From AI to drones, firms deliver industry of future

Unmanned vehicles

The integration of new technologies, such as unmanned vehicles and drones, is reshaping courier services.

In March, a drone carrying imported goods took off from a bonded zone in Qingbaijiang district, Chengdu, Sichuan province, and landed at a ZTO Express' parcel-sorting center in the city's Xindu district after a 20-minute flight.

Unmanned vehicles then took over to deliver the parcels to an outlet. ZTO Express has reported a 50 percent increase in delivery efficiency and a nearly one-third reduction in operating costs since adopting a transportation model combining drones and unmanned vehicles.

"The use of unmanned equipment is also intended to complete the last mile of express transportation in complex road conditions, such as mountainous and rural regions. So far, about 1,000 unmanned vehicles have been put into operation across the ZTO Express network, covering more than 180 cities," said Yang, the manager.

Yunda Express is also rapidly introducing unmanned vehicles, with over 2,000 operating in urban communities and rural areas. In Tongxiang, Zhejiang province, the company's local branch has deployed 30 unmanned vehicles, with each able to send up to 2,000 parcels per day, enhancing logistics efficiency and reducing costs by 30 percent compared with traditional methods.

In Baoji, Shaanxi province, a Yunda outlet uses 10 unmanned vehicles for short distance transportation between its warehouse and a district branch. The daily delivery volume of the outlet has reached 70,000, with around 50,000 done by the unmanned vehicles.

Yunda is also expanding its use of drones, with five drone routes already in operation. The drones are used for high-value deliveries — such as fresh food and medical supplies — in cities including Hangzhou and Jiaxing, significantly reducing delivery times and labor costs.

The rapid progress in high-tech applications has been continuously supported by local governments eager to encourage digital technologies, such as intelligent warehousing, scheduling based on big data, and route optimization.

Around a decade ago, when the industry faced large-scale equipment upgrades and transformation, the Qingpu district authority established a special fund to subsidize intelligent technological improvements and construction of digital platforms. It also facilitated green channels for banks and other investment and financing platforms.

Data from the district authority showed that last year, the transportation cost of express delivery companies headquartered in Qingpu dropped to around 0.41 yuan, a year-on-year fall of 10 to 30 percent.

"Only with such affordable logistics costs can the rise of numerous 'Taobao villages' in China be possible," said Yang from ZTO.

In 2016, Qingpu was designated as the sole national demonstration zone for the transformation and development of the express delivery industry. Three years later, the modern logistics industry became the first 100-billion-yuan industrial cluster in the district.

However, Liu Jingjun, deputy head of Chonggu town in Qingpu, said that the volume of express deliveries is already at a high level and is unlikely to further rise significantly. The focus, therefore, will be on high-quality development and seeking productivity from technology, he said.

"For example, technology can play a part in further reducing deliveries that go missing and increasing loading efficiency. If a vehicle can carry 10 boxes, it shouldn't drive off with nine boxes loaded," said Liu.