China is well known as a "World Factory", where logistics is one of the key service industries. The market of logistics in China is huge. The logistics cost is over 18% of Chinese GDP, and it is rapidly growing at 14% increasing rate yearly. However,the logistics industry in China is inefficient and fragmentary. The rate of total logistics cost of entire GDP is even twice times bigger than developed countries. IBM is now working with the Chinese Government and local business partners to deliver a "Smarter Logistics Cloud" by applying IBM technologies such as Smarter Commerce, Cloud, Business Optimization, