Two Sessions Meets Intelligent Logistics - Words of the Party
March 7, 2019, Beijing - Earlier this month, in a closely watched government work report released at National People's Congress and the Chinese People's Political Consultative Conference (a.k.a. “Two Sessions”), Premier Li Keqiang highlighted the development of Artificial Intelligence over the past 3 years. Logistics was a hot topic at the conference as highlighted by the many references throughout the two days.
Smart Logistics Driving Smart Cities
Zhang Jindong, Deputy of the National People's Congress and Chairman of Suning Holding Group, added, “It is important to incorporate smart logistics into the construction of smart cities. When planning the top-level design of urban transportation, the impact of the development of express delivery on the city should be taken into consideration. Enterprises are encouraged to increase technology and R&D investment to accelerate the transformation and the upgrading of the industry.”
This is the observation, thinking, and promotion followed by thought leaders in the logistics industry. Modern technology, intelligence, and green practices are accelerating the transformation and upgrading of the logistics industry. Enterprises are encouraged to increase investment in technology and R&D and to continuously optimize end-distribution solutions.
Facilitating Innovation-Driven Development
Fengsong Zhang, Deputy of Shandong Provincial People's Congress and Chairman of Tai'an Fengsong Electronic Technology Co., Ltd. added that the government should lead or participate in the development process of urban smart logistics, formulate corresponding industry policies, and support leading enterprises in urban smart logistics development.
He also suggested that relevant government departments should set up special institutions to respond more quickly to enterprise development, adjust relevant system norms, decrease risks in the development process of enterprises, and promote “innovative” enterprises.
Tackling Decentralized Regulation with Unified Platforms
The National People’s Congress believes that the prevalence of unregulated tertiary traffic management and false receipts in China's road transport industry have led to unjustified expenses that have made it impossible for truck drivers to make money. Lack of clarity around what responsibilities should be undertaken by the logistics and transportation industry coupled with general tax evasion adds to complications in regulation.
In response to the above problems, the Congress suggested that the regulatory model should focus on encouraging the development of an independent brokerage platform that would separate driver from the issuance of specific VAT invoices on behalf of the drivers. These are crucial to solving the pain points mentioned above, and to achieving efficient operation of logistics.
Credible Cold Chain
Tingting Chen, Member of the Guizhou Provincial Committee of the Chinese People's Political Consultative Conference and the Provincial Development and Reform Commission, urged, “we must reinforce the need for an efficient and intelligent cold chain logistics system. We hope that the government will provide policies that financially incentivize enterprises to create a smart cold chain logistics system that can cover our entire province.”
Information Platform; Intelligent Logistics
Wang Shiling, Deputy of Linyi City People's Congress and Party Secretary of Shandong Lantian Investment Holdings Co., Ltd. stressed that “Integrating Big Data resources, establishing a unified intelligent logistics data platform, and interconnecting logistics parks throughout the city are the keys to realizing a start-of-the-art logistics industry. This will promote the comprehensive implementation of the ‘intelligence + logistics’ model.”