In recent years, China's logistics and transportation industry has shown a situation of "more vehicles and less goods". How to solve the problems of growth and transformation is a common issue faced by the industry. Gao'an City in Jiangxi Province has a large transportation capacity and a large number of employees, and the logistics and transportation industry is its pillar industry. Faced with challenges, Gao'an City actively guides affiliated enterprises to transform into physical logistics enterprises. On the one hand, it seeks better sources of goods outward, and on the other hand, it introduces new driving forces inward to explore a higher quality development path.
Gao'an City, Jiangxi Province is one of the four major automobile transportation counties and cities in China, known as the "Capital of Logistics and Automobile Transportation". It has over 5000 logistics and automobile transportation companies, 150000 trucks, and a transportation capacity of 3.13 million tons. The annual revenue of the logistics and automobile transportation industry is 120 billion yuan, with 200000 employees.
In recent years, the development of the logistics and transportation industry has faced many changes: on the one hand, the homogenization competition in the national freight industry is severe, the industrial structure is single, and the problem of low industry management level is becoming increasingly prominent; On the other hand, due to the pressure of large logistics enterprise platforms, small and medium-sized enterprises lack modern logistics management concepts, technological development levels, product marketing capabilities, and other aspects, and their survival space is becoming increasingly limited. Faced with multiple difficulties, how can the traditional "logistics and transportation city" transform and upgrade, and find a way out?
Transforming towards physical logistics
"I spent over 400000 yuan on this Jiefang brand tractor, with a down payment of 100000 yuan and a loan of over 300000 yuan from the company." Chen Qizuo is a driver born in the 1980s. Recently, he took out a loan to buy a new car and affiliated with the company to complete the relevant procedures.
In order to repay the loan as soon as possible, Chen Qizuo eagerly searched for a source of goods as soon as he received the car. Ask acquaintances, make phone calls, check the internet, and as long as you calculate that you have money to earn, he will take on the job. Chen Qizuo said, "The current market is not very good, and if we individual transporters don't work hard, we won't be able to repay our loans on time."
In recent years, due to factors such as demand contraction, supply imbalance, and weakened expectations, both the long-distance trunk transportation market and the short distance engineering transportation market have shown a downward trend.
Zhou Peng, the person in charge of Taoyuan Logistics, said, "Drivers with cars but no stock have caused them to be unable to repay loans on time, making it difficult for affiliated companies to operate, and even facing the risk of capital chain breakage. Our company has almost gone bankrupt twice."
With the changes in the industry, traditional affiliation models are difficult to sustain, and exploring the path of transformation and upgrading is urgent. In order to guide the healthy and orderly development of the automobile transportation industry, Gao'an City visits enterprises and drivers, goes deep into the front line to collect problems, identifies the crux, and seeks ways for industrial transformation, upgrading, and growth.
In the eyes of local functional departments and logistics enterprises, transportation capacity is a prominent advantage of logistics and transportation in Gao'an City. Grasping the key point of goods supply and realizing the transformation from a purely affiliated enterprise to a physical logistics enterprise is the key for Gao'an City's logistics and transportation to seek breakthroughs.
The transformation of automobile transportation enterprises to physical logistics requires solving the problem of source of goods for drivers while accepting their services. Gao'an City provides "Caiyuan Credit Connect" financing support to enterprises that have successfully transformed, and provides a one-time reward of 100000 yuan to enterprises that have obtained national 4A and 5A logistics qualifications, encouraging automobile transportation enterprises to accelerate their transformation.
Gan Yue Five Star Transportation Co., Ltd. has been established for over 15 years and is affiliated with over 800 vehicles. Before the transformation, 70% of drivers were unable to repay their loans on time, with the highest amount owed reaching over 60 million yuan, making it difficult for the company to make progress.
With the support of favorable policies, the Gan Yue Five Stars have successfully transformed. The person in charge of the company, Wu Jianjun, introduced that after the transformation, they received financing support of 4 million yuan from the "Caiyuan Credit Connect" and formed a professional transportation team with over 100 tractors. With the continuous increase in business volume, many drivers have joined the team with cars, achieving daily freight and earning money.
Since joining Gan Yue Five Star Transportation Co., Ltd., driver Jin Xiaorong's transportation route has been fixed, and he no longer has to run around looking for sources of goods. Not long ago, he drove a truck from Xinyu City, Jiangxi Province, filled with mushrooms and set off for Guangzhou. After a 10 hour drive, the goods were safely delivered to their destination. After a brief rest, he transported fruits from Guangzhou to Nanchang. This round trip took 2 days and earned over 2000 yuan.
Chen Chuanqi, member of the Party Committee and Deputy Director of the Management Committee of Gao'an Freight Vehicle Industry Base, introduced that Taoyuan Logistics is a relatively successful case of transitioning from pure trailer logistics to physical logistics, and has obtained qualifications such as a national 4A level logistics company earlier. Currently, they are based on local sources of goods and are looking to sources outside of Jiangxi Province and even overseas.
Zhou Peng believes that a stable source of goods with high value can be considered a good source of goods. He will focus his cooperation on powerful large enterprises and lock the supply category into products in the new energy field. Thanks to the reputation accumulated by the company for more than 10 years, they have successfully bid for logistics and transportation projects of companies such as China Copper, China Aluminum, and Yuze New Energy. In 2023, the company's logistics revenue reached 112 million yuan, a year-on-year increase of 21.5%.
Hu Yanyun, Secretary of the Party Committee of the Management Committee of Gao'an Freight Vehicle Industry Base, said that the main businesses of affiliated companies in the past were certificate processing, loans, and insurance. After transitioning to physical logistics, automobile transportation companies take on specific cargo transportation business, with core businesses becoming cargo platform, settlement, and automotive aftermarket.
At present, more than 100 enterprises in Gao'an City have successfully transformed into physical logistics, and the number of logistics enterprises above 4A level accounts for 40% of Jiangxi Province. While vigorously guiding local enterprises to transform into physical logistics, we have also introduced leading domestic industry enterprises such as SF Express, Yimi Dida, Zhongtong, Baishi, and Kuayue to settle down, leveraging the "catfish effect" to activate the market and force more local enterprises to transform and upgrade.
At the same time, Gao'an City has also launched the construction of a 1600 acre warehousing and logistics industrial park, actively promoting traditional automobile transportation enterprises to expand their smart logistics, park warehousing, urban distribution, less than truckload express delivery and other businesses using their own transportation capacity advantages. Guangyun (Jiangxi) Company and Zhengguang Tongke Technology Company are also about to sign contracts to settle in the Gao'an warehousing and logistics industrial park for projects such as the Smart Logistics Highway Port, which have invested 1 billion yuan each.