After the "Double 11" shopping festival, the express delivery industry is gearing up for a massive surge. According to forecasts, the average daily volume of packages during this year's event will reach 250 million. With such a huge influx of orders, logistics companies are turning to technology to keep up with the demand.
In the sprawling campus of Beijing’s Renmin University, two new robotic delivery units have made their way through crowds of students, efficiently delivering packages. These aren’t traditional couriers; they feature bright red, gray, and black exteriors and are remotely controlled from a command center 40 kilometers away by JD.com. This marks a step forward in the automation of last-mile delivery.
Reuters reported from Shanghai and Beijing on November 10 that technologies like these are transforming China’s vast express delivery sector. Faced with labor shortages, fierce competition, and shrinking profit margins, the industry is struggling to handle the 50% annual growth in package volumes. Major companies like SF Express, JD Logistics, Best Express, and ZTO Express have started testing robots and automated sorting systems ahead of the Singles Day sales, which saw 1.5 billion packages shipped nationwide.
Bing Yan, head of the strategic department at JD Logistics, stated, “Wages are rising, but technical costs are falling. Our goal is to automate the entire process—from the warehouse to transportation and finally to the last-mile delivery.†This shift isn’t unique to China. Since 2014, U.S. retailer Amazon has been using thousands of robots in its warehouses to reduce costs and improve efficiency.
However, Chinese companies are adopting these technologies at an even faster pace. Many have raised significant capital through stock market listings. Zhou Yining, founder of Best Express, said, “The speed at which Chinese companies adopt new technologies is extremely rapid. The economy is growing so fast that everyone is competing to keep up.â€
Deng Peng, a representative from a logistics company, highlighted the advantages of developing core components and system integration: “We achieve higher accuracy, more stable control systems, optimized overall performance, better quality control, and improved cost-effectiveness.â€
The trials of automation across China are extensive. Best Express uses robots capable of moving up to one ton of cargo in warehouses, while Alibaba, JD.com, and SF Express are investing in drones to tackle the “last mile†delivery challenge—especially in rural areas with difficult access.
Zhongtong Express has introduced automated sorting lines that can scan and sort packages quickly. According to CFO Guo Jianmin, each line, costing around 4 million yuan, can sort 25,000 parcels per hour with just 40 workers, compared to 120 workers handling only 4,000 parcels manually. He noted that the savings in wages make the return on investment very quick.
Industry executives predict that more parts of the supply chain will soon be automated. Zhou Yuning believes that within less than 10 years, fully autonomous warehouses and distribution centers could become a reality.
SF Express began testing drone deliveries as early as 2013. By February 2017, it had obtained 111 patents in the drone field. The company is now building fully automated transit stations to enhance delivery speed. Manual sorting was once slow and error-prone, but with the introduction of robot sorting, efficiency has dramatically improved. For small packages, automated systems can sort up to 40,000 items per hour with fewer errors.
The question today is no longer whether to adopt robots, but how quickly and effectively to do so. Policy-wise, the “13th Five-Year Plan†for the express delivery industry encourages companies to optimize end-to-end delivery methods and develop multi-channel services like on-site delivery, smart locker delivery, and platform-based delivery. As the industry moves forward, the future of logistics looks increasingly automated.
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