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Dear friends and entrepreneurs in the logistics industry, everyone is struggling in all walks of life.
I think this kind of discussion is very necessary every year. Today’s logistics conference is also my own request to participate in yesterday afternoon, and I asked to speak.
I seem to have very little initiative, but I think logistics is extremely important to the Chinese economy, to the future of China, to the world economy and to the future of the world.
In the past 15 years, China’s logistics industry has undergone tremendous changes. The express delivery industry has started from 0, and today it is the world’s largest, accounting for 40% of the world.
Five years ago, China’s express parcels reached a miraculous 9.2 billion, and China’s express parcels will exceed 50 billion this year. Express parcels start at 0, and today there are 130 million parcels per day, which is also the world’s number one. The courier also starts from 0, if there are over 5 million employees in the takeaway today. Express companies are also starting from 0 to today, and in the past few years, there have been seven listed companies.
In the five years since the rookie was born, these five years are five years in which China’s logistics development is becoming smarter and smarter. Five years ago, few cities in China were able to achieve the same day, because with the efforts of rookies and all of you, we covered 1,500 districts and counties today.
The average timeliness of global logistics five years ago was about 70 days. Thanks to everyone’s efforts, the logistics speed of China and major countries has reached 10 days.
Five years ago, Customs’ B2C parcel clearance was 1 million a year, and now it is 1 million a day. Five years ago, the use of express boxes was very extensive, and now the rookie technology algorithm optimizes the matching of the box type, reducing at least 75 million cardboard boxes a year.
The core behind these numbers is data, and the core behind it is technology, which is computing. Behind these figures is the result of innovation and cooperation in the logistics industry.
Today, 100 million packages are used every day in the rookie network. Starting from the logistics list, the rookie has a data-based infrastructure and has automated pipelines and robots. These explorations, these achievements are the result of joint efforts in the logistics industry. It is also the result of the efforts of thousands of express delivery staff.
China’s logistics industry is very fortunate to catch up with the best times. But China’s logistics industry is also unfortunate. Unfortunately, we have just adapted to 100 million parcels a day, and we will soon face the challenge of having 1 billion parcels per day. This is what I said last year, and we will soon face a day 10 Billions of parcels, but at that time, there were still concerns in everyone’s mind, but now it seems that 1 billion parcels are approaching us.
Many years ago, I said that China’s parcels will exceed one billion, which was 12 or 13 years ago. At that time, I believe that not many people believed, but the package of one week exceeded 1 billion. The peak of the double 11 package today will be the average of 8 days later, or 10 years later.
So I was thinking, we have to seriously think about it, we have to prepare for it, 1 billion parcels a day, millions of couriers, millions of couriers, we don’t say anything else, we speak every day. Traffic accidents on the road may make us confused.
So all this, we have to think about the situation, what kind of infrastructure we take, what preparations to support the development of this one billion package. We must understand that to do business, to do any business, to do any business, we must have a vision of the future, we must look at the future from today, we must look at China from a global perspective, from the world market.
There must be a holistic view. Only how we cooperate within the industry can make one billion or even two billion packages a day. I think that the previous logistics is basically based on manual labor, but it must be mental work in the future.
Today, China’s logistics scale is even bigger. Whether we talk about 50 billion parcels or 80 billion parcels, it is mainly based on manual labor. It is driven by thousands of couriers carrying shoulders. But in the future logistics industry, I firmly believe that it must be mental work, brain-driven, and not let our couriers be like robots on the assembly line.
In the past 20 years, many of us have turned people into machines, and in the next 20 years we will turn machines into people. So the future rookie mission is to be the brain of the logistics industry. Since the birth of the rookie, his mission is not to do the delivery, but to help the delivery company to deliver goods and help the logistics company to be better.
In the future, the rookie’s mission is to be the brain of the logistics industry. As I said before, Alibaba will not participate in express delivery, nor will it do express delivery, but we will support the express delivery industry. Alibaba must have its own logistics framework to think about it. It must promote the logistics industry in the country and the world, and do things that others are unwilling to do and cannot do. This is the rookie’s mission. If the rookie can succeed, it must do things that others are not willing to do and have to do.
The rookie is not doing logistics, but building a logistics network. In the past five years, rookies have mainly solved the problem of e-commerce. Today, rookies must solve big problems for customers in the industry. Our country is transforming into new manufacturing, and the seamless connection of the logistics backbone becomes extremely important.
