Digital Transformation in the Logistics Industry: A Case Study of

Goodaymart Logistics

Ye Li

School of Economics and Management, Beijing Jiaotong University, Beijing, 100044, China

Keywords: Digital Transformation, Supply Chain Management, Logistics Industry, Goodaymart.

Abstract: Digital transformation offers new opportunities for supply chain stability and security. Especially in the

logistics industry, strengthening the construction of a digital supply chain system has become one of the

effective ways to promote the transformation and upgrading of the logistics industry. This study explores the

profound impact of digital transformation on the logistics industry, using Goodaymart Logistics as a case

study to analyze its digital strategies and implementation outcomes. Traditional logistics face challenges such

as delayed information transmission, inefficiency, and inadequate market responsiveness. Digital supply

chains, through technology platforms, digital solutions, and cloud service experiences, significantly improve

operational efficiency. This study finds that Goodaymart leverages technologies like IoT, cloud computing,

and AI to achieve full-process intelligent management in warehousing, transportation, and end-user services,

optimizing cost structures and enhancing customer satisfaction. This study summarizes Goodaymart’s

successful practices and proposes recommendations for advancing digital transformation in logistics and

supply chains, aiming to provide insights and references for the industry.

1 INTRODUCTION

One of the important links of the supply chain is

logistics, but the traditional logistics process has

obvious limitations. First, the logistics information of

traditional logistics is difficult to transmit and update

in real-time, which may lead to information delay and

wrong decisions, thus affecting the stability of the

entire supply chain (Ma, 2024). Secondly,

inefficiency is also a problem of traditional logistics.

Manual operation still occupies a large proportion of

traditional logistics links, resulting in process

inefficiency and cost increase. In addition, traditional

logistics is difficult to flexibly respond to random

changes in the market and laws, and traditional

processes cannot match the rapid adjustment of the

entire supply chain promptly. Problems such as cargo

retention, resource waste, and accounting

management difficulties are all challenges that the

traditional logistics industry needs to face. The

limitations of traditional logistics become more

obvious in the context of digital transformation, and

digital supply chains provide new opportunities to

solve these problems (Chu, 2023).

https://orcid.org/0009-0005-6011-694Х

Digital transformation is the process of improving

an entity through a combination of information,

computing, and communication that triggers

significant changes to its attributes (Vial, 2019). As a

global trend, digital transformation has gradually

become the core strategy of China’s economic

development, and most industries are formulating

digital transformation strategies in response to the

support of national policies (Cheng, 2024). Supply

chain systems and logistics are no exception. Digital

transformation refers to using emerging digital

technologies such as artificial intelligence, cloud

computing, blockchain, and the Internet of Things to

meet the needs of optimizing business operation

processes and improving user experience (Qi, 2024).

Digital transformation has become an inevitable trend

for the logistics industry to achieve more efficient and

intelligent operations. The deep integration of

emerging digital technology and supply chain (T.

Hazen, 2014) can promote the transformation and

upgrading of traditional supply chains to digital

embedded supply chains.

Digital transformation can not only promote

enterprise transformation and economic development

Li, Y.

Digital Transformation in the Logistics Industry: A Case Study of Goodaymart Logistics.

DOI: 10.5220/0013243900004558

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 1st International Conference on Modern Logistics and Supply Chain Management (MLSCM 2024), pages 151-155

ISBN: 978-989-758-738-2

151

but also profoundly impact enterprises' innovation

behavior (Yang, 2024). The Internet of Things (IoT)

and information physical systems (CPS) are the most

critical technologies in the development of digital

supply chains (Ben-Daya.M., 2017). The traditional

supply chain consists of dispersed physical

geographical facilities with physical transport links

between them (Baziyad, 2024). The shift from a

simple physical transport relationship to a digital

supply chain system can improve operational

efficiency in logistics, reduce operating costs, and

improve customer satisfaction.

Many of the benefits of digital supply chains still

need to be explored because the operational

management links within the logistics industry are

complex (Buyukozkan, 2018). Researchers in

academia and industry have systematically outlined

the advantages and challenges of digital supply

chains. However, there needs to be more attention to

the supply chain and logistics, and no concrete

example illustrates the relationship between the

digital supply chain and the logistics industry. This

paper will fill in the research gap.

