China Intelligent Logistics Expert Ms. FEI Chunke: Leading the Intelligent Transformation of International Logistics

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With the continuous penetration and integration of Internet and logistics services, our country has formally entered the era of intelligent logistics services from the era of traditional logistics services. Intelligent logistics is a logistics service system with efficient operation. Through the integration of big data, the Internet, the Internet of Things, intelligent hardware and software and other new era technological means, the information of each link of the whole logistics system can be visually managed, real-time managed, and informationally managed. As an intelligent logistics expert in the front of logistics service in our country, Ms. FEI Chunke has carried out market analysis and study on the construction of international logistics service system. Recently, we had the honor to invite Ms. FEI Chunke for an interview. Let’s take a look at her understanding and research results on the intelligent transformation of international logistics.

Q: What do you think will happen to international logistics trade with the penetration of the Internet?

FEI Chunke: The international market is an extension of the domestic market and an important support for the new development pattern in which the domestic cycle is the main body and the domestic and foreign double cycles promote each other. In the face of the challenges of international trade, the support and guarantee function of the end service system of the international logistics body is more and more obvious. At the same time, under the penetration of the Internet, the transformation management of international logistics informatization, technology and data has become more and more realistic, and will eventually achieve better integration of international trade.

Q: In the context of international logistics intelligence information, what is your main research content?

FEI Chunke: The international market is an important support for the new development pattern of the domestic and foreign double cycles promoting each other. While large state-owned capital has an advantage in the field of sea, land and air transportation, most of them have the characteristics of “big industry but small subject” in the field of overseas storage, after-sales service and other end services. And the construction of network and end service system is insufficient. Therefore, I think international market analysis and its development countermeasures are very important, which is also the focus of my research.

Q: After the comparative analysis of domestic and foreign logistics industry chains, what conclusions do you draw from the market analysis of the international logistics trade market?

FEI Chunke: The international logistics industry chain mainly includes the domestic market, domestic customs, cross-border transport of air, sea and rail, destination customs, overseas warehousing, terminal distribution service and after-sales service. The end service system of international logistics mentioned in this topic mainly includes overseas warehousing, after-sales service and distribution service of end customers in the market. Market analysis involves three aspects, the first is the demand area of overseas storage and the total amount of investment; The second is the annual revenue of warehouse leasing market; The third is the size of the after-sale service market based on warehousing.

Using data from mwpvl, a U.S. logistics consultancy, I calculated total demand for Chinese overseas warehouses at about 354 million square meters, based on Amazon’s revenue per square meter. The total area of newly built Chinese overseas storage is considered as one third, or about 120 million square meters. It is estimated that the investment in overseas storage (construction + equipment) is about 600 billion yuan based on 5000 yuan/square meter. The leasing and cooperative operation area accounts for the overseas storage area achieved through leasing or cooperative operation, and the transformation is carried out at the rate of 1,000 yuan/square meter. The total investment is about 120 billion yuan. The combined investment amounts to about 720 billion yuan. If the market leader enterprise accounts for 30% and the investment period is 6 years, the required investment is about 36 billion yuan/year.

Q: After your analysis of the international logistics trade market, what are your development countermeasures for the intelligent transformation of international logistics and the construction of international logistics service system?

With the development of economic globalization, I am deeply aware of the irreplaceability of the international trade terminal service system. After in-depth analysis of the international trade market, I came up with four development countermeasures: 1. Building an international community of shared interests; 2. Combination of heavy and heavy assets; 3. Networking and operational efficiency are the keys; 4. Improve the effectiveness of the logistics system.

The most effective way to reduce investment risks is to promote in-depth cooperation between state-owned capital, private capital and international capital with market and operation as the center. Cooperation with leading private e-commerce enterprises and manufacturing enterprises can effectively reduce operation risks, ensure the overseas warehousing service system through effective operation platform, and build stable core partners, forming an inclusive international logistics system. Through the combination of light and heavy assets such as acquisition, new construction, leasing and cooperation, and the establishment of regional centers and secondary nodes, we can quickly occupy the market. The use of information technology to build a global network can greatly improve the efficiency of operation and achieve the “door to door” improvement of the international logistics terminal service system. Finally, the next decade is the transition period for international logistics enterprises. We can guarantee the sustainable and stable development of the international logistics system by controlling the key links and strengthening the integration of the industrial chain. (Author/LU Yao)

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