DHL will improve its distribution centers in China to make more efficient use of delivery trucks across the country.
"Half-empty trucks line up outside shopping malls in downtown Shanghai everyday," said Victor Mok, DHL’s chief executive officer for North Asia. "The new shipment centers will have all the trucks fully loaded and return with as many packages as possible. The centers will cut down on the number of trucks stuck in the city."
The company held a forum in Shanghai to address the logistics issues faced by mega-cities. The move comes as worsening traffic jams have put pressure on the logistics industry to improve its efficiency.
Mui-Fong Goh, general manager of the Beijing branch of A.T. Kearney, a US-based consulting firm, said transportation fees currently account for 7 to 8% of the cost of consumer goods, English People’s Daily reported. That figure will grow as traffic worsens.
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