Chinese online retailers are ramping up their efforts in intelligent logistics operations by using drones, robotics and driverless vehicles for parcel delivery, aiming to bring down costs and transform the logistics industry.

The country's second-largest e-commerce player JD has been leading the utilization of automation technologies to solve the last-mile delivery problem, the costliest part of overall parcel delivery costs.

It plans to build 150 operational sites for drone deliveries in Sichuan province, using robots and automated cars to speed up the process. JD CEO Liu Qiangdong said the sites are expected to open within three years and drone deliveries could help reduce freight costs by 70 percent.

The company used drones to deliver packages in Xi'an, capital of Northwest China's Shaanxi province, during its June 18 shopping festival last year. It also successfully used drones to deliver online purchases to rural shoppers in Jiangsu province in 2016.

The e-commerce giant has carried out smart robot deliveries at several universities, such as Renmin University of China, Tsinghua University and Zhejiang University. The robots are able to plan their routes with the help of an automatic navigation system, which also assists them in avoiding obstacles. They then send messages to the recipients when they are about 100 meters away from their destinations. Each robot can carry up to five packages and make 10 to 20 deliveries per day.

JD has also partnered with Chinese automakers SAIC Maxus and Dongfeng Motor Corp to conduct research on the country's first automatic vans, which would deliver goods from JD's distribution centers to delivery stations.

It began developing its automatic delivery vehicles in 2016, aiming to employ unmanned delivery vehicles to conduct bulk deliveries to office buildings and residential areas in cities to boost delivery efficiency.

"Working with our partners, we will continue to enhance our smart logistics and push the bounds of our traditional logistics solutions," said Wang Zhenhui, CEO of JD Logistics.

JD currently operates China's largest nationwide delivery network and is able to provide same or next-day delivery to a population of over a billion. Its logistics innovation lab is also researching other advanced automated technologies such as automated warehouses to enhance the user experience.

Its major rival, Cainiao Network Technology Co Ltd, the logistics affiliate of Alibaba Group Holding Ltd, is conducting tests for self-driving trucks to extend its reach in the logistics sector. "The application of delivery robots and automatic vehicles could enhance delivery efficiency and reduce costs," said Lu Zhenwang, CEO of Shanghai-based Wanqing Consultancy.

Lu added e-commerce giants are aware of the significance of intelligent logistics and have invested massively in the intelligent logistics sector to gain the upper hand amid fierce competition.

(China Daily 02/08/2018 page18)