Leading logistics infrastructure Deconstruction of e-commerce opportunities
The global e-commerce development is booming, making logistics services a hotly contested place. GLP, the leading logistics infrastructure service provider, expressly integrates intelligent automation and big data into logistics management to consolidate e-commerce with Alibaba and JD.com. The giant’s partnership.
The high cost of logistics in the Mainland can increase efficiency
Prologis was first interviewed by the Chinese language media in Hong Kong. Its Co-Chief Executive Officer, Mo Chi Ming, believes that the current opportunity in the logistics industry lies in providing cost-control strategies for e-commerce companies: “From the perspective of consumers, if they can enjoy the existing service levels, they will not walk away. In retrospect, (e-commerce companies) must look for ways to reduce logistics costs, such as “online and offline integration,” and the process cannot be separated from cost reduction or “de-intermediateization.”
ProLogis owns and manages more than 62 million square meters of global logistics infrastructure, and is the largest in the world. Half of it is located in 38 cities in China and involves 270 logistics parks. However, Mo Zhiming pointed out that China’s logistics costs are high, totaling about 16% to 17% of GDP, while mature economies such as the United States and Europe are only 8% to 9%, reflecting that domestic logistics services have improved efficiency and savings. The cost of space, and intelligent automation and big data is one of the keys.
Product homogeneity depends on logistics
He took the domestic product inventory as an example, how the company’s warehousing achieved the minimum inventory to meet the market demand, the process involved the use of big data and distribution networks; intelligent automation can help companies calculate the location and transport deployment, and spell the most Efficient strategy. ProLogis estimates roughly that if the company’s site selection is satisfactory, the overall cost can be saved by an average of 20%: “When the products tend to be homogenous, logistics is the condition that distinguishes the outcome from the winner. Whoever gets to the (destination) faster and more accurately will be the winner.”
Referring to the development of Guangdong, Hong Kong and Macau in the Greater Bay Area, he thought that Hong Kong could provide additional value-added services in the role of commodity re-export hubs, such as cross-border e-commerce. The consumer market in the Greater Bay Area is huge and the smart manufacturing industry also has a good base. I believe Hong Kong can The division of labor in cities in the region has brought about the unique advantages of cross-border e-commerce.