---
title: "In-Depth: In the New Retail Era, Where Is the Way Out for Urban Logistics and Distribution?"
description: "With the rapid development of the internet industry, the logistics industry has also entered a period of explosive growth. As the next blue ocean for logistics development, urban logistics and distribution is being proactively planned by logistics companies, platforms, and suppliers to secure future initiative. We are in a rapidly changing logistics world, where mobile internet, 'Internet + Logistics', new retail, e-commerce self-built logistics, supply chain integration, social e-commerce, and last-mile innovations are reshaping the urban logistics and distribution industry."
author: "New Distribution"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
telephone: "+8615854817671"
published: "2018-09-16"
language: "en"
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# In-Depth: In the New Retail Era, Where Is the Way Out for Urban Logistics and Distribution?

> With the rapid development of the internet industry, the logistics industry has also entered a period of explosive growth. As the next blue ocean for logistics development, urban logistics and distribution is being proactively planned by logistics companies, platforms, and suppliers to secure future initiative. We are in a rapidly changing logistics world, where mobile internet, 'Internet + Logistics', new retail, e-commerce self-built logistics, supply chain integration, social e-commerce, and last-mile innovations are reshaping the urban logistics and distribution industry.

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With the rapid development of the internet industry, the logistics industry has also entered a period of explosive growth. As the next blue ocean for logistics development, urban logistics and distribution is being proactively planned by logistics companies, platforms, and suppliers to secure future initiative.
We are in a rapidly changing logistics world. The rapid development of mobile internet, the comprehensive reshuffling of 'Internet + Logistics', the advent of new retail, the full opening of e-commerce self-built logistics, the deep integration of supply chains driven by omni-channel, the full explosion of social e-commerce and micro e-commerce, the flourishing of new business models in the last mile, and changes in customers' demands for in-depth services have all reshaped the urban logistics and distribution industry.
In the future, urban logistics and distribution will be an important foundation for social security. As a supporting force, the prospects for urban distribution logistics are bound to be broad.
The future is also a digital era, which requires relying on big data for decision support, deeply integrating technology, competing with technology and wisdom, and striving to improve efficiency and reduce costs is our eternal topic.
Below, we comprehensively analyze the development trends of urban logistics and distribution from the following three aspects, hoping to inspire friends in the industry.
1
Face the Problems Directly
Urban distribution is both the middle and terminal of logistics activities. Its radiation range extends from inter-city connectivity to communities and villages, making it a concentration point of urban circulation contradictions.
The urban distribution system consists of three main bodies: the urban distribution network system, the urban distribution operation system, and the urban distribution information system, as well as the external environment (demand, policy).
Urban joint distribution is a service model based on the socialization and third-party operation of urban distribution business, and on spatial integration and information sharing. It involves delivering goods in the same demand area to unified service units' vehicles for unified loading, transportation, and delivery to the point.
It can be simply summarized as 'four sharings and one same': sharing warehouse distribution centers, sharing distribution vehicles, sharing network information, sharing network resources, and same-route distribution.
It needs to go through the development process of self-operated distribution, third-party distribution, unified and centralized distribution, industry joint distribution, and finally regional joint distribution. Urban distribution will form a strategic pattern of 'shared warehouses, shared routes'.
(1) Key Points of Urban Joint Distribution
> The issue of releasing and cultivating urban joint distribution demand
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> The issue of improving urban distribution centers and terminal outlets
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> The issue of supply chain interest mechanisms and information sharing
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> The issue of rational planning of urban distribution spatial networks
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> The issue of how urban joint distribution integrates with current urban-rural circulation models.
(2) Difficulties of Urban Joint Distribution
Urban distribution companies not only face pressure from business scale but also bear huge cost pressures, specifically reflected in ten difficulties:
> Difficulty in applying information systems
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> Difficulty in spatial aggregation of enterprises
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> Difficulty in socialization and separation
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> Difficulty in making profits for distribution companies
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> Difficulty in urban distribution operations
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> Difficulty in landing distribution centers
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> Difficulty in integrating industry resources
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> Difficulty in establishing trust mechanisms
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> Difficulty in improvement and optimization
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> Difficulty in management promotion.
2
Trend Changes
(1) The Era of Urban Joint Distribution Is Coming
(2) Changes Brought by Industry 4.0 (INDUSTRIE 4.0) to Urban Distribution Logistics
Industry 4.0 drives the C2B model of supply chain operations: user demand-driven from fan economy, factory customization, channel flattening, fast logistics networks, big data-driven, and supported by artificial intelligence.
(3) Logistics Distribution Volume Will Change
The distribution volume for individual consumers will increase year by year, the proportion of toC distribution will rise annually, and the toB distribution volume will show a trend of shifting to toC.
(4) Requirements for Urban Distribution Will Be Higher
New retail, new distribution, and the omni-channel era of online and offline require new logistics models for urban distribution characterized by 'multiple varieties, small batches, multiple batches, and short cycles', with flexible organization and efficient distribution, ultimately achieving timeliness, accuracy, and good service experience.
