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            Deppon Express: Cultivating Enterprise's Core Competitiveness through Digital Transformation

            2019-04-09

            Data Brief

            More than 77% of computer room space saved

            Resource utilization rate increased by nearly 30%

            Comprehensive storage costs decreased by about 20%

            Client's Testimony

            Whoever fulfills a task highly efficiently with lower costs will win higher profit per customer. Therefore, the logic of express digitalization is to find out the steps in the process that can improve efficiency and reduce costs, and simplify and solve them by digital means. Many people say that we input too much in direct-sale outlets and vehicles, but these are not the barriers that we cannot break through. As long as we have the core technology, it's difficult to surpass us.

            Zhong Zhilong

            Vice President of Deppon Logistics Co., Ltd. and President of Deppon Technology Group

            Relevant products: Storage, New Network (SDN&NFV), Software

            Relevant Solutions: Interconnectivity, Cloud Computing, Transportation

            The development of digital technology has brought an unprecedented impact on the operation and management of the express industry. Driven by business and technology, Deppon Express cooperates with New H3C to optimize the IT and network platform, so that data can play a new role in the full life circle of express delivery.

            On November 11, 2018, the continuously climbing volume of business on e-commerce platforms set a new record in China's express industry. On that day, express enterprises handled 416 million postal/express packages, up 25.68% year-on-year, amounting to 3.2 times the daily handling capacity. With competitors flooding into the e-commerce industry, express enterprises are faced with the dilemma of high pressure in business peak hours, decline in operating profits, and fierce homogeneous competition. In this context, only by relying on cutting-edge technology and digital technology, improving efficiency and cutting the cost can we stand out in the digital era of reform and remodeling.

            Facing the increasingly fierce market competition, Deppon Express, founded in 1996, tries to rely on digital technology to achieve delicacy management, consolidate our competitive advantage in the less-than-carload market, and provide users with high-quality and efficient express services. To further improve production efficiency, reduce O&M costs and monitor our business outlets scattered across China in real time, Deppon Express has joined hands with New H3C Group (New H3C) to upgrade the IT and network support platform, so that we can initiate our digital transformation in the express industry based on data.

            In a time of change, Deppon makes digital technology the primary productive force

            In Deppon's Digital Twin Center, there is a screen that can display the real-time panoramic videos of 126 out-fields and 10,641 outlets of Deppon nationwide and the real-time data on such core indicators as logistics, outlets, channels and customers. It has become the basis for Deppon Express to allocate resources, predict risks and optimize management. Depending on the data insight attributed to the data analysis system at the background, Deppon Express has realized the intelligent transformation of the whole business process from order to warehousing, and then to distribution, and the automatic warning of the risk factors. It ensures that tens of millions of express lines work orderly and efficiently in peak hours, and each package is delivered to customers timely and safely.

            But in the past, this industry-leading express enterprise has also been perplexed by the difficulty in traditional IT expansion, lacking of automatic optimization tools, heavy O&M workload and other technical challenges and troubles. Faced with the development opportunities and loading pressure brought by the "Double 11" and other online shopping festivals, Deppon Express uses the technology and digital tools to improve production efficiency, reduce operating costs, and explore new growth points for Deppon in the digital era. And the outstanding operation ability brought by digital technology has also enabled Deppon Express to produce considerable earnings.

            From storage to network, New H3C safely "delivers" digital technology

            One of the core objectives of IT upgrade of Deppon Express is to relieve the business pressure during "Double 11" and other peak hours, which requires the new data center infrastructure to have strong performance and the dynamic resource optimization ability in business peak hours. To this end, New H3C assists Deppon Express in providing all-flash storage, improving the dynamic expansion ability of resources. High IOPS support high-speed input and output of data and helps Deppon Express save more than 77% of computer room space, increase resource utilization rate by nearly 30%, and reduce the comprehensive storage costs by about 20%. This efficient and stable network hub can quickly process massive data, alleviate the system load pressure caused by the surging business volume, and lay a solid and reliable foundation for whole-process logistics data monitoring, real-time warning, rapid positioning, and quick feedback within seconds.

            Deppon Express launches a project for constructing a dual-active data center to protect the core data and improve the anti-risk capability of the data center. New H3C's network equipment plays an important role in constructing the dual-active data center of Deppon Express. At the same time, Deppon Express adopts the New H3C's unified backup system to prepare data backup and disaster recovery solutions, greatly enhancing the reliability of the data.

            "Technology has strong competitive barriers and core competitiveness. Many people say that we input too much in direct-sale outlets and vehicles, but these are not the barriers that we cannot break through. As long as we have the core technology, it's difficult to surpass us," Zhong Zhilong said. He is the vice president of Deppon Logistics Co., Ltd. and president of Deppon Technology Group. Today, Deppon Technology Group under Deppon Logistics Co., Ltd. has 138 IT systems, 57 IT projects and 5 development platforms, and annual investment on which reaches more than RMB 500 million. Deppon Technology Group also continues to invest in IT resources, allowing technology to accelerate the efficiency of express delivery.

            The cooperation between New H3C and Deppon Express is a successful practice of combining digital technology with the express industry. Looking forward to the future, Deppon Express will continue to increase its investment in IT resources, trying to further integrate technology into express delivery. New H3C will also serve as an important partner of the express industry, give full play to its due value, and continue to escort the express industry towards the digital transformation journey.

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