{"id":5236,"date":"2022-03-07T03:10:38","date_gmt":"2022-03-07T11:10:38","guid":{"rendered":"https:\/\/en.pingcap.com\/?post_type=case-study&p=5236"},"modified":"2025-05-06T19:52:40","modified_gmt":"2025-05-07T02:52:40","slug":"real-time-insights-reduce-per-order-costs-by-25-percent","status":"publish","type":"case-study","link":"https:\/\/www.pingcap.com\/ko\/case-study\/real-time-insights-reduce-per-order-costs-by-25-percent\/","title":{"rendered":"Real-time Insights Reduce per Order Costs by 25%"},"content":{"rendered":"

ZTO Express (NYSE: ZTO) is one of the largest delivery companies in the world. ZTO delivered 17+ billion parcels\u2014a 20.4% market share in 2020. Accelerated by Covid, the significantly increased loads of parcels are putting the supply chain to the test. At the same time, logistics companies are competing over speed and service, especially during peak shopping days or weeks.\u00a0<\/p>\n\n\n\n

<\/span>Supply chain industry challenges<\/span><\/h2>\n\n\n\n

Higher customer satisfaction bar<\/h3>\n\n\n\n

With digital front-end devices like smartphones, customers need a personal page that shows order histories and tracks their parcels. On time performance (OTP) and real-time tracking becomes the key differentiating factors for choosing logistics companies.  <\/p>\n\n\n\n

ZTO uses 100+ information systems to fully digitize parcel tracking. They collect billions of data points to improve customer experience with real-time parcel tracking on any device at any time. The central parcel information system also monitors the overall parcel volume, and identifies the peaks and the hot regions for last mile rerouting. A delayed parcel means late fees, so accurate data monitoring is very important. <\/p>\n\n\n\n

Higher operational cost<\/h3>\n\n\n\n

The overall cost for logistic companies includes transportation costs, inventory carrying costs, and administration costs. Big data and a secondary distribution logistic system with true real-time dashboards and instant scheduling play important roles, because they reduce all three costs. <\/p>\n\n\n\n

Tens of thousands of tracks support ZTO\u2019s delivery network. Packages are stored in the distributor center, and packages that go to similar destinations are merged and dispatched together. ZTO\u2019s <\/strong>secondary distribution logistic system predicts the route each parcel will take. While the parcel is enroute, the system captures any changes in parcel data, which enables real-time diagnostics based on fresh data. Therefore, ZTO needed to handle large amounts of data with low latency, and they built a wide table with more than 70 fields. <\/p>\n\n\n\n

<\/span>Exadata could not meet ZTO\u2019s needs<\/span><\/h2>\n\n\n
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Before ZTO adopted \ud2f0DB<\/a>, the data collected by the 100+ information systems was synced to the <\/strong>central parcel information system through Spark and then stored in Oracle. ZTO had API and application data services to provide external service capabilities.<\/p>\n\n\n\n

As ZTO\u2019s business workload accelerated, their IT architecture had trouble keeping pace with the exponential growth of data volume and high concurrent updates with reasonable hardware upgrading cost. <\/p>\n\n\n\n

Also, their architecture couldn\u2019t meet the requirement for real time diagnostics based on large amounts of data. These diagnostics are the foundation of monitoring and scheduling.<\/p>\n\n\n\n

In summary, ZTO\u2019s challenges were:<\/p>\n\n\n\n