Manufacturing News

Logistics modernization essential to circulatory efficiency

Experts regard the building of a modernized circulation network as a new opportunity for logistics companies and part of China's latest efforts to accelerate the establishment of a unified domestic market that is highly efficient, rules-based, fair for competition and open.

A guideline released on Sunday, underscored promoting the interconnectivity of market facilities, including building a modernized circulation network, improving the exchanging channels of market information and upgrading transaction platforms.

The Beijing News cited Wang Xianjin, vice-president of the China Academy of Transportation Sciences, as saying the modern circulation network plays a prominent role in strengthening the country's economic cycle and building a new development pattern. It is an opportunity and also a challenge for the logistics industry.

To set up such a network means having a global, safe, reliable, efficient and unblocked circulation network, realizing one-day domestic delivery, two-day for neighboring countries, and three-day for major cities around the world, Wang said.

He added logistics is an important link connecting production and consumption. Building an integrated logistics system helps improve the circulation efficiency of commodities and productivity factors, reduces costs and ensures stability of supply and industrial chains.

Enterprises need to consider the whole industrial chain and the new potential development point, said Lu Chengyun, vice-director at the logistics department of the Institute of Transportation Research at the National Development and Reform Commission, the Beijing News reported.

On the one hand, it is necessary to analyze industrial and supply chains and look at industrial processes and circulation to find value points. On the other hand, enterprises should give consideration to the general picture of building a new development pattern, Lu said.

Given factors such as a huge domestic market and optimization of domestic and international economic cycles, companies should understand potential market space, resource structure and industrial layout, and focus on growth points in the future, Lu noted.

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