The robot revolution in China's express delivery industry has begun!

After the "Double 11" shopping feast, express delivery will also usher in "torrent". According to forecast, during the "Double 11" period this year, the average daily express volume will reach 250 million pieces.

In the huge campus of Beijing Renmin University in Beijing, two striking new “delivery crews” quickly walk through the crowds of students to deliver parcels. But they are not typical Chinese couriers. The exteriors are painted in bright red, gray and black. They are future robot delivery officers and are controlled by the e-commerce giant Jingdong Group at a command center 40 kilometers away.

Reuters Shanghai/Beijing reported on November 10 that technology including these two robots is revolutionizing China's huge express delivery industry. In the context of staff shortages, fierce competition and declining profit margins, the industry is struggling to deal with packages that handle 50% annual growth. According to the report, prior to the November 11 Chinese Singles Festival, China's major express delivery companies such as SF Express, JD Logistics, BES Express, and Chutong Express have begun testing robots and automated sorting operations. Singles Day is the annual online discount shopping feast, with 1.5 billion packages shipped nationwide.

Bing Yan, head of the strategic department of Jingdong Logistics Planning and Development Department, said: “Wages are rising, and technical costs are actually falling. Our business includes the entire process... We hope that from the logistics and distribution center to the transportation and then to the last kilometer delivery The entire process is automated.” According to the report, it is true that the robot revolution is not unique to China. Since 2014, AOL, the US online retailer, has arranged thousands of robots in warehouses to help cut operating costs and shorten delivery times.

However, executives in the Chinese express industry say that as they use and develop these technologies faster, they will come back to Amazon. Many Chinese companies are investing in the income from listing on the stock market last year. Zhou Yining, chairman and founder of BES Express, said: "The speed with which Chinese companies adopt new technologies is extremely rapid. The economy is developing so rapidly that everyone is competing in order to catch up."

“The development of core components and ontology has many advantages.” Deng Peng said: First, the integration of design and production is completed, and the accuracy of the robot is higher; secondly, the control system is more consistent, more compatible, and more stable; The overall system has been optimized, and the software system has increased the added value. Fourth, the product quality is better controlled and the cost performance is higher.

According to reports, the trials conducted throughout China are extremely extensive. BES Express is using robots that can move up to 1 ton of cargo in warehouses to help the manual packers work. Online retailers Alibaba, JD.com and SF Express are investing in drones, hoping that one day drones will be able to deliver the so-called “last mile” delivery, especially in rural areas where traffic is inconvenient.

According to reports, other companies such as Zhongtong Express have launched automated sorting lines that can automatically scan packages and pour them separately into bags that are sent to different destinations on both sides of the conveyor belt. Zhongtong Express Chief Financial Officer Guo Jianmin said that with the help of 40 workers, each automated sorting line with a cost of about 4 million yuan can sort 25,000 parcels in one hour. In contrast, a manually operated sorting line with 120 workers can only sort 4,000 parcels an hour. Guo Jianmin said: "Because of the saving of 70 to 80 workers' wages, it is very easy to recover the investment of an automatic sorting line."

According to the report, other executives stated that the wages of the express delivery industry, which has an estimated 3 million workers, have doubled each year, which exceeds the speed of China's economic growth. According to reports, industry executives confidently predicted that more links in this supply chain will appear to replace the artificial machine. Zhou Yuning said: “It may take less than 10 years for us to fully realize unmanned warehouses and unmanned distribution operations. The new development has come too fast.”

In 2013, SF Express began testing drone delivery packages. According to the SF Annual Report, as of February 2017, SFH reported and obtained 111 patents in the field of drones. Now it is building a fully automated transit station dedicated to providing consumers with faster timeliness. The slow speed of manual sorting is the most important factor affecting the timeliness of express delivery. In order to solve this problem, SF Express adopted a robot sorting method to improve work efficiency. In the past, courier sorting and warehousing required manual operations, the speed was very slow, and mistakes were inevitable. After the introduction of the fully automated robot sorting mode, the speed of SF Express sorting expresses has been greatly improved. For small pieces of express mail, the fully automated sorting robot can even reach 40,000 sorters in an hour. The speed and error rate at the same time are significantly lower than manual sorting, which is undoubtedly the most effective means of increasing production efficiency.

The question now is no longer whether to introduce robots into the logistics industry in large numbers, but how fast we should introduce robots and how to prepare for them. In terms of policies, the “Thirteenth Five-Year Plan” of the development of the express delivery industry proposes to guide enterprises in optimizing their end-to-end delivery methods and form a multi-end service system such as on-site delivery, smart box delivery, and platform delivery.

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