The organizational structure of this paper is as

follows: The following part reviews and classifies

relevant articles and explains the development

background and process of the digital supply chain

through this literature review. The third part discusses

the definition, operation mode, and advantages of the

digital supply chain at Goodaymart Logistics through

concrete examples. The fourth part describes the

advantages and challenges of digitalization in supply

chain and logistics. The last part contains the

conclusion and suggestion.

2. CASE DESCRIPTION

Goodaymart is a logistics service provider committed

to becoming China's leading supply chain

management company. Since its establishment,

Goodaymart Supply Chain has focused on providing

supply chain management services for industrial

users, taking open and complex consumption supply

chains as the main scenario, and providing

omnichannel supply chain design and solutions with

inventory sharing as the core. In the context of the

development of the digital era, Gooday Supply chain

conforms to the development of digitalization, strives

to promote the construction of a digital supply chain

system, creates supply chain management solutions to

meet consumer needs through innovative service

models, helps the transformation of supply chain

management and operation to digital and intensive,

and promotes the high-quality development of

manufacturing industry with technology and

digitalization as the engine. Goodaymart Supply

Chain collaborates with Chinese universities to tackle

key core technologies of logistics and supply chain. It

researches and applies cutting-edge information

technologies such as the Internet of Things, cloud

computing, machine learning, and big data in logistics

and supply chain management, driving the industry to

develop intelligent logistics management and service.

The number of raw materials required by

manufacturing enterprises in the manufacturing

process is huge, so the corresponding number of

suppliers to provide raw materials is also large. At the

same time, the supply process is extremely complex,

and there are many pain points in the process, such as

data needing to be updated in time, information

needing to be more transparent, and so on. In this

context, the Good Day Supply chain creates the whole

process of interactive, visual, traceable VMI raw

material supply chain management solution by

breaking the situation of multi-party data closure to

accurately connect the upstream and downstream

needs of the industry, effectively reduce supplier

operating costs, and further achieve cost reduction

and efficiency. As a leading supply chain

management solution and scene logistics service

provider in China, Goodaymart Supply Chain deeply

integrates the new generation of information

technology with the service industry. It builds a full-

scene and all-factor digital service system of the

supply chain through the comprehensive

interconnection of the logistics system.

3. CASE ANALYSIS

The digital service system of Gooday’s supply chain

is mainly reflected in three aspects: the technological

logistics platform, the digital solution capability, and

the scenario-based cloud service experience platform

capability.

3.1 Technological Logistics Platform

Goodaymart’s technology-based logistics platform is

driven by digital technology and realizes logistics

infrastructure and service architecture by building a

nationwide warehouse system, distribution system

and integrated service network. Goodaymart provides

customers with comprehensive and multi-scenario

solutions, improving client supply chain management

efficiency. At present,

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Goodaymart Supply Chain has built a three-level

distributed storage network covering the country,

covering more than 30 provinces and 130 prefecture-

level cities. Through self-build and lease, the

company quickly deployed more than 990

warehouses, including central, regional, and

transshipment centers. These warehouses have

formed a national radiation network, of which Jimo,

Huangdao, Jiaozhou and other places are intelligent

warehouse groups. In these warehouses,

Goodaymart's supply chain uses intelligent robots,

large automatic guided vehicles, and other

customized intelligent machines and equipment. In

addition, the warehouse is integrated with artificial

intelligence technology, including intelligent

inventory, picking, handling, and digital twin

technology, to carry out intelligent transformation of

the warehouse, thereby improving the efficiency of

storage operations. In addition, to meet customers'

specific needs for intelligent warehousing,

Goodaymart Supply Chain also provides advanced

intelligent warehousing solutions to realize the

transformation from traditional manual and

mechanized warehousing management to automated

and intelligent modern logistics warehousing

management. This transformation increases the

efficiency and capability of warehousing operations

and fuels advances in digital logistics.

