CFLP Case Study
KJYY Pharmaceutical Modern Logistics Green Journey
Opportunities and Challenges on the Dual Carbon Path - A Deep Case Analysis of Enterprise Green Transformation Strategic Decision
Case Information
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Executive Summary
In early spring 2024, Zhou Shunlai, Deputy General Manager of KJYY Pharmaceutical Modern Logistics Company, faced a critical decision: whether to proceed with a "Dual Carbon" energy-saving and emission-reduction project with a total investment of nearly 29 million yuan. This comprehensive transformation plan, consisting of five core projects including smart logistics boxes, magnetic levitation air conditioning, and photovoltaic energy storage, represented both the company's ambition for green logistics transformation and brought enormous financial pressure and operational risks.
Case Narrative
The Decision Moment
One afternoon in early spring 2024, Zhou Shunlai, Deputy General Manager of KJYY Pharmaceutical Modern Logistics Company, sat in his spacious office with a thick report spread before him—"KJYY Company's Dual Carbon Strategy and Key Energy-Saving Emission-Reduction Project Implementation Plan." This report embodied nearly three months of effort by him and the project team, detailing the grand blueprint for the company's green logistics development over the next few years.
The smart logistics boxes, magnetic levitation air conditioning, photovoltaic energy storage, and other projects described in the report filled him with excitement, but the total investment budget of nearly 29 million yuan summarized at the end of the report weighed heavily on his mind like a boulder.
"Tomorrow, he would present this plan to the group's board of directors. Although the directors had expressed principled support for the 'Dual Carbon' strategy, they were more concerned about: Could such a massive investment bring the expected returns? How could these seemingly independent projects form synergies? In the fierce market competition, was this 'green investment' a 'weapon' that could make KJYY stand out, or a 'burden' that might drag down financial performance?"
Company Background: Industry Giant's "Green Anxiety"
KJYY Pharmaceutical Modern Logistics Company is the leading state-owned third-party pharmaceutical logistics enterprise in East China. With its 240,000 square meters of modern warehouses, nearly 1,000 controlled transport vehicles (including over 60 specialized refrigerated trucks), and a distribution network covering over 30,000 terminals, KJYY has established a professional and reliable benchmark image in the industry.
Birth of the Green Blueprint: From Research to Plan
To transform the grand vision into executable actions, Zhou Shunlai led the establishment of an "Energy-Saving Emission-Reduction Project Team" composed of heads of key departments. Team members included Wang Daxing in charge of warehouse operations, Zhao Xiaobing in charge of transport management, Sun Li in charge of equipment technology, and Li Xiaogang in charge of procurement and supply chain.
Five Core Projects
Smart Logistics Box Project
Project Highlights
- • Recyclable, traceable PP material smart logistics boxes
- • Built-in RFID chips for end-to-end tracking
- • Box opening monitoring, cloud management
Investment Benefits
- • Investment: 4.765 million yuan
- • Annual savings: 5.04 million yuan
- • Payback period: <1 year
Magnetic Levitation Central Air Conditioning Energy-Saving Project
Technical Highlights
- • Oil-free, frictionless operation
- • High COP value, low noise
- • Long lifespan, low maintenance cost
Investment Benefits
- • Investment: 9.028 million yuan
- • Annual savings: 5.28 million yuan
- • Payback period: 1.7 years
Energy Management Contract (EMC) Project
Model Highlights
- • Zero initial investment
- • Share energy-saving benefits with service providers
- • Professional energy management services
Investment Benefits
- • Investment: 0 yuan
- • Annual revenue: 1.04 million yuan
- • Risk: Low
Warehouse Temperature and Humidity Intelligent Control System
Technical Highlights
- • Compliant with GSP regulatory requirements
- • Intelligent, precise control
- • Based on real-time data and algorithms
Investment Benefits
- • Investment: 0 yuan (bundled)
- • Annual savings: 2 million yuan
- • Compliance: High
"Photovoltaic + Energy Storage + New Energy Vehicles" Integration Project
Technical Highlights
- • Self-generation and self-consumption, surplus power to grid
- • Green energy microgrid
- • 100 new energy transport vehicles
Investment Benefits
- • Investment: 18.8 million yuan
- • Annual savings: 3 million yuan
- • Payback period: 6.3 years
Zhou Shunlai's Dilemma: The Decision Moment
Core Challenges
Priority Issues
Total investment of nearly 29 million yuan, can the company's cash flow handle launching all projects at once? How should they be prioritized?
Synergy and Conflicts
How to maximize synergies between projects? How to coordinate construction period conflicts?
Risk Assessment
Benefit calculations are based on ideal conditions, how to control risks in actual operations?
Value Transformation
How to transform "green costs" into "business value"? Are customers willing to pay for "green"?
Classroom Discussion Questions
Strategic Level Analysis
- 1. What do you think is the fundamental driving force behind KJYY's promotion of the "Dual Carbon" energy-saving and emission-reduction project? (Policy pressure, social responsibility, cost control, market competition, customer demand, etc.) Please analyze the importance of each driving force.
- 2. As a large state-owned enterprise, what unique advantages and challenges might KJYY face when implementing such innovative projects?
- 3. How do you evaluate the overall plan proposed by KJYY? Is it strategically leading, timely, or overly aggressive?
Project Management and Decision Making
- 4. If you were Zhou Shunlai, how would you prioritize these five projects? Please establish an evaluation model.
- 5. Please evaluate the potential risks of each of the five projects. For the project you consider highest risk, propose specific risk avoidance or mitigation measures.
- 6. Analyze the synergistic effects between projects. How should Zhou Shunlai present an integrated plan of "1+1>2" to the board?
Technology Innovation and Pharmaceutical Logistics
- 7. Using "Smart Logistics Box" as an example, analyze how technological innovation profoundly changes traditional pharmaceutical logistics packaging and traceability models?
- 8. How does the "Warehouse Temperature and Humidity Intelligent Control System" balance GSP compliance and energy-saving emission reduction?
- 9. Considering the characteristics of new energy vehicles, discuss their application prospects and limitations in pharmaceutical logistics.
Business Model and Professional Service Innovation
- 10. How should KJYY transform this large-scale "green upgrade" into its core market competitiveness?
- 11. For different types of customers, how should KJYY customize and market its new green logistics services?
- 12. In the long run, how will this investment reshape KJYY's brand image and industry position?
Improvement Suggestions
Implementation Strategy
Recommend adopting "pilot first, step-by-step promotion." For example, choose one or several mature distribution routes as pilots for the "Smart Logistics Box" project to verify the feasibility of its recycling management model.
Risk Management
Establish dynamic risk monitoring and response mechanisms. The plan should include a detailed risk matrix, clearly defining the probability, impact level, responsible person, and response plan for each risk.
Enhanced Integration
Build a unified "Smart Green Logistics Operations Platform." The data flows of the five projects should be integrated, creating a central control platform that integrates energy management, vehicle dispatch, and temperature and humidity monitoring.
Value Marketing
Transformation from "cost center" to "value center." KJYY should establish a dedicated marketing team to quantify energy-saving and emission-reduction achievements into customer-perceivable value.
Deep Dive into Case Study
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