Service-sharing platform links all players
Intelligent logistics has become a key driver of the nation’s cargo transportation sector, helping to streamline the life cycle of the transportation process in an era when late delivery is not an option.
Hangzhou-based Transfar Group, a private logistics conglomerate, has been striving to build China’s intelligent highway logistics network in a bid to connect cargo, freight trucks, logistics enterprises and warehouses to reduce costs and improve efficiency.
Transfar Zhilian, one of the A-share listed firms of the group, has made intelligent logistics a top priority for its development, launching Transfar Network, a smart logistics supply chain service platform that helps corporate clients with freight demand connect with logistics companies.
The service-sharing platform for highway cargo and freight transportation enables truck drivers to ensure they have access to a full load by utilizing different resources. Meanwhile, it has great appeal for small and mediumsized businesses, as it provides lower costs and faster delivery.
To make the whole network run smoothly, Transfar Zhilian has so far planned a layout of more than 120 highway logistics ports throughout China, with 65 now in operation. They serve as transportation hubs, aggregating drivers, trucks and cargo.
“The mode of road ports, as an innovation in the highway cargo logistics sector, effectively integrates small and scattered logistics operators by providing one-stop and chain services for all,” said Zhou Shengxue, senior vice-president of Transfar Zhilian.
For example, the Hangzhou Transfar road port currently integrates more than 300,000 cargo vehicles, serving over 30,000 enterprises in Hangzhou and nearby areas. Since 2003, it has nurtured more than 100 small and medium-sized logistics firms, with three realizing annual revenue of over 100 million yuan ($15.6 million).
Based on its road ports and financial services, Transfar now provides comprehensive services in the logistics supply chain. It has two e-commerce platforms — Lujing, which provides cargo shipment between cities, and EHD, which provides easily accessible logistics services online for inner city deliveries.
It has also developed its own cloud system that can connect and coordinate warehouses throughout the city by sharing information and forming a distribution storage network. As a result, goods can be put in storage and distributed at the nearest locations, cutting transportation costs and time by big margins.
By the end of last year, the Transfar Network had reached more than 300 cities in China, covering over 30 provinces, municipalities and autonomous regions. There are currently more than 2 million member vehicles registered with the network, connecting millions of businesses and 175,000 logistics service providers with a daily throughput of 2.15 million metric tons of cargo.
Statistics show that in cities, where such logistics ports are launched, the logistics costs have been reduced by 40 percent. Truck drivers can now earn as much as 20,000 yuan a month, as opposed to several thousand yuan previously.
In addition, with improved efficiency and a big reduction in invalid loads, carbon dioxide emissions have been reduced by about 192,000 tons in each city on average each year, greatly contributing to environmental protection in these areas.