Goodayday supply chain has established a

nationwide distribution network. The company

operates tens of thousands of transport lines,

dispatching a huge team of cooperative vehicles to

ensure the vast majority of the country's provinces,

municipalities, autonomous regions and prefecture-

level cities comprehensive coverage. In addition, with

the continuous expansion of cross-border logistics

services, GoodayMart’s supply chain has integrated

numerous sea, rail and air routes, focusing on

customer needs to build an international logistics

network that can serve multiple countries and regions

worldwide. In terms of end-distribution and

installation services, Goodaymart's supply chain

achieves end-service deep into villages and

communities through service outlets. The company

has established a nationwide service network,

ensuring the fast fulfillment of logistics and

improving end users' distribution and installation

experience.

3.2 Digital Solutions

Goodaymart’s digital supply chain provides solutions

based on digital technology, integrating and utilizing

all resources to provide customers with full-chain

services.

The digital supply chain can realize the data

collection of each link in logistics service and

optimize the supply chain operation by data analysis.

In addition, the system integrates core business

processes such as order management, warehousing,

transportation and end service and integrates business

management platforms such as OMS, WMS, WCS,

TMS and CDK to achieve real-time data acquisition

and tracking management of supply chain nodes.

Timely data collection helps optimize logistics routes

and resource allocation, providing customers with

highly informationized, visual and standardized

comprehensive solutions. In addition, the big data

analysis platform within the system can summarize

and monitor business data, provide intelligent

decision support and visual reports, and provide data

support for the fine management of the supply chain,

thereby improving the overall operational efficiency.

Especially in the VMI project,

Goodaymart's supply chain focuses on full-link

innovative service solutions such as product

warehousing, in-warehouse management, and

outbound storage, and it applies multiple types of

intelligent devices to realize the full fine management

of raw materials.

Goodaymart Supply Chain has revolutionized the

warehousing process through an innovative digital

system, achieving efficient management of the whole

process from inbound to outbound. As the first link in

the supply chain, the Goodaymart supply chain has

significantly improved its operational efficiency by

going paperless." The "Storage Reservation" system

allows drivers to book online and arrange loading and

unloading flexibly, reducing the safety risk caused by

vehicle backlogs. In the material inspection link,

Goodaymart's supply chain collaborates with the

factory side to advance the inspection to the VMI

warehouse and improve the reputation of the full-link

operation through the "blind inspection" mode. In the

shelf link, intelligent shelf guidance replaces the

management mode that relies on manual experience,

reduces the complexity of work, and improves the

accuracy of warehouse location and storage

utilization. Goodaymart Supply chain uses the VMI

management system to achieve standardized report,

product, and personnel management. The sharing of

real-time inventory information solves the problem of

information opacity and helps factories realize visual

inventory management. The intelligent inventory

technology realizes automatic data collection, and the

accuracy of inventory counting reaches 99.99%." The

"Tianye" automatic capture logic algorithm realizes

Digital Transformation in the Logistics Industry: A Case Study of Goodaymart Logistics

153

7*24H early warning supervision, ensuring the

compliance and efficiency of warehousing

operations. The efficiency of the warehousing process

is crucial to the entire warehousing operation.

Goodaymart's supply chain has built an integrated

electronic sorting system, which is connected to

factory data, automatically generates a picking list,

and improves the picking efficiency by 30% through

intelligent sorting technology. Intelligent vehicle

allocation improves vehicle loading rate and reduces

transportation costs. The full-link delivery control

tower realizes the visual management of the whole

process. With the promotion of the digital wave,

Goodaymart’s supply chain actively embraces

changes, constantly innovates service solutions,

changes how it connects with customers, and

reshapes its operation and management model. The

transformation and upgrading of Goodaymart's

supply chain will create more possibilities for

developing the supply chain industry. In terms of

integration, the Goodayday supply chain has

comprehensively upgraded storage links through

digital innovation, from storage reservation, material

inspection, and shelf guidance to warehouse sorting;

each link reflects the efficiency and high accuracy

brought by digitalization. Through the VMI

management system and the full link control tower,

Goodaymart’s Supply chain not only improves its

operational management efficiency but also injects

new vitality into the development of the supply chain

industry. With the continuous progress of digital

technology, Goodaymart’s supply chain will continue

to lead the industry in a more efficient, smarter and

more convenient direction.

