How to tackle inefficiencies in China’s US$35 trillion logistics industry - big data, AI, robotics
Leading logistics solutions provider GLP says application of cutting edge technology can improve the efficiency of China’s booming logistics industry
The booming Chinese logistics industry is also very inefficient, but this is not an issue technology cannot resolve, according to GLP, one of the world’s largest logistics solutions providers.
China’s 230 trillion yuan (US$35.76 trillion) logistics industry, fraught with wastage and challenged by changing consumption patterns, must adopt cutting edge technology. Although the Chinese Academy of Sciences projected that the proportion of logistics costs to China’s gross domestic product will shrink to about 14 per cent this year, it will still be larger than the 8 to 9 per cent recorded in developed markets.
There is a lot of room for better integrating the use of technology in the logistics industry
“Technology is not being deployed in a lot of instances, and its use is very fragmented. There is a lot of room for better integrating the use of technology in the logistics industry,” said Ming Mei, the company’s co-founder and chief executive.
“What we are investing heavily in now is … the multimodal logistics park [concept]. So, basically we are integrating water, rail, motorways and air, based on a customer’s demands.
