2019 LogiMAT Logistics Keyword Roundup

As 2019 draws to a close, heralding the imminent arrival of the 2020s, we look back on a year marked by significant fluctuations within China's logistics equipment sector, where opportunities and challenges coexisted. Amidst this rapidly evolving landscape, LogiMAT's internal logistics solutions...SolutionsThe Process Management Exhibition as China's LogisticsIndustryAs a communication platform, we have witnessed industry transformations together and grown alongside the sector. Let us now briefly review 2019 to see how LogiMAT has adapted to industry developments within the evolving logistics landscape of that year.

Strategic breakthrough

2019 marked the dawn of China's smart logistics era, as advanced technologies including 5G, AI and the Internet of Things ushered in the Logistics 4.0 chapter. Major logistics and e-commerce enterprises have consequently embarked upon...Supply chainThe upgrading or restructuring of logistics systems has made the Yangtze River Delta the preferred pilot region for reform initiatives. During the Double Eleven shopping festival, Jiangsu, Zhejiang and Shanghai recorded the highest transaction volumes nationwide. Coupled with the region's advantages in trade, port facilities and other sectors, these factors collectively establish the Yangtze River Delta as the birthplace of smart logistics. As the core of this region, Shanghai has consequently emerged as the central hub where logistics technologies converge.

To penetrate the heart of the market, LogiMAT has strategically upgraded its four-year-old Chinese exhibition, LogiMAT China, relocating from Nanjing to Shanghai. This move enhances its reach across the East China market while maintaining the proven formula of combining high-calibre solution showcases with premium forums in Shanghai – China's economic and R&D hub. This enables industry professionals to source precisely the technical information and solutions they require. The resounding success of the 2019 event delivered substantial benefits for both exhibitors and attendees. For the foreseeable future, LogiMAT China will continue to develop with Shanghai as its central hub, focusing on the heart of China's logistics sector, extending its reach across the Yangtze River Delta and gradually expanding nationwide.

Supply Chain Integration

The ever-changing market demands and the implementation of new technologies have prompted major logistics providers such as Suning Logistics, SF Express, Deppon Logistics, and Cainiao to leverage technological innovation and actively integrate full-supply-chain resources to adapt to unpredictable market requirements. Major retailers including Taobao, JD.com, Suning, Vipshop, and Walmart have also optimised and upgraded their respective warehousing and logistics management systems. SF Express completed acquisitions of both the China cold chain operations of US-based Shihua and the China supply chain operations of Deutsche Post DHL Group, effectively enhancing its supply chain footprint. Zhongtong and Deppon have invested heavily in establishing dedicated supply chain companies to accelerate the transformation of their own systems. Walmart plans to invest approximately 8 billion yuan in upgrading its logistics supply chain in China, involving the construction or enhancement of over ten distribution centres. Suning has established seven major product lines—warehousing and distribution, express delivery, freight transport, cold chain, cross-border logistics, instant delivery, and after-sales services—emerging as a leader in supply chain transformation.

These transformations necessitate enterprises to continually upgrade their technologies and develop more rational solutions tailored to varying external conditions. Concurrently, it is essential to establish a more open and responsive communication system linking logistics equipment and warehousing with transport services and end-users, thereby achieving seamless integration between internal and external logistics. The collaboration between LogiMAT and tlC, representing the two most crucial platforms for internal and external logistics within the supply chain, has thus emerged as a natural progression. LogiMAT stands as the premier international exhibition platform for internal logistics, while the transport logistic series by Messe München represents the global benchmark for logistics and transport industry exhibitions. The two parties have pioneered a strategic partnership in China, co-locating their events to integrate enterprises, systems, equipment, technologies, and even demand across all supply chain segments – including logistics equipment, transport, cold chain, and end-user applications – within a single exhibition space. This creates China's only exhibition spanning the entire logistics value chain, providing upstream and downstream enterprises seeking supply chain transformation with both a procurement platform for equipment and transport solutions, and an open forum for exchanging intelligent supply chain solutions.

Keep pace with the capital tide and intensify recruitment efforts for high-tech logistics equipment enterprises.

