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Expert: Reform and scale will drive new trends in logistics

Updated: 2013-10-29 09:24

(China Daily)

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Chinese logistics companies should use advanced technologies and better management to embrace new challenges in the industry, said Ma Zengrong, director-general of the China Logistics Technology Association.

Despite the lasting economic doldrums in Europe and the United States, China's economy remained on a healthy track this year, providing a sound environment for the logistics industry, Ma said.

As an emerging pillar industry in China, the logistics industry now accounts for some 7 percent of the nation's GDP. It has been growing at an average annual rate of 20 percent over the past decade.

According to statistics from the China Logistics Information Center, the industry registered year-on-year growth of 9.1 percent in the first eight months of this year, 0.6 percentage points lower than the same period last year.

Though it showed a slight decline, compared to 2012 when growth dropped 3.8 percent in the period, the industry is making up ground this year, he said.

Expert: Reform and scale will drive new trends in logistics

"Since 2012, the European debt crisis worsened and the world economy grew slowly. China's economy is affected by these big trends," said Lu Daming, secretary-general of the Logistics Engineering Institution at the Chinese Mechanical Engineering Society.

"But companies are pursuing higher efficiency, and lower costs in logistics, labor, land and energy," Lu said.

Lu added that companies also have higher demands for more automated logistics equipment.

"So I anticipate that this year the industry will maintain relatively good momentum," Lu said. "There is still large potential."

Ma said several factors are influencing the country's logistics industry - overall economic development, market demand, technology, rising costs and pressure for environmental protection.

As a result, China's logistics industry will take on several new trends.

"The first trend is that the overall logistics industry will maintain good momentum," Ma said.

As economic structural adjustments focus on industrial upgrades, Ma said the second trend will be that the industry will gradually concentrate in the hands of a few leading enterprises that have competitive facilities, networks and management systems.

With the rise of the information industry, he said electronic business will have a great impact on the logistics industry.

"Information technology will make the whole logistics chain more intelligent, and the Internet of Things will have big impact on the logistics industry," said Ma.

As the costs of labor, energy and land soar, companies must optimize their own resources to integrate the whole value chain and look for more business opportunities, Ma said.

"Visitors can expect a broad range of presentations of companies and products," he said.

 

Expert: Reform and scale will drive new trends in logistics

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