This time, it was Liu Qiandong who took the lead in applauding. He admired this point of Zhou Hao the most. He never did just one thing, but always did one thing while mobilizing many other things at the same time. He also took many possible factors into consideration to prevent all kinds of emergencies. This was Zhou Hao's ability.

Senior Brother Liu admired Zhou Hao very much and was secretly glad to be working with him.

After the applause, Liu Qiangdong said: "I am now full of confidence in the future of Taobao.com, but I am still worried about the delivery link. EMS's throughput capacity is too weak, and their delivery time is too slow. State-owned enterprises are slow in their work, and it often takes three to five days for Beijing to Shanghai to arrive. If our Taobao sellers continue to join, the number of buyers continues to increase, and the number of daily orders continues to increase, then the domestic logistics carrying capacity will be saturated. If the delivery time is too poor, it will definitely affect the development of Taobao.com."

Zhou Hao said: "EMS is only our current choice, but in the future, once e-commerce becomes popular, private express delivery companies will surely rise, and even a phenomenon of a hundred express delivery companies blooming, so I don't think logistics and distribution will be a problem."

Liu Qiangdong nodded: "Private enterprises have the keenest sense of profit, but what I want to say is, can we do our own logistics? If we can build our own logistics and serve Taobao, then the profit margin will definitely be guaranteed. Moreover, if we also control the logistics link, it can give buyers a better online shopping experience."

Zhou Hao asked: "Do you want to run your own logistics?"

"Yes!" Liu Qiangdong said firmly: "I think it is necessary to do logistics by ourselves. If we hand over logistics to a third party, we will inevitably face several serious problems: first, timeliness cannot be guaranteed; second, safety cannot be guaranteed; third, there is no service standard."

"Timeliness is the most critical part of logistics. If a buyer buys online, he expects to get the product from the moment he places the order and pays. But he needs to wait for the seller to ship the product, for the courier to pick it up, and then for the courier to turn around. When it finally arrives at the customer's location, it has to be arranged one level at a time. It may take at least a week. This is too slow. If the buyer needs to buy something within a week, he will consider the timeliness of online shopping and may end up having to buy it in a physical store."

"Safety is the core of logistics. Third-party couriers, even postal services, often have damaged goods. It is difficult for their employees to fulfill their duties and responsibilities for the goods. The courier companies have not tried hard to solve this problem. Moreover, each courier company has unfair terms for damaged goods. If online shopping develops in the future and logistics companies operate at high load, the proportion of damaged goods during transportation will definitely increase significantly."

"Service standards involve user experience. Only we can set unified requirements and provide training for their appearance and speech skills. It is difficult for third-party couriers to deliver goods to their doorsteps, provide smiling service and polite greetings."

Zhou Hao was a little surprised. From what Brother Liu said, it was obvious that he now had a very detailed understanding of the logistics system. Zhou Hao thought that he became interested in his own logistics only after he started the b2c platform JD.com. He didn't expect that Brother Liu was so persistent now.

In fact, having one's own logistics is an important part of e-commerce. Before Boss Ma started Taobao, he did not have the energy or financial resources to build his own logistics. Although he later said many times that he was not interested in logistics, his obsession with logistics was no less than that of Liu Qiangdong. Later, he planned to build Cainiao Logistics, which was enough to show his attitude towards logistics.

Zhou Hao was deeply touched by Brother Liu's persistence in own logistics.

Zhou Hao also understands that having one's own logistics system is definitely an important part of e-commerce.

JD's winning formula in the B2C field is its own logistics. JD's logistics is fast, has good service, and has a low damage rate. The reason for this is Brother Liu's control over its own logistics. JD's logistics has also solved the problems just raised by Brother Liu.

In its previous life, JD Logistics not only solved the problems of timeliness, service and safety, but more importantly, the cash on delivery service developed by JD based on its own logistics system was the core of JD's success back then. If it were not for its own logistics, cash on delivery would not be possible at all, especially the express delivery companies that collect payments on behalf of others, which also have the criticized security and settlement period issues.

Zhou Hao believed that Senior Brother Liu would build a logistics system of his own. As long as he was given enough resources, he would be able to build up logistics, just like he had prepared JD Logistics in his previous life.

But the logistics system is not an online product. For Zhou Hao, he has not found a shortcut to success. Moreover, there is a big difference between doing logistics based on Taobao and doing logistics based on JD.com.

If you want to do logistics based on a C2C system, you have to radiate across the country. Even if you don't cover the whole country at the beginning, you have to start with first- and second-tier cities. This is much more difficult. You have to hire a group of people to spread out in different places. It is a capital-intensive project.

Zhou Hao is not afraid of heavy assets. His current income is relatively healthy, so it should be no problem to use it to support logistics. But the key is that the speed is too slow. People have to be recruited one by one, cars have to be purchased one by one, and business outlets have to be built one by one. It is too slow.

Zhou Hao asked Liu Qiangdong: "If you really want to do your own logistics, how do you plan to start?"

Liu Qiangdong said: "I want to acquire a logistics company first. If the acquisition doesn't work, we will start with first-tier cities and build four points in Beijing, Shanghai, Guangzhou and Shenzhen, mainly doing logistics between these four cities."

Liu Qiangdong added: "From Beijing to Shanghai, truck transportation takes about 17 or 8 hours, and from Shanghai to Shenzhen it takes about the same amount of time. Guangzhou and Shenzhen are close, so we can basically ensure that goods from Beijing to Shanghai are transported and delivered within 30 hours, and the entire process from collection to delivery is completed within 48 hours. The same is true from Shanghai to Guangzhou and Shenzhen. From Guangzhou to Shenzhen, the entire online shopping process can be completed within 24 hours, and from Beijing to Guangzhou and Shenzhen, it will not exceed 72 hours at most."

Zhou Hao said: "It sounds simple, but it is too idealistic. If we have few orders, our trucks cannot be fully loaded to ensure delivery time, and the effective load will be wasted, which will increase the cost. If we want to reduce costs, our trucks must be fully loaded or nearly fully loaded before departure, which will greatly affect delivery time. Moreover, for long-distance transportation such as from Beijing to Guangzhou, which is more than 2,000 kilometers, we must give priority to air transportation, followed by land transportation."

If you want to do express delivery, especially the best express delivery like SF Express, logistics is extremely important. SF Express started out with air cargo, but it took it several years of development before it had the money to rent its own cargo plane, and finally it changed from renting to buying and built its own fleet.

In the early days of SF Express, the belly cargo holds of domestic civil airliners became an important part of SF Express's rapid turnover. Zhou Hao estimated that no one should be paying attention to the belly cargo holds of civil airliners at the moment. If Liu Qiangdong really wanted to do logistics, his first suggestion to him would be to take over all the belly cargo holds of domestic airlines.

Liu Qiangdong smacked his lips, looked at Zhou Hao and said, "You're right. There are still many details of building our own logistics that I haven't figured out yet."

Zhou Hao comforted him, "It doesn't matter. This is a huge system in itself. There are many details that need to be carefully considered and repeatedly deliberated. No matter who does it, I'm afraid it will take a while to figure it out."

Zhou Hao went on to say, "If you are really interested in logistics, we can look at the existing express delivery companies on the market and pack and receive one. If we can't receive it, we can do it ourselves. As you said, we can start with first-tier cities, and then use big cities as points, and then spread to the surface little by little, and finally spread across the country."

Liu Qiangdong nodded and said, "We'll decide after Taobao goes online."

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