Expert: Lead sustained development of logistics supply chain through innovation

As China accelerates the development of international transport corridors with multimodal transport represented by the CR (China Railway) Express, advanced technologies should be deeply integrated with the logistics supply chain to drive the industry toward significant progress, a leading Chinese expert has noted.

Tan Guangming, chairman of Shanghai EPU global and a distinguished expert at Shanghai University, said such advanced technologies as the internet of things, big data, cloud computing, and artificial intelligence are conducive in bolstering logistics supply chain to gain more development opportunities.

In the context of globalization, trade, and the restructuring of industrial chains, the logistics supply chain industry — as a vital pillar of the national economy — is undergoing an irreversible trend of digitalization and intelligent transformation to address evolving markets and increasingly complex supply chain challenges, he said.

The country should promote the in-depth application of digital intelligence in the logistics supply chain, continuously enhance the resource integration and business model innovation capabilities of railways, highways, waterways, and other modes in multimodal transport, strengthening the emergency response capabilities under sudden circumstances, Tan said.

"Cross-border logistics supply chains face more risks and uncertainties, with factors such as geopolitics and trade policies potentially bringing uncertainties to logistics operations," he said, stressing that digital intelligence tools can enable intelligent identification and personalized processing of all nodes in the logistics chain, and the vast amounts of data generated can provide strong support for enterprises to respond to market fluctuations and tap potential business opportunities.

"The opening of the CR Express once filled me with excitement; it is full of challenges and opportunities," he recalled.

As early as November 2022, he has voiced at a forum — a concurrent event of China International Import Expo — in Shanghai to elevate the logistics supply chain industry, with a keynote speech entitled "Operating Model and Development Solutions of One-Stop Railway Transportation International Services" focusing on intelligent transport services.

Seizing the historical opportunity of the construction of international corridors for the CR Express and the Central Asia Block Train, Tan has committed himself to boosting multimodal transport one-stop services, integrating advanced logistics and supply chain management methodologies, and creatively integrating digital and intelligent technologies into the supply chain process.

Back in 2008, Tan founded EPU, which now encompasses two brands (EPU Logistics and EPU Supply Chain), with a logistics service network covering container train stations in more than 40 countries and regions worldwide, in Shanghai.

Having successfully developed and operated multiple CR Expresses (Central Asia Block Trains) with cumulative shipments exceeding 100,000 TEUs (Twenty-foot Equivalent Units), EPU gained a revenue reaching 190 million yuan ($26.7 million) in 2023.

"Based on a 'full life cycle' logistics management concept, we have built a logistics network for the CR Express, including overseas warehouse networks, international transfer hubs, and local transportation and distribution networks," he said, noting that their professional operation service centers have been established in 12 Asian hub nodes and hub cities in Europe such as Hamburg, Moscow and Paris.

The country should actively integrate logistics into enterprise supply chain construction, achieving breakthroughs in various cargo transport technologies such as electronic products, machinery products, automotive parts, chemical industrial products, and medical and hygienic products, he affirmed.

"The CR Express is a container multimodal transport mode primarily based on railways, and a single entity or enterprise can hardly fully manage the resources and operations of multimodal transport," Tan said, claiming that closer industry communication and collaboration mechanisms should be established in a scientific manner.

"This helps to enhance internal and external information sharing within the industry through blockchain, digitization, and other advanced technologies to drive data-driven, interconnected multimodal transport operations and management," he said.

For example, Tan has formulated a global layout and digital intelligence collaboration development strategy for EPU's two brands, with EPU Logistics specializing in container truck transportation while EPU Supply Chain focusing on international air, sea and land transport, and international trade.

As Tan continuously summarized his practical experience and dedicated himself to theoretical research in the field of digital intelligence, he has been invited as an expert reviewer to participate in the review of multiple major digital intelligence projects in Shanghai.

"We should contribute to the quantitative and qualitative improvement of the CR Express and provide a robust guarantee for the stable and smooth flow of the country's international supply chain," he said.

Please contact the writer at hanjingyan@chinadaily.com.cn