In the fierce competition, if you slow down, you will be surpassed by your opponent at any time.
In 2021, the daily order volume of Shentong will increase to 35 million; With three years of investment in production capacity of 10 billion yuan, the daily order volume of Shentong will increase to 50 million in 2022, and successfully cross the breakeven line; In 2023, the average daily business volume of Shentong in the peak season will exceed 60 million; In 2024, Shentong's average daily production capacity will be further increased to 75 million votes.
Doubling in three years, Shentong has accelerated its catch-up with the attitude of leading the Tongda Department in terms of growth rate for three consecutive years. Wang Wenbin, President of Shentong, said at an investor event a few days ago that not only the headquarters is improving efficiency in an all-round way, but also has a strong willingness to invest, and the strategic effect of the integration of the whole network is gradually emerging.
The troika went hand in hand
On April 23, Shentong Express Changsha Smart Logistics Industrial Park was officially opened, with a total investment of nearly 1 billion yuan, absorbing more than 1,000 regional jobs, and the hourly production capacity of the transfer center reached 250,000 pieces, with an average daily production capacity of more than 3 million pieces, an increase of more than 100% compared with the old site.
At the same time, the new Hefei transfer center with a maximum daily production capacity of more than 5 million pieces was put into operation, covering an area of 151 acres, equipped with the latest three-layer ultra-high-speed cross-belt sorter system, which can operate 200,000 pieces per hour.
Yibao.com found that this is only the tip of the iceberg of Shentong's continuous expansion of production capacity. Shentong said that in 2023, the normal throughput capacity will exceed 60 million orders per day by the end of the year, and the capacity of the entire network will enter an overall flat state from the general shortage three or four years ago.
In 2024, several hub-level transshipment centers will be delivered, including Nanjing, Hangzhou North, etc., with an average daily production capacity of 75 million tickets during the year.
In the face of industry competition that does not advance or retreat, Shentong has established the strategic goal of building a "quality and efficiency leading economic express delivery", firmly implemented a three-year 10-billion-level production capacity improvement project, and accelerated the pace with the leading enterprises. On the one hand, it quickly made up for the shortcomings in the past in terms of production capacity and throughput, improved the efficiency of transit operations, and on the other hand, it took a long-term view to lay the foundation for the coordinated development of the company's future business.
Regarding the price war that the industry is concerned about, the data shows that the unit price of the entire express delivery industry in 2023 will be 9.14 yuan, a decrease of 0.41 yuan, or 4.3%. From the perspective of major grain-producing cities, Yiwu and Guangzhou fell by 0.2 yuan and 0.5 yuan respectively, with a decline of more than 6%. Shentong said,
Shentong believes that from the current competitive environment, express companies also pay more attention to the construction of service quality and differentiation capabilities, pay more attention to the sustainable development of operations, and the focus of competition in the industry will gradually shift from price competition to value competition. Prices will remain relatively stable this year, but there are seasonal price fluctuations during the off-peak season.
When talking about paying more attention to profit or market share, Shentong said that among them, the orderly improvement of business scale is one of the key factors for future competitiveness, but the realization of profits is related to the long-term sustainable operation of enterprises, and service experience is the core competitiveness to enhance customer stickiness.
236 new sets of automation were installed in the outlets
With the gradual maturity of the governance of Tongda Rabbit companies, the competition of express delivery companies has sunk from the headquarters level to the first-line outlets, and a number of express executives also said that only by continuously empowering franchisees and making money from outlets, the whole network will be stable and efficient.
Yibao.com learned that compared with its competitors, Shentong's outlets have been large and slightly less flexible for many years. In this regard, since 2022, Shentong has fully launched the grid empowerment project, and then configured the corresponding area housekeeper sinking service outlets to further strengthen the link with the outlets, so that the policy of the headquarters can reach the end as soon as possible.
At present, the area steward helps the outlets locate problems, solve problems, improve services, and has formed trust with the outlets, and has played a positive role in the process of continuous breakthroughs and progress in the trinity of headquarters, provinces, and outlets.
Shentong said that at present, the confidence index of the development of first-line outlets has increased against the market, the profitability and capital situation of outlets have continued to improve, the willingness to invest is strong, and the outlets and headquarters can resonate at the same frequency. In 2023 alone, the operational capacity of the outlets will be greatly improved.
With the rapid increase in the number of orders, the density of delivery at the end of the network has increased, and the number of pick-up and delivery at the first-line outlets has increased, reaching the courier brother, the terminal outlets and the terminal e-commerce customers through digital platforms such as the Shenxinger APP and the outlet butler, so as to realize the digital and intelligent coverage of the whole link of express delivery. While the income of outlets has risen, the labor intensity of Xiaoge, including Xiaoge, has continued to decline.
In the future, Shentong will continue to promote the cost reduction and efficiency increase of the whole network, and promote the company's single ticket transfer cost to be reduced by more than the industry average. In terms of delivery costs, we will further improve the efficiency of delivery and reduce delivery costs by increasing the density of delivery, encouraging outlets to invest in unmanned and automated equipment.
At the same time, the total consideration for the transfer is about 70.74 million US dollars, and Shentong said that the smooth exit of foreign investment projects is in line with the company's overall development plan and actual business needs, and is conducive to optimizing the asset structure.