Freight transportation in mega-cities in emerging economy

Transcription

1 Freight transportation in mega-cities in emerging economy Dr. Lei Zhao Department of Industrial Engineering Tsinghua University, China 13 November, 2013

2 Logistics & E-commerce in China Lei Global Challenges in Smart Logistics,

3 Statistics of China Logistics Logistics in China grows rapidly. Freight transport in China ( ) (volume, billion ton) Logistics companies in China (2011) Highway Domestic Water Air Rank Company Revenue (billion RMB) 1 COSCO SINOTRANS & CSC China Shipping Xiamen Xiangyu China Railway Material SF Express Kerry Logistics Deppon Logistics DHL-SINOTRANS TNT FedEx 3.57 Source: Ministry of Transport of the People's Republic of China, Source: China Federation of Logistics & Purchasing, 2012 Lei Global Challenges in Smart Logistics,

4 Challenges Logistics cost as a percentage of GDP in China vs. US Warehouse overload China US 20% 15% 10% 5% 0% 2004 '05 '06 '07 '08 '09 '10 '11 '12 Rough handling Vehicle restriction in mega-cities Source: China National Development and Reform Commission & Council of Supply Chain Management Professionals, 2013; finance.ifeng.com; news.mydrivers.com; Lei Global Challenges in Smart Logistics,

5 E-Commerce in China Trading volume of online shopping (billion RMB) B2C online shopping market share ( ) # of online shopping customers (million) B2C online shopping market share (2012) Source: China Internet Network Information Center ( ) Source: China Electronic Commerce Research Center (2013) Lei Global Challenges in Smart Logistics,

6 Timeline of E-Commerce in China B2B platform C2C platform B2C platform Shopping search engine Cloud computing Online payment Group buying B2C platform B2C platform Online supermarket Online store of an offline retail chain Amazon purchased Joyo Source: Alibaba.com, amazon.cn, jd.com, yihaodian.com, suning.com, wiki.mbalib.com/wiki Lei Global Challenges in Smart Logistics,

7 Chinese Singles Day (Tmall & Taobao) Statistics on November 11, 2012 Trading volumes of Taobao & Tmall # of stand-alone online customers Packages from Tmall Billion RMB Million Million Predictions of November 11, 2013 Trading volumes of Taobao & Tmall Couriers Packages from Tmall Billion RMB Million Million Source: tmall.com, 2012, 2013; caijing.com.cn, October 18, 2013 Lei Global Challenges in Smart Logistics,

8 My Experience at JD.COM 15:08, Tracking, city view 10:15, Place order 15:08, Tracking, last mile 17:07, Delivered, last mile Lei Global Challenges in Smart Logistics,

9 China Smart Logistics Network (CSN) Shareholdings of Cainiao Network (5 billion RMB) Forchn, 10% Main Line Logistics Fosun, 10% Warehouse Construction Tianjin YUNDA, 1% ZTO, 1% YTO, 1% STO, 1% SF, 1% Express Delivery Yintai, 32% Inventory Management Alibaba, 43% IT & Finance Wuhan 1 st tier node 2 nd tier node Zhengzhou Shanghai Guangzhou Source: Sina Technology, May 28, 2013 Source: Beijing Business Today, October 14, 2013 Lei Global Challenges in Smart Logistics,

10 Resource Allocation Problem in Urban Freight Transportation Lei Global Challenges in Smart Logistics,

11 Resource Allocation Problem Allocate vehicles to regions allocation decision demand cost Algorithms Optimal Computing Budget Allocation (OCBA, Chen et al., 2000) Variance Proportion (VP, Rinott, 1978) Knowledge Gradient (KG, Frazier et al., 2008, Powell and Frazier, 2008) Lei Global Challenges in Smart Logistics,

12 Environmental & Economic Concerns in Time-Dependent Vehicle Routing Lei Global Challenges in Smart Logistics,

13 Background Congestion Uncertain delivery time Higher delivery cost More emission Time-dependency Peak hours vs. off-peak hours Spatial difference Expressways vs. arterials Smart routing Estimated traffic condition on Monday 6:00 am 8:00 am 10:00 am 12:00 pm Source: Lei Global Challenges in Smart Logistics,

14 Challenges & Potential Collaborations Lei Global Challenges in Smart Logistics,

15 Challenges and Potential Collaborations Fragmented (poorly regulated) logistics market High-speed growth vs. low-level management Fat tail: huge amount of small service providers Lack of reliable & cheap national carriers Urban freight transportation Economic, environmental, and social impacts Complexity in retail landscape and distributions Coordination & consolidation E.g., last 100 meters: Amazon.cn & FamilyMart, City 100 Sustainability Ever growing labor and fuel cost Tough & unhealthy competition Spoiled consumers Lei Global Challenges in Smart Logistics,

16 Acknowledgment Tom Van Woensel Chunyang Shi Jean-Philippe Gross Yixiao Huang Yue Tong Yixiao Huang Ruidian Song Mingchao Wan Minjie Wei Lei Global Challenges in Smart Logistics,

17 Thank you! Lei Global Challenges in Smart Logistics,

18 In case of further questions Please contact our NOST offices abroad directly, or through the central office: internet: telephone: ianetwerk@agentschapnl.nl or contact this speaker directly: internet: telephone: lzhao@tsinghua.edu.cn >> Focus on sustainability, innovation and international