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    Shentong Express Plans To Change: Digital Writing Into Gene

    2020/12/4 11:21:00 2

    ChangeDigitizationGene

    When the express industry came to the 12th double 11, "price war" did not disappear. An issue related to the survival of express enterprises has to face: what will win the future?

    The time point of the National Post Office monitoring data came to November 16, the business volume of China's express industry ushered in a milestone breakthrough - more than 70 billion pieces. In this context, the number of packages of Shentong express has also reached a record high. In the first ten months of this year, the number of express packages reached nearly 6.9 billion, more than that of the same period last year.

    The industry has been developing at a high speed. However, the competition is becoming more and more severe. The pressure not only comes from the continuous "price war", but also comes from the self iteration of an organization. In Shentong express, tens of millions of packages need to be delivered accurately and safely every day. This is a huge project, the traditional mode of operation has been difficult to guarantee, the transformation is imperative.

    Even more critical is the sustainability of growth.

    At this year's double 11 support and mobilization meeting, Chen Dejun, chairman of Shentong express, stressed: "the deepening of cooperation between Shentong and Alibaba will continue to promote the rapid iterative upgrading of Shentong's informatization. In the future, Shentong should seize the opportunity in new services, new markets, new technologies and new applications, and reshape Shentong's competition in the industry through product innovation, terminal layout and technology upgrading layout Force. "

    To reshape competitiveness and upgrade growth engine power, Shentong express is determined to write digitalization into the gene of future development.

    From digital 1.0 era to 2.0 era

    "Putting goods in the place closest to users" is the advantage of e-commerce self operated logistics through extensive warehouse distribution. But if express companies want to achieve this scenario, it is no different from rebuilding a new business system. However, this year's double 11, Shentong express launched the "pre-sale sinking project" with rookies. In 162 cities across the country, it moved pre-sale goods to the site or distribution center nearest to users, and realized "making goods closest to users" from the express terminal for the first time. The key to project realization is to remodel the technical system.

    At this year's double 11 support and mobilization meeting, Shentong express announced that cloud infrastructure supports the whole station business system for the first time. This means that Shentong express continues to seek change on the digital road.

    The so-called digital transformation is to use digital technology (such as big data, cloud computing, artificial intelligence, etc.) to promote the transformation of business model, organizational structure and corporate culture. In the past ten years, the domestic express delivery industry has been "savagely growing" by means of "price war". However, when the price of single express ticket is approaching the marginal cost, the scale growth space brought by "price war" is limited, and express enterprises must inject new impetus into the future development.

    In this regard, Shentong express chose digital transformation, and started from last year.

    The two sides have signed the agreement on digital delivery of Zhejiang Cainiao, which will further improve the efficiency of the digital delivery service, and enhance the efficiency of the digital delivery service.

    In April and June this year, the digital upgrade of Shentong express went further: it released a full view integrated management system of industry and finance for the outlets, namely, the store manager, and the digital business solution platform for the whole network, the financial steward. Then in September, Shentong express's "housekeeper system" product matrix was fully exposed, and the core products including outlet housekeeper, center housekeeper, financial housekeeper, transportation housekeeper, routing housekeeper, cockpit and other core products were completed, covering the whole business process of collection, transfer, delivery and customer service. So far, the system layout of Shentong express in the digital 1.0 era has been completed, the basic problems of digital construction have been solved, the digitalization of all link elements has been realized, and several solutions such as digital distribution, intelligent transportation and risk control have been formed.

    The value brought by productization is immediate. Taking "outlet housekeeper" as an example, the product has solved many operational problems such as timeliness of account management, service quality, operation ability and survival ability of outlets. Since the "network housekeeper" was launched, the replacement rate of new and old systems has exceeded 80%, the efficiency of network operation has been improved by more than 50%, and the human resource saving has been over 10%.

    In this year's double 11, Shentong express ushered in the dividing point from digital 1.0 era to 2.0 era.

    According to the calculation of the 21st century economic reporter by Shentong express technical personnel, the construction of digital 1.0 era, Shentong express has realized the cost reduction of 200 million yuan for the scientific and technological relevance of operation network. However, the digital 1.0 era still stays in the superficial changes of the digital logistics elements. In the 2.0 era, it goes further, turning data into digital capabilities, and building products and solutions from digital capabilities, so as to make the whole process of logistics more intelligent and refined.

    In the 2.0 era, the goal of Shentong express has become more direct: intelligent optimization, cost reduction and efficiency increase. From the second half of 2019, the reporter team of Shentong started to understand the economic expansion from the second half of 2019. As of this year's double 11 period, the company's technical team has almost doubled. Shentong express said that in the era of Digital 2.0, the company should upgrade its refined operation through the industry-leading digital solution capability and IOT software and hardware integration capability, facing the scenarios of digital station, capacity coordination and policy regulation, so as to achieve the industry-leading single ticket operation cost and service quality.

