After the "Double 11" shopping frenzy, the express delivery industry is set for a major surge. According to forecasts, the average daily volume of packages during this year’s "Double 11" period is expected to reach 250 million pieces. As the demand soars, companies are turning to advanced technology to meet the growing needs.
In the bustling campus of Beijing Renmin University, two eye-catching new “delivery crews†move swiftly through crowds of students, delivering parcels with precision. These are not your typical couriers. Painted in bright red, gray, and black, they are robot delivery units controlled remotely from a command center 40 kilometers away by JD Logistics. This marks a step toward a future where automation plays a central role in the logistics sector.
Reuters reported from Shanghai and Beijing on November 10 that technologies like these are transforming China's massive express delivery industry. With rising labor costs, intense competition, and shrinking profit margins, the sector is struggling to keep up with a 50% annual growth in package volume. Leading companies such as SF Express, JD Logistics, BES Express, and Chutong Express have started testing robots and automated sorting systems ahead of the Singles Day shopping event, which sees over 1.5 billion packages shipped nationwide.
Bing Yan, head of the strategic department at JD Logistics, stated: “Wages are rising, but technology costs are falling. Our goal is to automate every stage of the supply chain—from the logistics center to transportation and finally to the last-mile delivery.†This shift is not unique to China. Since 2014, U.S.-based Amazon has been using thousands of robots in its warehouses to cut costs and improve efficiency.
Chinese companies are also racing to adopt these innovations quickly. Many have raised significant capital through stock market listings, enabling them to invest heavily in automation. Zhou Yining, founder of BES Express, noted, “The speed at which Chinese companies adopt new technologies is extremely fast. The economy is growing rapidly, and everyone is competing to stay ahead.â€
Deng Peng, a representative from another company, highlighted several advantages of local technological development. “The integration of design and production allows for higher accuracy in robots. The control systems are more stable, compatible, and consistent. The overall system is optimized, and the software adds more value. Additionally, product quality is better controlled, and the cost-performance ratio is improved.â€
China’s pilot projects for automation are extensive. BES Express uses robots capable of carrying up to one ton of cargo in warehouses, assisting manual packers. Meanwhile, Alibaba, JD.com, and SF Express are investing in drone technology, aiming to revolutionize the “last mile†delivery, especially in rural areas where traditional transport is challenging.
Zhongtong Express has introduced automated sorting lines that can scan and sort packages efficiently. According to CFO Guo Jianmin, an automated line costing around 4 million yuan can sort 25,000 parcels per hour, compared to just 4,000 by a manually operated line with 120 workers. He added, “With the savings from 70 to 80 workers’ wages, it’s easy to recoup the investment.â€
Industry executives believe that automation will soon replace many manual tasks. With an estimated 3 million workers in the sector, wages have doubled each year, outpacing economic growth. Zhou Yining predicted, “We may achieve fully unmanned warehouses and distribution within less than 10 years. The pace of change is too fast.â€
SF Express began testing drone deliveries in 2013. By February 2017, it had obtained 111 drone-related patents. It is now building fully automated transit stations to improve delivery speed. Manual sorting was once slow and error-prone, but with the introduction of robotic sorting, efficiency has skyrocketed. For small packages, robotic systems can sort up to 40,000 items per hour, with fewer errors and faster processing.
The question today is no longer whether to adopt robots, but how quickly and effectively to do so. Policies like the “13th Five-Year Plan†for the express delivery industry encourage companies to optimize delivery methods and develop multi-channel services, including on-site delivery, smart box delivery, and platform-based solutions.
As the industry evolves, the future of logistics looks increasingly automated, efficient, and intelligent.
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