Lv Benfu, a professor at the Graduate School of China Academy of Sciences, mentioned in Business Model of Network Economy that logistics, information flow and capital flow constitute the current economic model of e-commerce. With the development of the Internet, e-commerce began to "devour" traditional industries, and logistics held an important economic lifeline in e-commerce. No matter how powerful e-commerce was, it could only be "a clever woman can't cook without rice" without the support of a strong logistics system, and the role of logistics became more and more powerful.

Contrary to the growing demand of e-commerce for logistics, the traditional logistics industry is gradually being eliminated in the face of the strong demand of e-commerce logistics. Many traditional logistics enterprises are reflecting that "logistics is becoming more and more difficult now". Large enterprises have fixed logistics companies to cooperate with them. When choosing logistics companies, small enterprises will bargain to the death and pull dozens of tons of goods, only earning two or three hundred yuan. If the labor costs are excluded, it is almost a loss state.

E-commerce has caused many traditional enterprises to be "submerged" in the trend of e-commerce, including manufacturing, textile and other industries, and the logistics industry associated with these traditional industries has also been hit, which is one of the reasons why logistics is becoming more and more difficult to do.

According to manager Lin of Kunshan Jiali Freight Co., Ltd., although their company is also one of the national AAA logistics enterprises, it has a good strength in Kunshan. However, in the face of the vicious competition of endless "price war" in the market, the turnover of the company has also been affected, mainly reflected in the customers of small and medium-sized enterprises. In the process of choosing a third-party logistics company, they will pay too much attention to the price issue, and the only criterion they choose is the price. As for the security issues in the logistics process, the company's qualifications, services and so on, the owners of small and medium-sized enterprises will not pay too much attention.

Then, in the face of this naked price competition, is there any other way of competition in the logistics industry?

Manager Lin of Kunshan Jiali Freight Co., Ltd. mentioned that it is difficult for logistics enterprises to obtain long-term partners if they only rely on this bottomless price war. Joining this endless war will eventually accelerate the demise of traditional logistics industry.

If traditional logistics industry wants to avoid this price war, the first thing to do is brand and service. The most basic principle of logistics and transportation is to ensure the safety of the main goods of the enterprise. Of course, it can't be said that there is no safety at a low price, but the risk of such a low price is obviously higher than the market price. If the enterprise owner pays attention to the price and ignores its safety, it will easily lose more than the gain.

The characteristics of the brand are obvious in this price war. How about a logistics company's service? Basically, it will form its own brand with good reputation in the local area. Even if its price is more expensive than other logistics companies, customers will still choose it, because the safety can be guaranteed, which is the biggest dependence of Kunshan Jiali Freight Co., Ltd. in Kunshan area for many years.

Another aspect is logistics equipment and logistics informatization. In the face of the renewal of logistics equipment and the reform of logistics informatization, many traditional logistics enterprises still use traditional logistics equipment, and the construction of logistics informatization is completely out of step. This is the same as the era of traditional enterprises and the Internet era. Many experts pointed out that there is no such thing as traditional enterprises in the future, and all enterprises will be Internet-based, which is a change of the trend of the times. Any enterprise that can't keep up with the pace may be eliminated. The logistics industry is also facing this situation. Traditional logistics enterprises need to keep up with the trend in terms of equipment upgrading and informatization, so as not to "fall behind".

Manager Lin of Kunshan Jiali Freight Co., Ltd. also mentioned that in the future, in the process of logistics informatization construction, the company will gradually increase its investment and support for logistics informatization construction and gradually strengthen its competitiveness to avoid this naked price war competition.