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How to Improve China’s Logistics Performance

2017-10-09

DRC

2017-7-21

Under the new normal of economic development, the logistics industry plays a dual role for the supply-side structural reform and constitutes an important force to achieve an orderly transformation from low-end supply-demand balance to a high-end one. With the upgrading of logistics industry and the rapid growth of e-commerce, the quality and efficiency of China's logistics have been gradually improved in recent years, yet generally speaking, China's logistics industry is large in size but weak in power, and is featured by high cost, low quality and poor efficiency. The performance of logistics industry remains to be improved. We need to find out the major problems so as to improve China's logistics performance in the future. During current period and some time in the future, we need to make efforts to innovate the institutional mechanism, promote the use of advanced technology and management tools, implement supportive policy measures for logistics management and flesh out logistics and supply-chain service system for its future development.

First, it is of great significance to consummate the overall logistics performance. We need to improve the logistics performance, advance the logistics industry’s development and make the service become secure, efficient and convenient through automation, information technology, digitalization, networking and smart technologies in a scientific, precise, green and globalized manner. This is of great and far-reaching significance for promoting national economic efficiency and competence, pushing forward the restructuring and the transformation of economic development, expanding domestic demand, boosting market prosperity, promoting globalization, and ensuring people's livelihood.

Second, there are seven strategies to promote the efficiency and reduce the cost of logistics. 1. The network strategy. In light of the requirements of social and economic development, we need to improve and optimize the logistics infrastructure network, organization network, operation network and information network, and build a modern logistics service system which is able to effectively coordinate logistics service both at home and abroad, between coastal and the mainland areas, between urban and rural areas, between provinces, cities and counties, and between social and self-employed entities at various levels and with different social functions. 2. The scientific and precise strategy. We need to meet the market demand featured by growing stratification, decentralization and refinement, closely follow consumers’ demand as well as the demand for industry and consumption upgrading, and render logistics service in a precise manner through targeted measures and improved management. 3. The intelligent strategy. We need to use information technology, digitalization and intelligent technology to achieve the connection of logistics resources and real-time, controllable, and intelligent logistics service based on security, efficiency, sensitivity and humanity. 4. The inter-connected strategy. We need to focus on the inherent requirements of logistics industry service and production, circulation and consumption, strengthening the integration of logistics resources and supply chain, enhancing management capabilities for logistics services and supply chain, promoting the cooperation and interactive development of logistics industry, between various industries and regional economy, and giving full play to the logistics industry’s functions as the bridge, linkage, engine and coordinator of the national economy. 5. The globalization strategy. We need to grasp the new features of globalization and international changes, enhance international cooperation, forge a global logistics and supply chain system, take the initiative to participate in the international division of labor to enforce China’s status in the global value chain, strive for the connection of China’s logistic industry with global network and global service and seek solutions for addressing global issues. 6. The sustainable strategy. We need to focus on ecological civilization, environmental-friendly management, resource conservation and security to achieve the conservation of land, energy, resources, reduce pollution and emissions, and minimize the negative impact exerted by logistics activities. 7. The innovation strategy. We need to make innovations relating to people’s mindset, social system, service and business model, organization pattern as well as management procedures and technology to push forward the development of logistics industry and create more value to meet the needs of economic and social development.

Third, there are three major tasks for the enhancement of logistics performance: 1. We need to build a strong, intelligent, and green national logistics system; 2. We need to forge China's global logistics system to be connected with the world logistics system; 3. We need to promote the modernization of logistics. In short, the modernization degree of China's logistics is still at a low level, the national logistics system remains to be fleshed out, the global logistics system has just made a start, and it’s time-consuming and difficult to make a comprehensive improvement of logistics performance. China's logistics industry development still has a long way to go.