    Digital core action of Shentong express

    Why is Shentong express taking the lead in digital transformation?

    This is inseparable from the support of its close relationship with ALI. In September 2020, Alibaba invested 3.295 billion yuan to increase its shareholding in Shentong express, indirectly acquiring 10.35% of the shares of Shentong express, increasing the cumulative shareholding ratio to 25%. Digitalization is a long-term strategy of Ali. Shentong express is the closest to digitalization and the best target of digital transformation.

    The 21st century economic report reporter observed that the digital transformation of Shentong express is divided into three parts: first, the whole station business will be transferred to Alibaba cloud; second, Minas engine will be applied; third, digital scale application of intelligent factory will be realized, and intelligent network will be upgraded.

    From moving the core system to alicloud in 2019 and completing the whole station business in cloud on double 11 this year, Shentong express has become the first organization in the express industry to use public cloud. "This means that there is a foundation for innovation on the technology side." Shentong express technical personnel told the 21st century economic reporter that the development of express industry requires more and more technical support, and stability and cost are indispensable.

    Shentong express on the cloud, had to do. Before 2019, the company used the offline computer room as the computing and data storage platform, and the business system was based on the traditional IOE enterprise architecture. With the rapid growth of business scale, exponential growth of data volume and diversification of business forms, the traditional IOE architecture has encountered bottlenecks. The nonstandard, poor stability and low R & D efficiency of each system architecture restrict the development of business. In addition, if encountering double 11 and other big promotion, a longer period of server procurement and preparation on the shelf is more time-consuming and labor-consuming. However, cloud native technology has the natural advantages of solving the problems of slow upgrading of traditional applications, bloated architecture and inability to quickly iterate, which brings the most urgent value to Shentong express. Compared with last year, the double investment of it was significantly reduced by 11%, and the effect was significantly increased by 11%.

    Shentong express digital another landmark action, is the gradual application of Minas engine.

    Minas engine is called package engine internally. It is a package big data infrastructure customized for a global network of express delivery scenarios. It performs real-time processing, real-time update, real-time analysis and continuous deduction of the whole life cycle data of massive packages, and provides strong data support and business simulation capabilities for intelligent decision-making. The above-mentioned technical personnel told the 21st century economic report that Minas engine aims to build a unified package big data, "it is like an account book, which can see the past, present and future of the entire logistics network, and can also do a good job in risk control. For example, it stores more than 20 billion face sheet data of Shentong express in the past five years. If there is a branch that sends packages with old noodle sheets, the system will not only Problems will be found and the error correction will be millisecond. "

    Cloud on the system solves the problem of growth space; unifies the package data and builds the data infrastructure. Shentong express's next action is to build an intelligent factory, covering the application of digital equipment, the intelligent upgrade of transfer center, and the interaction between people and equipment.

    In this step, Shentong express made use of the newbie's PDA product Lemo and the dispatch order app "rookie package man" for express delivery. The application of the former is that the digital warehouse task will be sent to Lemo, and the workers in the physical warehouse will be guided to complete the tasks of picking and replenishing based on the acousto-optic technology in the form of vibration and light flicker, so as to realize the real-time synchronization between the physical warehouse and the digital warehouse; the latter application is that after the parcel Xia app is registered, the courier can receive the order online, undertake the rookie wrapping, Taobao, tmall, and idle fish Taiwan's delivery requirements.

    Up to now, Lemo has achieved full scene coverage in Shentong express, and the cloud edge architecture of 108 transfer centers has been fully implemented, covering 10 scenes of transfer centers and 12 scenes of outlets, with a total of 45 functions, and 675 venues in total. The practical efficiency has been effectively improved by 20%; the utilization rate of "rookie wrapped swordsman" in Shentong express is more than 90%.

    This year, Shentong express Shanghai smart Logistics Park demonstration base officially joined the promotion ranks. This is a new type of transfer center with the highest degree of automation and the most advanced technology in Shentong, covering a total area of 128 mu, with a construction area of 160000 square meters and a daily processing capacity of up to 3.5 million tickets. As a new generation of transfer center, Shanghai smart logistics demonstration base has realized the whole process automation. From loading and unloading trucks, weighing and scanning to sorting, a parcel greatly reduces manual intervention, and the accuracy rate reaches 100%.

    After the rapid development of e-commerce era, express industry has become a social infrastructure like hydropower and coal. The number of express delivery has jumped from 50 billion to 300 million in a row.

    Under such a general trend, the "price war" can not win the future competitiveness. Shentong express's choice is to accelerate the digital transformation and integrate the digitalization into the gene of Shentong express. The end is yet to be known, but based on the digital transformation, technology driven into the network, products, operations, services, changes will naturally come.

     

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