3.3 Scenario-Based Cloud Service

Experience

Goodaymart Supply Chain has been committed to

providing comprehensive home appliance supply

chain management services for Haier and other

enterprises since its inception. It has accumulated

valuable experience. As one of the few enterprises in

the market that can provide end-to-end supply chain

management solutions from manufacturing to online

and offline distribution channels and end-user

scenario services, Goodaymart Supply Chain has

demonstrated excellent service capabilities in many

fields. In terms of consumer supply chain services,

Gooday Supply Chain provides customers with one-

stop solutions, covering program design, warehouse

management, transportation, end-distribution,

installation, and reverse logistics to improve

customers’ operational efficiency and user

experience in the circulation link. For manufacturing

supply chain services, Goodayday Supply Chain is

deeply involved in customers’ production and

marketing coordination and purchase order

management, providing raw material suppliers with

services such as collection, shipping capacity, VMI

and circular packaging while providing

manufacturing enterprises with line warehouse

management and JIT distribution, enhancing

customers' flexible and agile manufacturing

capabilities. In the field of international supply chain,

Goodaymart Supply Chain provides "end-to-end"

solutions, including door-to-door pickup,

warehousing, booking agent, customs clearance,

customs inspection and transportation services,

covering sea, air, land and multimodal transportation

and other diversified transportation modes. In terms

of transport capacity services, Goodaysmart supply

chain uses Internet technology to build a network

freight platform, integrate dispersed cargo transport

needs and social transport capacity resources, and

provide shippers with nationwide trunk transport

capacity services. Goodaymart Supply Chain is also

actively expanding its ecological innovation business,

including last-mile scene service and after-vehicle

ecological business. The last mile service focuses on

the needs of end users in the home, fitness, travel and

other scenarios, providing personalized solutions and

value-added services.

The aftercare ecological business focuses on the

life cycle management of commercial vehicles,

providing value-added products and services such as

oil products, insurance and tires.

4 CONCLUSIONS

In the era of the digital economy, digital

transformation is an inevitable choice and a new

opportunity for enterprise development. This paper

studies the changes in various stages of Goodaymart's

digital transformation. This found that in

GoodayMart, the digital transformation of the supply

chain can improve the operational efficiency of the

entire organization, and the digital transformation has

a positive impact on the development of the logistics

industry.

The findings have the following implications.

First of all, Goodaymart's supply chain, as a pioneer

in the industry, not only enhances its service

capabilities through continuous upgrading and

application of digital technology but also contributes

to the intelligent transformation of the industry.

Through an in-depth understanding of industry

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154

customer needs, the company provides customized

solutions to help customers achieve cost-

effectiveness optimization while setting a new service

benchmark for the logistics industry, leading the new

trend of service innovation. Secondly, different stages

of supply chain digital transformation will have

different strategic directions, so managers should

make a good strategic layout and clarify the

objectives of different transformation stages.

Strengthen digital capabilities, master the application

scenarios of various technologies in a targeted

manner, and consolidate the transformation support

architecture. In addition, digital transformation

requires enterprises to continuously develop new

solutions and operating models, creating new vitality.

For the government, the key is to ensure the

implementation of policies and, on this basis, to

further promote and support enterprises in carrying

out digital transformation to avoid enterprises in the

process of development bottlenecks. The government

needs to closely track all stages of enterprise

transformation, identify and solve key challenges and

problems in the transformation process, and provide

precise assistance and guidance. In addition, local

governments should formulate differentiated

incentive and subsidy policies based on the

characteristics of local enterprises and regional

economic conditions to stimulate the enthusiasm of

enterprises for digital transformation. The logistics

and supply chain industry is reshaping in the

technological revolution and industrial change.

Overall, the government plays an important role in

promoting the digital transformation of enterprises,

and companies like Goodaymart Supply Chain

provide practice cases and impetus for the

transformation and upgrading of the industry through

continuous technological innovation and service

upgrading. The concerted efforts of the government

and enterprises will jointly promote the logistics and

supply chain industry in a more efficient and

intelligent direction.

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