Harnessing new sectors

"At the core of the internet approach is big data analysis, which functions as the brain of the logistics system," Li said.

Big data analysis is valuable in its potential to foresee industrial growth and slowdowns, and can facilitate risk management, he said.

Higher efficiency is just one of the benefits of online approaches to the logistics business.

"A more reliable way of payment is also urgently needed for all parties," Zhou said.

Traditionally, logistics companies often take money from those receiving the cargo, after the delivery is completed.

"A lot of money is kept by the logistics companies, and sometimes the drivers, as the cargo receivers want to make sure the items were not damaged after the long journey," Zhou said.

In some cases, logistics company bosses have even run away with the money that should have been returned to the cargo suppliers, after the failure of their businesses.

To avoid this situation, in August this year, Transfar launched its third-party payment platform Transfar Pay and launched its marketing efforts in Henan province.

As an essential part of the company's internet logistics approach, Transfar Pay connects goods producers, distribution centers and cargo receivers to ensure reliable cash flow.

The payment goes to Transfar's special bank account, supervised by the country's top financial authorities, according to Zhou.

The payment business has so far been expanded to Anhui, Shaanxi, Shandong, Jilin, Liaoning and Heilongjiang provinces.

Liu Yukun in Beijing contributed to this story.

(China Daily 12/04/2017 page19)