The modern pharmaceutical industry chain in Shanxi Province is strengthening and advancing further. On October 18th, Cainiao Logistics Technology and the first batch of “chain-leading” enterprise Zhendong Group in Shanxi Province held a strategic cooperation signing ceremony. According to the agreement, Zhendong will introduce Cainiao Logistics Technology’s leading digital supply chain capabilities and algorithmic capabilities, and deepen cooperation in the fields of supply chain digital transformation consulting, architecture design, OTWB system construction, sales forecasting, intelligent replenishment, inventory management, and more. Meanwhile, they will also expand cooperation in logistics automation, Internet of Things technology, green sustainability, and other fields to jointly promote the upgrading of pharmaceutical logistics digitalization.

Modern pharmaceuticals are one of the first ten key industrial chains identified in Shanxi Province. Established in 1993, Zhendong Group’s businesses cover four major sectors: “Western and Chinese pharmaceuticals, health functional foods, health care products, and traditional Chinese medicine planting.” It owns eight major industrial enterprises including Changzhi Zhendong, Datong Taison, Tunliu Wuhe Tang, and Taiyuan Anxin, and has 32 subsidiaries. In 2022, with outstanding advantages in the modern pharmaceutical field, Zhendong Group became one of the first 20 “chain-leading” enterprises in Shanxi Province.

Song Xiaojun, General Manager of Zhendong Group’s Logistics Center, said, “Strengthening and supplementing the chain are the responsibilities that Zhendong Pharmaceutical should have as a ‘chain-leading’ enterprise. Currently, there are pain points in the pharmaceutical industry such as scattered warehouse management systems, lack of systematic support, slow logistics operations, and heavy reliance on manual operations. Cainiao has accumulated profound expertise in digitalization, and Zhendong Group hopes that both parties can join forces to apply Cainiao Logistics Technology products in multiple links and full chain applications such as entry logistics and finished product logistics, further promoting the digitalization upgrade of the pharmaceutical supply chain.”

Cainiao has been deeply involved in the logistics industry for many years, applying its “technological genes” to every aspect of logistics operations, and has formed leading products and capabilities in digital supply chain, automation, and Internet of Things. Based on the recognition of Cainiao’s logistics technology capabilities, in the initial phase of cooperation, industrial and commercial companies under Zhendong Group such as Yichun Kanglang, Anxin Pharmaceuticals, Changzhi Pharmaceutical, and Taiyuan Medical Trade will deploy Cainiao WMS(Warehouse Management System), TMS (Transportation Management System), SRM(Supplier Collaboration Management System), and other logistics technology products to standardize the warehouse storage operations of Zhendong Pharmaceuticals and strengthen the management of pharmaceutical raw materials and finished products to improve warehouse logistics operation efficiency.

In the future, the two parties will also carry out cooperation in logistics automation, Internet of Things technology, green sustainability, etc. Zhendong Group will promote the application of Cainiao AS/RS (Automatic Storage and Retrieval System), dense storage technologies such as multi-lane storage, and automation technologies such as cross-sorting and unmanned handling in its own business. They will also facilitate the landing of Cainiao RFID (Radio Frequency Identification), Lemo PDA, and other Internet of Things products in Zhendong’s business segments, further expanding cooperation in areas such as photovoltaic warehouses, new energy vehicles, green packaging, and reusable containers, thereby creating a digital and green pharmaceutical logistics supply chain.?

Li Kun, CEO of Zhendong Group, expressed at the signing ceremony that Zhendong Group is optimizing the pharmaceutical industry chain, exploring various new cooperation models to supplement, extend, build, and strengthen the chain, and striving to become the most influential “chain-leading” enterprise in the pharmaceutical industry. This cooperation with Cainiao Logistics Technology will not only bring time efficiency, quality efficiency, labor efficiency, cost efficiency, and management efficiency to Zhendong Group but also is expected to demonstrate the digitalization of the pharmaceutical industry supply chain.