(5) The Service Scope of Urban Distribution Expands and Becomes More Valuable
In the future new retail business era, the core value of logistics distribution companies is reflected in: whoever is closer to users has more commercial value; whoever accumulates more logistics operation data has greater commercial value; whoever provides more value-added services for supply chain operations.
In the future, the value of a logistics distribution company is not that the more assets, the better, but that the stronger the operational capability, the better.
(6) Urban Distribution Networks Gradually Improve
(7) In the Future, Urban Distribution Companies Will Be in a Chain Leader Position
Urban distribution and intercity trunk lines will be deeply integrated. In the future, urban distribution companies will be in a chain leader position and an important part of core competitiveness. Urban distribution will go from separation from commerce to socialization and then to integration. Urban distribution companies are likely to become the chain leaders of regional commercial logistics chains.
(8) After Scale, Intensification Is the Most Core Competitiveness
From the perspective of joint distribution, the most important point is to return to the essence of the supply chain. In the end, competition will definitely lead to scale, then lean management. In the future, to become an integrator, one must work hard on lean management.
The era of competing with technology and management has arrived! Today's urban distribution system is like the stock market: a few companies make profits, and the small, scattered, and chaotic structure directly leads to 7 losses, 2 break-even, and 1 profit.
(9) County-Level Logistics Urban-Rural Distribution Demand Is Stable and Will Continue to Expand
> Policies to support agriculture and benefit farmers are gradually being implemented
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> The construction of rural modern circulation networks is accelerating
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> A multi-form, multi-channel agricultural product purchase and sales system has been initially established
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> Rural markets are becoming increasingly active
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> The scale of rural markets continues to expand
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> The upgrading of rural consumption structure is accelerating
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> The consumption level of rural markets continues to improve
(10) Urban Distribution Will Enter an Era of Oligopoly in the Future
(11) New Retail and New Distribution Become an Important Foundation for Social Security
New retail gives China's logistics industry a brand-new opportunity. Changing our thinking and innovating models is our top priority.
3
Opportunities and Business Opportunities
The future business is a combination of virtual business and physical business, a new business ecosystem that integrates traffic + scenario experience + transaction + logistics + supply chain + payment + finance + big data + intelligence...
In Ma Yun's words, in the future there will be no e-commerce, only new retail. New retail brings users and product R&D directly closer, and the supply chain undergoes comprehensive changes. Facing changes, whoever can seize the current opportunities and business opportunities and plan ahead will be the winner.
(1) Opportunities for Transformation and Development of Local Logistics and Commercial Enterprises
In the new retail era, new distribution has organically integrated logistics and community commerce. The last mile will have two changes: one is integration, and the other is upgrade. Integration is the integration of terminal logistics distribution; upgrade is the community commercial services derived from logistics services.
With the wave of the internet, traditional logistics enterprises either exhaust themselves in transformation or wait to die. Ultimately, the industry will enter an era of survival of the fittest, where the one who remains is the king.
(2) Development Opportunities for Regional Urban Distribution Platforms
(3) Opportunities to Obtain Key Urban Distribution Nodes
(4) Opportunities to Become Regional Urban Logistics Distribution Oligarchs
(5) Development Opportunities for Service Providers for Urban Logistics Distribution Enterprises
(6) County-Level Logistics Is the Explosion Point for Logistics Development in the Next Three Years
County-level logistics undertakes the key hub role of industrial goods going to the countryside and agricultural products entering the city. County-level logistics has become a blind spot ignored by major logistics enterprises.
County-level logistics is a coexistence of opportunities and challenges. In the future, the consumer population in counties and rural areas will reach over 900 million. With the development of the internet, rural internet consumption will fully explode. If commerce flows but logistics does not, all transactions cannot form a closed loop.
Therefore, the development and layout of county-level logistics have great opportunities. It is important to position for business, cater to policies, upgrade models, and leverage resources.
(7) New Urban Distribution Models Will Become the Direction
With the development of new retail, sharing economy, new energy vehicles, and financial leasing, I boldly predict that the next generation of urban distribution business models will be: cloud warehouse + joint distribution + new energy + financial leasing + sharing economy + entrepreneurship for all. Having warehousing, understanding commerce, being able to distribute, and doing finance will be the development direction of urban logistics and distribution.
The battle for urban logistics and distribution has already begun. Who can win the last mile? As the next blue ocean for logistics development, urban logistics and distribution is being proactively planned by logistics companies, platforms, and suppliers to secure future initiative.
Source: Logistics Products Network (products56)
**On October 23-24, during the Autumn Sugar and Wine Fair, the '2018 FMCG Urban Distribution Logistics Conference' hosted by New Distribution will be held.** At that time, we will invite industry big names, FMCG warehousing and distribution experts, and distributors who have transformed to unified warehousing and distribution platforms to discuss and answer questions about the future development trends of FMCG urban distribution logistics and practical cases of distributor transformation to unified warehousing and distribution, hoping to bring you different inspiration and thinking!
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