SUNING LOGISTICS:

TRANSFORMATION OF RETAIL
LOGISTICS
SYNDICATE 2 - Operations Management
29121101 - Annisa Rahmah
29121155 - Marfa Eka Ridera
29121264 - Muhammad
29121290 - Mirza Khoerun Furqon Mulya
1. What reasons did Suning Logistics have for upgrading its logistics systems,
considering the online retail environment?

● Considering the online retail environment can help the company to identify consumption
habits, predict consumption trends, and guide production to provide diversified and
personalized services for consumers.
● Logistics distribution market is low, third-party logistics and distribution
development lag.
● Lack of understanding of the importance of site selection decision, simply consider
the storage rent, rarely combined with distribution costs, distribution efficiency and
quality of service to analyze.
2. What challenges did the new retail environment pose to Sunning Logistics
and how did the company handle them?

● Improving the Logistics System, The logistics quality and time limitation have become
an important part of the retailer's competition. By integrating the upstream and
downstream of the supply chain and combining the information resources, Suning has
established a perfect logistics network and is committed to creating a new era of
intelligent logistics.
● Suning Logistics integrated its online and offline businesses, uniformly conveying
orders to the distribution centre; for the small goods, Suning Logistics launched rapid
delivery, half-day delivery, and self-pickup to meet consumers’ demand for time-limited
distribution.
 3. Confronted with multi-scenario retail, how could Sunning Logistics
transform its retail logistics systems in the future?

Companies must look to the future and stay flexible as the market rapidly changes. For
example, while next-day service was novel just a few years ago, it is common today. How
future incumbents and disrupters will shape the market is still unknown. As such, serving
the customer of the future requires unprecedented agility—quickly adapting to changing
customer expectations.
 4. What development direction should Sunning Logistics choose to gain a
competitive advantage in the new retail era?

● Increase the distribution range and efficiency of terminal logistics to address the
diversified scenario of new retail by focusing on the improvement of the self-built
logistics system.
● Expand the warehouse supply chain and build a C2M (consumer-to-manufacturer)
logistics model with the help of the cloud platform, by further developing the upstream
and downstream self-built logistics systems.
● Strategic combination, the two heavyweights will establish an all-round online-to-offline
system encompassing e-commerce, logistics, aftersales services, marketing and big data.