How Traditional Logistics in Suzhou is Transitioning to the "Internet Plus" Model_News Center Co., Ltd._Jiangsu Lofise Supply Chain Management Co., Ltd.

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Home > News Center Co., Ltd. > How Traditional Logistics in Suzhou is Transitioning to the "Internet Plus" Model
News Center Co., Ltd.
How Traditional Logistics in Suzhou is Transitioning to the "Internet Plus" Model
Publish Time:2023-11-01        View Count:14         Return to List

"Integrating internet technology with logistics resources will give rise to new industry changes." As the concept of "Internet +" continues to embrace and transform traditional industries, the logistics sector is no exception. Recent interviews with journalists reveal that the traditional logistics industry, under the influence of emerging internet logistics information platforms, is enhancing operational efficiency and transforming the industry's ecosystem.



 
The logistics industry is one of the slowest to transition to the internet, traditionally a sector that has lagged behind. In our country, the outsourcing rate for third-party logistics shippers is high, leading to multiple layers of outsourcing. This leaves very little profit margin for logistics brokers and truck drivers. The majority of third-party logistics providers act as intermediaries, contributing to the ever-increasing logistics costs.
 
In the past one to two years, a series of enterprises and entrepreneurs have launched internet-based fleet operations, integrated logistics parks, or logistics trading platforms, integrating the internet model into traditional logistics as a business model, which holds immense commercial potential.
 
The traditional structure of China's logistics industry urgently needs transformation. On one hand, logistics costs remain high. The "China Procurement Development Report" released by the China Federation of Logistics and Purchasing at the end of last year shows that in 2013, the total logistics cost in China reached 10.2 trillion yuan, accounting for about 17.9% of the GDP. This is not only higher than that of economically developed countries like the United States, Japan, and Germany, but also higher than that of the BRICS countries with similar levels of economic development. On the other hand, the income level of logistics professionals is low, and the industry's ecosystem is in dire need of change.
 
Experts suggest that the key to solving this difficult problem lies in the informatization of logistics, specifically the development of internet logistics. Traditional warehousing and logistics primarily focus on "point-to-point" transportation. However, with the diversification of production and business activities, traditional logistics distribution fails to meet the demands in terms of transportation efficiency and time costs. But when logistics and the internet are combined, coordination between goods and transportation capacity can be achieved through online platforms, forming a "Internet + Logistics" approach, thereby realizing the transformation and upgrading of the logistics industry.

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