reducing logistics costs does not mean reducing service levels

China’s logistics cost is much lower than in developed countries when compared under the same conditions of logistics operations. Meanwhile, logistics costs are not the lower the better, low price competition leading to a decline in service levels is not the direction of development of the logistics industry.

With the help of big data, cloud computing, Internet of Things and other means, it is possible to optimize the resources and network of the entire logistics chain to achieve optimal operation and reduce logistics costs.

To give a simple example: the same brand of clothing in a city, there are different shops, different channels of purchase, there may be a shop sold out of goods, layers of orders reported to replenish; at the same time another shop has a backlog of goods, but also need to report layers of returns; resulting in a great waste and high costs.

According to the practice of logistics enterprises, with the help of information link and instant distribution services in the same city, it can realize direct distribution from backlog shops to shops out of stock, and realizes the circulation and logistics network of the supply chain down by the chain, and realize networking at the end.

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