Samsung SDS signed a logistics service agreement with Guangzhou Post in China and announced that the company will enter the Chinese e-commerce logistics market.
This event was taken at the Guangzhou Post office with Samsung SDS Executive Vice President, HyungTae Kim (Smart Logistics Business Unit Leader) and Guangzhou Post General Manager, Wu Chang Quan present on November 21st.
Agreement ceremony at Guangzhou Post office
China’s e-commerce market has grown 47% last year, with Alibaba reaching 28 trillion won of daily revenue during the Single’s day event, and this year is expected to increase more than 27%.
Samsung SDS will provide an integrated Last Mile Delivery(LMD) service which is responsible for international air transportation to final customer delivery to Guangzhou Post.
Guangzhou has the largest annual air cargo traffic volume(7.3 million tons) in China, and is a logistics hub connecting Shenzhen and Hong Kong. Guangzhou is expected to see rapid growth in the field of e-commerce and Guangzhou Post is the number one company that covers 60% of overseas e-commerce logistics in China.
Samsung SDS Executive Vice President, HyungTae Kim (Smart Logistics Business Unit Leader) and Guangzhou Post General Manager, Wu Chang Quan
Samsung SDS will expand in the e-commerce logistics market by merging its Logistics BPO(Business Process Outsourcing) know-how of operating 52 offices in 33 countries, price competitiveness etc. with Guangzhou Post ‘s EMS(Express Mail Service) channels.
To secure e-commerce logistics capability, Samsung SDS completed building a system that perform tasks in all areas of e-commerce such as ordering, inventory management, and LMD etc. based on its own logistics platform (Cello). In addition, SDS is already providing services to Thai online shopping malls(Lazada and Buzzebees) utilizing this system.
Samsung SDS plans to expand its territory in the e-commerce logistics business in China, North America, Thailand, Malaysia etc.
Samsung SDS Executive Vice President, HyungTae Kim emphasized that “With this agreement, we will increase our competitiveness in overseas e-commerce logistics business in China and actively respond to the rapidly changing market environment.”
* Last Mile Delivery: LMD
Last mile delivery is defined as the movement of goods from a transportation hub to the final delivery destination.
* Logistics BPO(Business Process Outsourcing)
Logistics BPO refers to performing overall logistics duty through logistics expertise and system (platform).