Transportation Demand Rises Rapidly, Logistics Industry Becomes A Key Link In Resuming Industry

Intern Zheng Wei reports from Guangzhou

If it were not for this epidemic, February 10th was originally the date of delivery of orders from Guangzhou SKYWORTH Graphic Display Technology Co., Ltd. (hereinafter referred to as "Guangzhou SKYWORTH").

But now it's time to go back to work. In the four main building production and assembly workshop, 4 production lines have only reopened 2, and the factory area is quiet.

"Of the 1150 employees, only 450 workers are on duty, so the production capacity can only be maintained at 50%." At the moment, Guangzhou SKYWORTH general manager Li Jie Wei even can not afford to upgrade production capacity. He is still rushing to find raw materials.

It turned out that the raw materials of SKYWORTH Guangzhou had been kept for only 3 days, and the suppliers far away from Zhejiang still did not return to work.

This is only one of the epitome of the "broken food" of the downstream enterprises' supply chain. According to the twenty-first Century economic report reporter, on the one hand, affected by the delay in the resumption of work, coupled with the escalation of prevention and control in the context of high-speed roads, many logistics enterprises have already been unable to meet the needs of the resumed enterprises. On the other hand, logistics companies are experiencing various cost pressures including rent, wages and so on, due to the delay in re employment.

Pressure is finally transmitted to logistics companies.

Referring to the impact of the epidemic on the logistics industry, Zhou Jilong, CEO of Yun pomelo logistics in Chengdu, has a deep feeling.

"More and more enterprises are returning to work, and the demand for transportation is increasing rapidly. But for the logistics industry, the supply side has a big problem." Zhou Jilong bluntly said that there are too few carts drivers to run.

He told the twenty-first Century economic analysis reporter that the supply side of China's logistics market is the vast majority of vehicles are individual vehicles, and the majority of individual owners are mainly rural owners, especially Hubei, Henan, Shandong, Anhui, Hebei and other individual owners.

"Compared to the growth of logistics demand, the biggest problem in the logistics market is the lack of vehicles. We recently made a return visit to hundreds of large car drivers on the company platform and found that only 10% of them were able to get out of the car. Zhou Jilong complained that the vast majority of carts drivers were also "isolated" in the village, and even some villages were more exaggerated, and the roads were blocked by excavators, causing people and trucks to get out completely.

In his view, logistics industry is the most serious affected by the epidemic logistics companies, most of which are small and micro enterprises. "If we compare logistics to 100%, more than 90% of the transaction volume or market capacity will be in the hands of small and medium-sized enterprises, and the proportion of express companies such as Shun Feng and" four links and one Da "will be 9%.

Zhou Jilong believes that enterprises will delay the resumption of work, in fact, the pressure will eventually be transmitted to the logistics company.

Jiang Haihui, director of Guangdong Kang hang logistics and transportation, told the twenty-first Century economic report reporter that the logistics industry itself is a very tight capital industry. The risk resisting ability of logistics companies is generally not strong, and it is more difficult for SMEs to withstand the impact of market fluctuations.

Zhou Jilong also said that logistics companies usually pay weekly or monthly checkup for upstream customers. Sometimes, for large business customers, quarterly checkout is required, but logistics companies need to pay as soon as possible for individual drivers in the lower reaches. "The cash flow of these logistics companies is very tight, including cash for wages and rent, usually less than 3 months."

In addition, the most direct impact on the logistics companies is the rising cost of manpower and rent. There are 126 employees in Jiang Haihui's company. The cost of labor alone is as high as 100 yuan, while the rental of office and warehouse sites is more than 100 thousand yuan per month.

"The factory has not resumed work, our logistics company can not deliver the goods, and the wages, office and warehouse rentals are payable on a monthly basis, and the pressure is enormous when there is no income." He said.

The logistics industry will affect the entire supply chain.

In fact, the logistics problem is even more serious in the field of manufacturing industry.

"The demand for transportation is in fact mostly from the manufacturing and circulation of physical goods. Before any product is produced, it is inseparable from the transportation between suppliers." Zhou Jilong gave examples of manufacturing logistics problems.

The consumer orders a cup, express is only the last link in logistics, but from raw materials to factories, from factories to distributors, the logistics transportation in the middle is very complicated.

Zhou Jilong analyzed the twenty-first Century economic report reporter, a manufacturing plant may have 2-3 suppliers, and a supplier may also serve 2-3 customers at the same time, so these needs need many small and medium-sized logistics companies to complete.

Huang Jianguo's Changsha Yin Han logistics company, mainly in the Pearl River Delta region's electronics industry company. He judged that even if the enterprises resumed, the full return of the logistics enterprises would be delayed until the beginning of March.

"The smooth flow of logistics industry determines the supply chain of an industry to a large extent. The return of an enterprise only means that a link in the industrial chain can restore capacity. Upstream suppliers and downstream distributors need transportation in the logistics industry, so logistics can also be called the key link restricting the supply chain. Huang Jianguo said.

He takes the electronic manufacturing industry in Pearl River Delta for example. Dongguan's electronic factories receive orders, which need to be supplied by upstream suppliers in Hunan. They also need to deliver products from Dongguan to downstream distributors all over the country. "It's like a chain of rings. For example, during the Spring Festival, the upstream raw materials could not be delivered because of the road closure, which directly affected consumers who bought mobile phones downstream.

A business owner who did not want to be named told the twenty-first Century business news reporter that some suppliers in Wuxi could not deliver their products to Guangdong in time because of the closure of the epidemic, so they could only change suppliers nearby. But this involves a series of processes to go, including looking for nearby suppliers, audits, process docking, and so on, so the whole industry chain will be affected.

In addition, the business owner also reflects that the transport cost of the products has been greatly increased because of the re promotion of the epidemic situation this year.

"We completed a number of overseas orders a year ago. We originally planned to ship them in the early part of the new year. But because of the higher threshold for the relocation of the parks and the missed delivery time, we can only change from sea to air transportation after the resumption of No. 10, and at the same time, our cost has increased by nearly 50%. In his view, because of logistics, not only the cost of their own increase, but also led to the downstream company's finished product price has lost competitiveness.

According to the twenty-first Century economic report combing reporters found that Shen Tong, Zhong Tong, Yun Da, Baishi, Debang express and other enterprises express service outlets have resumed normal business on the 10 day. China Post, Shun Feng, Jingdong logistics and Suning logistics have been operating normally. Even so, the express industry can only recover to 4 of its normal capacity by the middle of this month.