Analysis of the Status Quo of China's Supply Chain Logistics Industry

1. The scale of the downstream industry provides a huge space for development

China's automobile, retail, and electronic components markets are all in the forefront of the world, providing a huge space for development in supply chain logistics.

2. Logistics efficiency is polarized and there are structural problems

It cannot be said in general terms that China's logistics efficiency is low, and China's logistics efficiency as a whole is characterized by polarization. As a pole of China's logistics, express delivery can be higher per capita (80 per person per day), higher than that in Europe and the United States (50-70 per person per day). With the help of the rookie and the efforts of the entire private express delivery company, the standardization and informationization of the entire express delivery industry are currently very high.

However, in addition to express delivery and express transportation, the road freight subdivision industry – large pieces of LTL, the whole vehicle is still at a lower level of digitization, more idle capacity, and the overall performance of low-efficiency and low-cost business.

3. Why is DHL's supply chain in China selling?

Deeply plowing production-type supply chain logistics for many years, profitability has not improved: DHL supply chain entered the Chinese market in 1985, lasted nearly 35 years, as of 2017 revenue of only 3.512 billion yuan, net profit of 140 million yuan, net profit rate maintained at 2% - 3% level.

Software development requires perfect hardware support; the development of supply chain logistics also requires supporting infrastructure. Express delivery and fast operation are the infrastructure for C-side consumer logistics. The overall standardization and informatization degree are higher, so the supply chain logistics service is easier to carry out; the bottom-level hardware of the B-side production logistics - large ticket lending, vehicle standardization, informationization degree Lower, although there is supply chain logistics demand, but the service is more difficult to implement.

Supply chain logistics for small businesses, hundreds of thousands of expenses, but this expenditure has a certain time lag for efficiency. ToB's SMEs (production links) are more difficult to withstand longer supply chain retrofit cycles and checkout cycles than ToC's SMEs (consumer segments).

4. China's supply chain logistics development has diverged, consumer links first broke out

On the demand side, supply chain logistics has the preconditions for great development. Similar to the 1980s, the cost pressure of China's economic growth slowed down, China's labor cost advantage gradually weakened, and cost reduction and efficiency became the development theme of various industries.

On the supply side, the guarantee capacity of China's production and consumption logistics base capacity is obviously different. In the field of consumer logistics, there are a large number of operating specifications, capital-rich, high-information express delivery, express listed companies. In the field of production and logistics, the company is relatively fragmented, with individual fleets and dedicated companies, and the overall efficiency is low, and information is poor.

The development of China's supply chain logistics has become more and more differentiated. The supply chain logistics chain will have a high probability of entering the high-speed development period, while the production chain supply chain logistics still needs to wait for the optimization and upgrading of the basic capacity.

Reprinted from the network