In 2019, as logistics enterprises underwent consolidation, restructuring and concentrated listings, industry financing activity continued to cool, with regional markets experiencing a downturn. Capital gradually shifted focus towards new directions, with logistics equipment firms emerging as a new force. Particularly favoured by capital markets were high-tech logistics equipment enterprises possessing core technological capabilities. According to reports from Yiyou, during the first half of 2019, the logistics equipment sector saw 13 financing deals, the majority concentrated on companies specialising in robotic applications within warehouses.

LogiMAT China has also noted this shift, placing greater emphasis on showcasing high-tech logistics equipment enterprises with independent R&D capabilities during exhibitor recruitment. This is particularly evident within the AGV sector. Numerous LogiMAT China exhibitors feature prominently in the 2019 rankings for logistics equipment enterprise funding. Geek+ announced the successful completion of its Series C1 financing round in July 2019, securing over US$150 million; Beijing Megvii Technology Co., Ltd. announced the completion of the second phase of its Series D equity financing in May, bringing the total Series D funding to US$750 million; Lingdong Technology publicly announced the completion of a 100 million yuan Series B financing in March this year, followed by the announcement of its Series B1 financing in August; Muxing Intelligence completed its Series A financing in January; Zhongding Integration secured a strategic investment of 102 million yuan in May.

Regarding the 2020 exhibition's related activities, LogiMAT China intends to invite capital sector experts to analyse and elaborate on the latest hot topics and case studies in supply chain finance. Concurrently, it will invite senior executives from enterprises with successful financing experience to share insights on how to identify the right market niche, expand strategic directions, and capitalise on the wave of investment through effective methods and strategies.

Showcasing cutting-edge technologies in the internal logistics industry

The survival and development of logistics equipment enterprises cannot overlook technological innovation. Quoting Professor Wu Qingyi, founder of the journal Logistics Technology and Application and a renowned Chinese logistics expert, from his address at the recently concluded “2019 Global Logistics Equipment Industry Development Conference and 2019 Global Logistics Equipment Entrepreneurs Annual Meeting”: “2019 may well be regarded as the inaugural year for the advancement of 5G and blockchain technologies. The convergence of the virtual and physical realms warrants thorough exploration. While future applications remain unpredictable, we must keep pace with the times, actively researching the implementation of 5G and blockchain technologies within the logistics equipment sector to identify new avenues for corporate development.”

As an exhibition centred on showcasing cutting-edge technologies within the internal logistics industry, LogiMAT China naturally aligns its exhibition themes with these latest innovations. Numerous renowned enterprises will present their newest 5G-based products and solutions during the 2020 event. Furthermore, Professor Dr Michael Henke, Director of the Fraunhofer Institute for Material Flow and Logistics (IML) and Chair of Commercial Logistics (LFO), has been confirmed as one of the keynote speakers for the main forum. A leading authority on blockchain applications within logistics, he will deliver a keynote address on blockchain during the 2020 exhibition, sharing insights into its practical commercial implementations.

Focusing on solutions to drive Logistics 4.0

Progress in Industry 4.0 has given rise to the concept of Logistics 4.0, thereby elevating demands upon the logistics equipment industry. Requirements for intelligent, networked, and flexible logistics equipment products have intensified. Business models are shifting from manufacturing-centric to service-centric approaches, while technological pathways evolve from intelligent products plus intelligent services towards integrating the entire lifecycle. Production methods advance from establishing smart factories and achieving highly customised manufacturing towards platform development – building digital platforms that foster high-level interaction with customers and suppliers. This signifies that in the Logistics 4.0 era, logistics equipment enterprises can no longer content themselves with merely supplying technologically advanced products. They must adopt a service-centric approach, capable of delivering appropriately customised solutions to clients.

LogiMAT distinguishes itself from most trade fairs through its forward-thinking approach to solution capabilities. Both exhibitor displays and forum themes revolve around delivering industry-specific solutions. Internal logistics constitutes a systematic operational environment where every role must adapt to one another to achieve the required solution. Consequently, LogiMAT requires exhibitors to move beyond merely stating what their products are and what they can do. Instead, they must first understand visitors' current production realities and specific requirements. Based on these needs, they should present customised products or technical solutions, demonstrating how these address the requirements. Alternatively, they should proactively reveal how certain solutions could yield currently unforeseen benefits or resolve potential future issues, thereby guiding visitors through the solution-driven approach. The LogiMAT forums serve as another platform for presenting solutions. Through forward-thinking analyses by technological pioneers and application case studies from industry-leading end-users, attendees gain clearer insights into how these solutions align with their own logistics requirements. For LogiMAT visitors, the exhibition delivers more than product information; it provides a comprehensive, well-defined solution package.

