The Logistics R&D Center began operating in August of 2008 after being launched with a 50 million RMB (USD$7.3 million) investment. It has a total floor area of 5,500 square meters, and a physical storage capacity of 25,000 cubic meters. The Warehouse Management System (WMS) of the center’s information processing network has access to ERP system end-data for upstream manufacturers as well as product order information from the DRP systems of downstream sales companies. Our WMS system classifies ordering information from DRP, thus speeding up the stocking and sub-packaging time for in-demand goods and coordinating delivery vehicles along their routes. The system serves the purpose of shortening stock turnover time and guaranteeing a balanced inventory and data processing capacity under any emergency situations that might arise due to fluctuating market demands.

The center is currently conducting research on ways to improve operating efficiency, to reduce operational errors and costs, and to master the processing of information pertaining to the distribution and allocation of goods. Mastering these areas is critical both socially and economically.

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