Jack Ma: Logistics is Where China’s Great Miracle Has Been

17 Aug Jack Ma: Logistics is Where China’s Great Miracle Has Been

The boom of China’s e-commerce market, has been acknowledged by people around the world. From ecommerce platform giants like Taobao to Tmall, China takes up to one fifth of the world’s digital sales share in recent years.

While online businesses gets all the glitz and glamor, Alibaba founder Jack Ma pointed out that the real advances in China have been in logistics, not ecommerce.

“You can talk about the miracle of ecommerce in China or in the world,” he said, “but the logistics industry is where China’s real great miracle has been over the past decade.”

This is very true as the logistics industry have been responsible for the supply chain and major movement of goods. In short, non of the online success would have been possible without anyone dedicating effort into all the background work.

“You are the greatest heroes in my heart,” Ma went on to say at a recent Global Logistics Summit.

His words won’t be going in vain as China’s logistics industry continues to scale. In 2012, China surpassed the United States as the largest logistics market on earth. Current data also forecast China’s ecommerce sales to top USA at 33.9%  to 19.3% respectively.

The Chinese could be well on their way to gold as most online businesses have now outsourced their needs to them. With the influx of people adopting the drop-shipping system, China’s logistical empire have once again proven its capacity at handling huge scales of manufacturing and supply chain management.

The Future of Logistics

Having recently established Cainiao, a smart logistic network affiliated to the Alibaba Group, it seems that Jack Ma have his eyes on the future of logistics:

“The past ten years of express delivery development has shown off the power of startups, of people, and of innovation,” Ma said. “Going forward, we need to place more emphasis on the power of technology and data, the power of integration, and the power of sharing.”

Being invested in technology is the next step to growing the logistics industry further. As China now handles up to 100 million packages per day, technology is going to be the factor to meet Ma’s forecasted amount of a billion packages daily – by 2025

Indeed as we speak, logistics company all around the world are already integrating cutting-edge systems into their operations.

With the future of supply chain looking to be glammed up, everyone involved in the industry should keep their eyes peeled. Whether you’re working in this sector or simply a receiver of goods, logistics is moving onwards to give everyone a pleasant experience.

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