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Urban Joint Distribution Implementation Plan Attracts Logistics Companies

    The Implementation Plan for Urban Joint Distribution in Five Functional Areas (hereinafter referred to as the Plan) issued by Chongqing on February 4 indicates that the informatization of logistics in the city is to be accelerated. The Plan sets out that the urban joint distribution rate in Chongqing is to reach over 30% by 2020, while that of the urban core area and the urban functional expansion area will amount to around 50% respectively. The three-level distribution system of commercial logistics will be basically completed, and common pickup and delivery points of urban last-mile delivery will cover the city in the main. At present, the informatization of joint distribution in Chongqing is attracting and receiving support from Chongqing Logistics Association and external capital.
 
    Plan: A Layout with 38 Common Distribution Centers
    According to the Plan, to facilitate resource sharing, encourage win-win cooperation and increase mutual benefits, associated government departments and enterprises will quicken the construction of common warehouse logistics facilities, integrate logistics distribution resources, and promote sharing of logistics technologies, warehouse facilities, freight vehicles and data information in industry.
    How to build an urban joint distribution system? Around the “three bases & three ports” national core logistics hub and node logistics park, a batch of logistics distribution centers of industries like e-commerce, daily necessities, medicine, agricultural products, cold chain, auto and motorcycle parts, as well as home building materials are to be set up in the urban and functional core areas. Centering on urban joint distribution, Chongqing will focus on the planning and construction of eight common distribution centers including Longxing, Konggang, Caijia, Xiema, Tuzhu, Nanpeng, Yinlong and Baishiyi, deploy common distribution centers for e-commerce logistics and agricultural products, and establish more than 950 last-mile common pickup and delivery points.
    In the urban development new area, 13 district-level comprehensive common distribution centers and 1,150 last-mile common pickup and delivery points are to be built to form a distribution facility network featuring interconnection and external connection, smooth linkage and urban-rural combination.
    In the northeast ecological conservation and development area, a common distribution network featuring urban-rural integration is to be built by establishing 11 comprehensive common distribution centers and 600 last-mile common pickup and delivery points in districts and counties.
    In the southeast ecological protection and development area, a more diversified and convenient urban-rural logistics distribution system is to be established by setting up 6 comprehensive common distribution centers and 200 last-mile common pickup and delivery points in districts and counties.
 
    Opportunity: Enterprises Getting Ahead of the Curve
    According to a person in charge from Chongqing Commerce Commission, Chongqing will support large scale commercial logistics enterprises to innovate joint distribution mode, integrate logistics distribution resources of upstream and downstream supply chain, establish long-term and stable joint distribution alliance, develop urban joint distribution, and boost joint logistics distribution of daily necessities, e-commerce, agricultural products, cold chain and medicine.
    By 2020, the number of leading logistics enterprises and that of key distribution companies in Chongqing will respectively reach about 10 and 40. The urban joint distribution rate in the city will be up to 30%; the coverage of joint distribution network in main urban areas will reach about 50% and that of distant districts and counties will be around 40%; the collective distribution rate in rural areas will be above 30%.
    What kind of companies are in a favorable position? According to the Plan, about five enterprises like large scale supermarkets with many chain stores, large business scope and complete warehouse distribution system will be encouraged to transform into the third party logistics enterprises to provide collective distribution service for their chain stores and relevant stores in society, making the joint distribution rate be up to over 90%.
    In the meantime, Chongqing will promote strong state-owned and private third party logistics enterprises to integrate small and micro-sized urban distribution enterprises and private businesses to make these enterprises grow bigger and stronger. About 15 key enterprises engaged in joint distribution for daily necessities, e-commerce, cold chain, medicine, agricultural products and specialized markets will be cultivated in Chongqing’s main urban areas. Each distant district and county will be equipped with a major urban-rural common distribution enterprise.
    In terms of the logistics terminals of e-commerce, three to five terminal distribution enterprises with over 500 terminal common pickup and delivery physical stores or more than 1,000 intelligent common self-service counters will be developed in the city. Each distant district and county will introduce and develop an enterprise responsible for the construction and distribution service of terminal common pickup and delivery points.
 
    Impact: Logistics Cost Is Expected to Drop by 10%
    After the issuance of the Plan, many companies have noticed the business opportunity and successively joined in the development of the informatization of logistics. Recently, the famous domestic logistics informatization platform “Shashidi” has settled in Chongqing. The platform explores opportunities through “Internet + logistics” mode and analysis of big data of freight logistics. By far, it has covered over 100 cities in China and gradually formed a service platform covering the whole country and featuring online-offline combination.
    A person in charge from “Shashidi” introduced that the platform creates a freight information transaction platform for over 30 million truck drivers in China, as well as cargo owners and logistics enterprises, which realizes sharing of online information, standardized disposal of freight by traditional logistics enterprises, information symmetry, cost reduction, economic performance improvement and risk mitigation.
    In addition, with joint efforts from China International Auto City, Chongqing Logistics Association takes the lead to build an intra-city urban joint distribution platform, which allows cargo owners and truck drivers to use an app to publish information through the “O2O goods-vehicle matching system” of the public logistics information distribution platform and by drawing on the charter vehicle mode or car-pooling mode. The platform makes intra-city logistics transparent for it can realize in transit tracking and delivery confirmation.
    According to a person from Chongqing Logistics Association, with the help of the logistics informatization platform, cargo owners no longer need to sort out information of freight source at night, while truck drivers can match freight source for the return trip while delivering goods. Thus time taken by traveling to logistics parks and parking fees can be saved. Meanwhile, drivers can directly drive to the next warehouse and carry goods. Presently, the capital scale of the logistics market in China reaches trillion-yuan level every year. The total logistics cost accounts for 17% of China’s GDP, while that of developed countries is less than 10%. With the realization of joint distribution, it is possible for the current logistics cost to decrease by 10% to 20%.
 

   

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