LogiMAT China focuses on several industries where advanced intralogistics technologies are currently most prevalent: automotive, food and beverage, home furnishings, footwear and apparel, retail, daily chemicals, and pharmaceuticals. Both exhibitor solutions and industry forum themes are centred around these key sectors. Forum speakers include representatives from JAC Motors, Schaeffler, Cargill, Anheuser-Busch, Red Star Macalline, RuiLi, Sinopharm, Sanofi Pasteur, JD.com, Secoo, Benlai Life, Haier, China Mobile, and Lenovo. These industry leaders from both logistics production and application sectors engaged in vigorous discussions and shared insights on innovative technologies driving rapid sectoral advancement. Topics included supply chain innovation and upgrading, optimising logistics centre development, logistics visualisation technology, and warehouse empowerment. The content was highly practical, achieving an excellent demonstration effect.

International exchange platform: inviting in and reaching out

LogiMAT, as Europe's premier barometer for the internal logistics industry, serves as the preferred platform each March for global leaders to unveil new technologies and showcase innovative achievements. These resources are subsequently disseminated to the Chinese exhibition, where the proportion of international exhibitor brands at the 2019 China event reached 48%. Notable participants included Jungheinrich, Crown, Weichai, Daifuku, Kaup, Mias, Cadias, Konecranes, Cognex, Keyence, Kona, Legiten, Faller, Hoffmann, Legiten, Bowei, Wanzhou, Apollo Weitish, Hubitex, TVH, Miba, Amba Flex, Enosun, Konico, Eceo, Peakboard, Metroplan, Eslog, Bespoon, EVTD, and others. This proportion significantly exceeds that of other domestic exhibitions in the same sector. These enterprises bring internationally leading technological product solutions to China, thereby expanding their own business markets while fostering in-depth exchanges with Chinese counterparts and buyers, thereby advancing the development of China's logistics equipment technology.

LogiMAT is a globally oriented exhibition series that also aims to provide greater assistance to more Chinese enterprises in expanding overseas and securing increased international business. The proportion of Chinese exhibitors at German trade fairs has increased year on year. Registrations for the forthcoming 2020 event have once again reached a historic high, with over 90 Chinese enterprises set to participate. Concurrently, the organisers will host the “Smart Manufacturing Connects Life” – LogiMAT 2020 Business Delegation, inviting more Chinese end-user buyers to visit the exhibition in Germany and tour renowned intelligent manufacturing facilities.Manufacturing plantUncover the secrets of the world's most advanced internal logistics technologies, reveal the intelligent manufacturing techniques employed by leading enterprises, and guide the transformation and upgrading strategies for your own production and planning.

LogiMAT completed its acquisition of the Intelligent Warehouse exhibition in Thailand in May 2019. The inaugural LogiMAT Thailand exhibition will be held2020The event will be held at Thailand's IMPACT Exhibition Centre from 13 to 15 May, positioning itself as Southeast Asia's premier internal logistics exhibition. Amidst the current wave of manufacturing relocation, it presents enterprises with advantageous opportunities to expand into the Southeast Asian market.

Wang Jixiang, Vice President of the China Warehousing and Distribution Association, forecasts that market demand for China's logistics equipment industry will maintain a growth rate of approximately 20% in 2020. Within this, intelligent logistics equipment is projected to sustain a growth rate of around 25%. Key sectors driving this expansion include e-commerce logistics and express delivery, new retail, apparel, and emerging sectors.EnergyThe market demand for logistics technology equipment in sectors such as new manufacturing, home furnishings, and cold chain logistics continues to grow rapidly. LogiMAT China will also keep pace with market dynamics, providing a more specialised platform for exchanging and showcasing internal logistics technology solutions. We invite more end-users from application industries to visit and engage, enabling them to share their respective logistics perspectives, envision product innovation concepts, and thereby obtain the most suitable solutions on this open supply chain solutions exhibition platform.

(Some images sourced from the internet)