SF Express Revolutionizes Its Operations Planning Strategy Using Operations Research.

This article focuses on SF Express’s transformation of its logistics network planning from a manual, regional process to a centralized, operations research (OR)-based system starting in 2018. SF Express, China’s leading integrated logistics provider, developed advanced mathematical models and algorithms to optimize its intercity air and ground networks as well as its intracity feeder and same-day delivery networks, addressing large-scale, complex constraints such as service-level agreements, fleet capacities, and hub operations. The centralized OR-driven approach has generated over $1 billion in cost savings, reduced delivery times for more than one billion parcels, and cut millions of tons of carbon dioxide equivalent emissions since implementation. The project also fostered organizational innovation by integrating OR experts with network planners, improved decision-making efficiency, and contributed to academic research and industry standards, with potential applicability to other logistics providers globally.