australia. This is the fastest shipping method. It’s good for small parcel, personal items or samples.

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