Full Truck Alliance (NYSE: YMM), a prominent digital freight platform in China, recently released its comprehensive “Industrial Clusters Report of Digital Logistics” on December 7. This marks a significant milestone as the report delves into the transformative landscape of the logistics industry from a digital perspective for the first time.
The primary goal of the report is to assist small and medium-sized enterprises (SMEs) in discovering new business opportunities. It also provides valuable insights into cargo trends for drivers, empowering them to efficiently handle orders and serve consignors.
Key findings from the report highlight the double-digit annual growth in China’s digital logistics penetration rate, with inland areas experiencing a 27% growth and more developed coastal regions a 15% growth over the past year. The report emphasizes the stair-stepped growth patterns in the development of industrial clusters of digital logistics, showcasing distinct characteristics in various provinces.
One notable revelation is the 4% reduction in the average transportation distance for digital logistics orders nationwide in the past year. Within most industrial clusters, this distance has shortened by up to 10%, indicating accelerated regional economic integration.
The report release conference in Beijing also featured panel discussions with executives and experts from the logistics industry. Discussions focused on comprehensively improving logistics efficiency to benefit society at large, cater to the diverse logistic needs of various industries, and support overall economic development.
Wang Yuchen, General Manager of Cold-Chain Logistics at Full Truck Alliance, highlighted how digitalized methods can dynamically track supply and demand fluctuations, balance them effectively, and significantly reduce transportation costs. The disintermediation nature of digital logistics platforms was emphasized as a means to enhance business operation transparency and reduce comprehensive logistic costs by more than 10%.
Industry testimonials further underscore the impact of digital logistics on cost reduction and efficiency improvement. Jiang Hao, General Manager of Shanghai Yihuang Wood Industry Co., Ltd., shared a 30% decrease in logistics costs and a 60% increase in efficiency after embracing digital logistics.
He Zhilin, founder of Guangdong Chuanwei Dongpin, highlighted the positive outcomes of digitalization in business management, operation, and logistics, contributing to a 100% CAGR growth in earnings and a record revenue of 6 billion in 2023.
Leaders in the industry emphasize that digital logistics platforms go beyond technological advancements; they serve as catalysts for cost savings and increased efficiency across various sectors. According to Zhou Zhicheng, director of the research institute of China Federation of Logistics and Purchasing, and secretary-general of its Sub Committee of Freight Industry, digital freight platforms can explore more industrial use cases, providing tools and solutions to help businesses reduce costs and increase efficiency.
With over a decade of innovation, Full Truck Alliance’s extensive reach spans over 300 cities, connecting 3.79 million active drivers with over 2 million consignors monthly. The platform enhances logistics efficiency through intelligent cargo-truck matching and streamlined online transactions, offering flexible and diverse shipping solutions for SMEs while enabling businesses to integrate and manage complex transport resources.