Without this, there would be no new retail and no new manufacturing. This is what the rookie and logistics industry do for the country for the world. Based on these thoughts, I announced to everyone that the rookie will go all out to build the country’s intelligent logistics backbone network. Five years ago, when we established a rookie, we had an ideal and hoped to build a national intelligent logistics backbone to support the future development of China.
The ideals we have put forward are realizable in China, and can deliver cargo within 24 hours in any region and anywhere. In the past two years, we have proposed that in any region of the world, 72 hours of cargo transport will arrive.
To this end, we announced that we will invest hundreds of billions to build the national intelligent logistics backbone network. If the billions is not enough, we will invest hundreds of billions to invest most of the investment that Alibaba can have in logistics, because we believe that only logistics The infrastructure is good. Only the entire logistics backbone network is good, and the entire manufacturing industry will undergo tremendous changes. The entire real economy will truly become the support of the society, the support of the country, and the support of the world.
Not only because we can do it, but because we have to do it, our goal is to reduce the logistics cost of 15% of China’s GDP to less than 5%. Detailed and detailed plans, the rookie will inform everyone in the future.
This “National Intelligent Logistics Backbone” built by rookie will consist of two parts. A network is in the country, to be 24 hours in any place, to reduce the proportion of China’s logistics costs to GDP below 5%; another network is along the Belt and Road, eWTP nodes, on a global scale Arrived in 72 hours.
This network is national and even more global. Today, the rookie connects more than 3 million couriers and more than 30 million square meters of warehouses, but it is not enough. This network should be connected to all the national and global logistics express delivery companies, all the warehouses form a network, all connected. For a logistics company, any single point is useless. Need more points, connect these points into a network, and form a network effect.
This network is faster, more efficient, and more accurate. We need to connect every courier, warehouse, city, and home. Our wish is to have a 24-hour cargo nationwide and a 72-hour cargo delivery worldwide. I have always believed that the north and the north and the deep are not fast, we are fast in Yunnan and Guizhou, and we are fast in Inner Mongolia and Tibet. We want to let Norwegian salmon come ashore in the morning and arrive in Hangzhou at night.
We want to prove that technology can create more possibilities for the good life of mankind. This is the cooperation of the logistics industry. I just asked the four links, and we have changed from 9.2 billion bales to 50 billion bales. We are constantly working hard, and the logistics company may be China’s most confident company for the future.
Some people say that Alibaba has been too radical in the past two years, investors are not satisfied, saying that we have invested more than 30 billion US dollars. I think that more than 30 billion US dollars is only just beginning. We have confidence in ourselves. We have confidence in technology. I have China. Confidence, we have confidence in the entire era of the future. Why don’t we invest? Of course not blind investment.
We have to do what our partners can’t do and can’t do. The rookie must fly by himself, but also let the various logistics companies fly on the platform of the rookie to solve the problems faced by the world, the country, the society and the industry. This network must be technology-driven, relying on technology, relying on data, and the power of sharing to bring together all the world’s logistics.
This network is not yesterday’s UPS, not FedEx, nor today’s SF, not today’s four links, but a set of unique systems that the world has not seen. When the takeaway came out, no one thought that the first unlucky one was a fast food restaurant. The development of the express delivery industry may be the elimination of refrigerators, but what we want to eliminate now is inventory, because one of the most important reasons for killing many small and medium-sized enterprises around the world is the amount of inventory.
So I think logistics is originally based on containers, but the future depends on parcels. When relying on containers, the United States, Europe, and Japan are major logistics countries. However, when it comes to parcels, China should take responsibility as a logistics force, form an effective and valuable role for the whole world, and establish a global intelligent logistics backbone network. Thinking for tomorrow’s logistics. Thinking about solving the social problems of the real world and the industry. This is some of the problems that all our logistics companies should invest in and think about.
I believe that we can be a company, and we can’t avoid it in the future. World trade will change from container to package because of the change of logistics. World trade has changed from a simple enterprise to a trade between enterprises. All these changes must be prepared for and fought for it.
World trade is unstoppable and globalization is even more unstoppable. Therefore, I think that our logistics industry has not moved, the grain and grass are the first, and our preparation and efforts can make globalization more inclusive and let globalization truly spread to the whole world. We must have global thinking. Whether the logistics industry should compete or not, we must compete and not compete, and we will not have today. If you don’t compete, you won’t be born a great company like UPS. But the purpose of competition is for future competition.