Three Weaknesses In Supply Chain Logistics. The Final Scale Of Cross Border E-commerce Will Account

On October 15, David Zhang, Vice President and Secretary General of the China International Economic Exchange Center, introduced the current data and general trend of China's cross-border e-commerce development at the first China International Cross border E-commerce Development Conference. According to data, the import and export volume of China's cross-border e-commerce last year reached 1.69 trillion yuan, a year-on-year increase of 31.1%, nearly 10 times the scale of five years ago. It is estimated that the import and export volume of China's cross-border e-commerce will reach 14.4 trillion yuan 10 years later, and the development of global cross-border e-commerce will usher in a high-speed growth period within 5 to 10 years after the epidemic.

Cross border from edge to mainstream, product penetration rate reaches 40%

The rapid development of cross-border e-commerce has ushered in opportunities for China to build a safe, reliable, independent and controllable supply chain system. However, China's cross-border e-commerce logistics lacks an overseas digital international trade platform, lacks the digital transformation of cross-border e-commerce logistics enterprises, and has weak weaknesses in international express business, affecting the construction and security of the national supply chain logistics system.

Zhang David, Vice President and Secretary General of the China Center for International Economic Exchanges, said:

After ten years of development, cross-border e-commerce has gone through the process from heresy to marginalization, and then to mainstream. Last year, the product penetration rate of cross-border e-commerce has reached 40%. Due to the development of the Internet, the Internet of Things, big data and block chain data, more and more cross-border transactions and payments will be carried out through the information platform. It is expected that digital service trade and data trade will be carried out more through e-commerce channels.

Big data forecast: the final scale is 30% of global trade.

According to the data released at the meeting, the final scale of cross-border e-commerce will account for more than 30% of global trade in goods. Five to 10 years after the epidemic, the development of global cross-border e-commerce will usher in a period of rapid growth. It is estimated that China's cross-border e-commerce import and export volume will reach 14.4 trillion yuan in 10 years.

David Zhang believes that the development of cross-border e-commerce is conducive to ensuring the security of the supply chain. At present, it is necessary to build a global and regional supply chain logistics system that can support China's cross-border e-commerce business and achieve sustainable and healthy development.

"The rapid development of digital trade, especially cross-border e-commerce, has brought opportunities for China to build a safe, reliable, independent and controllable supply chain system, as well as challenges for the construction of China's modern logistics system."

Three weak points of China's cross-border e-commerce

01

The digital level of the logistics industry is relatively low, and the development of digital logistics needs to be accelerated.

David Zhang quoted relevant data that in 2020, only 11% of China's logistics enterprises will successfully carry out digital transformation, the overall level of automation of logistics enterprises will be only 20%, and that of developed countries will be as high as 80%.

He said that the digital development of leading logistics enterprises such as SF-express., JD and EMS is fast, but a large number of small and medium-sized cross-border e-commerce logistics enterprises still need to be transformed, and some need to access the "fifth party logistics".

02

Lack of overseas Electronic World Trade Platform (EWTP) .

In order to adapt to the changes in domestic and foreign markets, organize, centralize and deliver goods in a timely manner, China needs to build a number of overseas digital international trade platforms according to the status quo of the global supply chain and regional supply chain and the reshaped layout.

He pointed out that building an overseas digital international trade platform can provide Chinese enterprises with shared overseas warehouses and related services. The service radius can effectively cover the world's first tier cities and important international sea, land, air ports and logistics hubs, provide trunk line transport warehouse to warehouse (W2W) services, and support trunk line and terminal distribution systems to provide door-to-door (D2D) services for consumers in regional and key national markets, Connect with the regulatory services of the local government where cross-border e-commerce goods arrive, and form a multi bilateral access and convenient customs affairs arrangement.

03

The global business of cross-border import and export logistics is weak.

The development scale and capacity of China's international express business still do not match the domestic demand

David Zhang introduced that international express is a transportation mode serving cross-border logistics with high efficiency and high added value, and also a logistics solution that best meets the characteristics of cross-border e-commerce industry. However, Fedex, UPS, DHL and other international giants have monopolized the international express delivery market.

"Although China Post Express Logistics (EMS) has also developed well, its scale and capacity still do not match the domestic demand." He took shipping as an example, "During the epidemic last year, it was hard to find one box of ocean shipping and China Europe regular trains, and the price soared, while China's international air cargo capacity was seriously lacking. Most merchants only chartered or wet leased the 'passenger to cargo' aircraft of airlines to solve the problem of cross-border freight. In addition, the overseas warehouse where the goods arrived was insufficient, and terminal distribution fully depended on the other side's market, which made the logistics costs and operating difficulties of Chinese export enterprises rise significantly."