Huawei and SF Tech: Building the future of smart logistics

Logistics serves as the lifeblood of the real economy, linking production with consumption and bridging domestic with international trade. In recent years, improving the quality, efficiency, and cost-effectiveness of the logistics sector has been prioritized like never before. The emphasis is now on systematically boosting efficiency throughout the entire supply chain to achieve cost reduction goals.

Previously, efforts to cut logistics costs largely centered on storage and transportation, with a keen eye on inventory turnover cycles, production capacity, and operational efficiency. The current modus operandi revolves around the extensive integration of industries and logistics. This deep dive into every supply chain process aims to precisely align upstream supply with downstream demand, enhance supply chain collaboration, converge infrastructure networks, and elevate digital and intelligent capabilities. The more these elements are integrated, the greater the improvements in efficiency and experience.

Robust digital and intelligent infrastructure is the key

The logistics industry is a long-standing sector marked by its complex chain, significant reliance on in-person staff and equipment, and a consequently low level of digital and intelligent maturity Within the supply chain context, going digital and intelligent is indeed a complex endeavor. It bridges every process from initial production to final consumption. Each process requires the real-time collection, transmission, and analysis of data, and importantly, these processes must be seamlessly connected. The supply chain typically requires cooperation among upstream and downstream enterprises, logistics service providers, and customers. Hence, it is vital to remove information barriers and implement data sharing and collaboration.

Another key issue lies in how to utilize this data to inform operational decisions, increase efficiency, or reduce expenditures, thereby translating insights into tangible enhancements for the production system.

Logistics AI needs a strong foundation

Tang Kai, CMO of SF Technology

Tang Kai, the Chief Marketing Officer (CMO) of SF Technology, believes that the digital and intelligent transformation of logistics and supply chains is a complex and multi-layered process that can be challenging to accomplish. While AI can provide a significant boost, establishing a strong foundation is essential to fully leverage the widespread and deep applications of AI. This foundation is crucial for effectively utilizing intelligent technology to improve efficiency and service quality.

Supply chain activities produce an enormous volume of data, encompassing details like order streams, inventory levels, and shipping routes. Real-time analysis of this data is critical for quick decision-making, requiring substantial computing power and storage capacity. Insufficient processing capabilities would hinder the accuracy and timeliness of data analysis.

Tech Trinity: IoT, AI, and blockchain in sync

The digital and intelligent transformation of the supply chain depends on the combined use of IoT, AI, and blockchain, rather than relying on a single thing. Most importantly, these technologies must be smoothly integrated to create a collaborative system, allowing their benefits to be maximized and enhancing overall efficiency. For instance, data collected via IoT can be analyzed by AI, with blockchain ensuring data security and transparency.

Since the supply chain deals with core enterprise data, it is crucial to prioritize system security and stability. Enterprises must ensure their digital and intelligent infrastructure is highly available and can effectively protect sensitive information from potential threats. This is essential for maintaining customer trust and complying with relevant regulations.

The infrastructure-app layer power play

Leveraging Huawei's cutting-edge infrastructure, digital and intelligent logistics solutions are far better equipped than traditional methods to tackle recent industry pain points, and can deliver increased efficiency and cost savings for logistics enterprises. Throughout solution deployment, Huawei collaborates with logistics enterprises by utilizing its technical strengths, such as AI, cloud computing, and IoT, to offer a comprehensive set of proven solutions tailored for logistics scenarios. This approach not only yields substantial economic benefits but also heightens operational efficiency.

Tang Kai stated that digital and intelligent logistics and supply chains involve numerous nodes, links, and vast resources. It is challenging for a single enterprise to address all areas. As such, SF Technology and Huawei have established a strong synergy in industry digitalization and intelligence: Huawei concentrates on delivering digital and intelligent infrastructure, while SF Technology specializes in developing the application layer for digital and intelligent supply chains. This collaboration allows both companies to jointly offer end-to-end solutions to customers.

Tech-driven logistics: new forms of productivity for lower costs and higher efficiency

New forms of logistics productivity, known for their advanced technology, efficiency, and quality, seek to transform supply chains to be more swift, accurate, high-quality, and cost-effective.

New forms of productivity harness vast amounts of real-time data for intelligent management and decision-making support. Integrating big data and AI makes supply chain operations more intelligent and precise, allowing for global optimization and flexible responses to market changes. Simultaneously, digital and intelligent tools boost supply chain resilience, effectively coping with uncertainty and ensuring supply chain stability and reliability.

In addition, new forms of productivity allow for precise logistics resource allocation and seamless inter-link collaboration. This speeds up product turnover and enhances delivery precision, leading to a notable boost in supply chain efficiency.

Therefore, investing in technology is more than just an expense; it is a chance to cut costs and increase efficiency across all systems and algorithm models.

SF Tech’s blueprint: digitize, connect, optimize

As a leading enterprise in the express logistics industry, SF Technology has already positioned itself at the forefront of digital-intelligent transformation. Tang Kai noted that for many years, SF Technology has long been exploring how to better integrate technology with its business.

The goal is not only to tackle their internal supply chain hurdles but also to address customer concerns. With this aim in mind, SF Technology's approach to implementing logistics technology centers on three key steps:

First, element digitalization. It's akin to affixing a digital label to every logistical element (people, vehicles, goods, and yards) to enable the data-driven management of countless couriers, vehicles, aircraft, and transit centers. By employing technologies like sensors and Radio Frequency Identification (RFID), it is possible to instantly know where goods are, the status of vehicles, and what's in the warehouse. This ensures all information can be identified and managed by the system, laying the groundwork for subsequent operations.

Second, link digitalization. SF Technology needs to establish flawless connectivity across all logistics processes, from receiving and transfer to transportation and delivery. This ensures smooth information flow between each process and connects digital nodes from start to finish. It is similar to creating a "digital highway" for swift data transfer between departments, enhancing transparency and efficiency throughout the process.

Third, scenario digitalization. SF Technology will further apply intelligent technologies to specific business scenarios in sectors like industrial manufacturing, fast fashion, and alcoholic beverages. For instance, an integrated platform can help customers understand user distribution, warehouse distribution, and Stock Keeping Unit (SKU) characteristics. It empowers them to develop more effective warehouse network plans, which enhances the supply chain's flexibility, efficiency, and resilience. This involves a wide range of aspects, such as warehouse network planning, demand forecasting, route planning, dynamic replenishment, and automated warehousing operations.

Forming seamless connections

SF Technology will embark on a digital and intelligent journey by following the three-step approach. First, the company will isolate and digitally transform key elements to help upgrade the foundational elements using digital and intelligent technologies. Next, it will seamlessly connect these digital and intelligent elements to build an end-to-end advanced system for logistics and supply chains. Ultimately, this will deepen the application of digital and intelligent solutions in specific scenarios, pushing the logistics industry as a whole to embrace transformation.

In the realm of technology, having robust digital and intelligent infrastructure is crucial for supporting products and smart supply chain systems. Huawei has played a pivotal role in advancing the digital and intelligent transformation of supply chains.

Huawei leverages its powerful ICT infrastructure to facilitate a wide range of logistics services. Examples include real-time data analysis with cloud computing and big data platforms, along with device connectivity and goods detection enabled by 5G and IoT. The company's investment in AI like large models optimizes route planning and demand forecasting, slashes costs, and increases efficiency.

Huawei deeply applies an array of technologies to various logistics scenarios. For example, its AI visual recognition and IoT automate intelligent warehousing, 5G and edge computing optimize transportation routes, and digital twins simulate supply chain emergency responses. Beyond merely offering tools, Huawei works with enterprises to broaden their business scope, reduce costs, and improve operational performance.

1+N = 20% efficiency gains

Take Huawei's Smart Logistics 1+N Solution as an example. This solution connects numerous campuses through one logistics cloud to form a collaborative service network, integrate supply chain resources, and improve high value services. By working with industry partners, Huawei is creating intelligent logistics campuses that utilize smart technologies in every process, from campus entry and inbound storage to transportation. This has, for instance, boosted vehicle dispatching efficiency by 20% and cut labor expenses. Furthermore, a visual AI system has streamlined cold storage management, resulting in significant investment savings. Smart unified planning and operations across multiple campuses cut down on redundant construction expenses, halve the time required to launch new campuses, and comprehensively improve logistics efficiency and service quality.

Beyond tech: a new logistics ecosystem

The partnership between Huawei and SF Technology goes beyond providing technological support for the logistics industry. They have effectively utilized these technologies to tackle intricate challenges within the logistics and supply chain sectors. This has lowered labor costs, minimized resource wastage, and translated to a substantial increase in operational efficiency, driving the digital and intelligent transformation of the logistics sector as a whole.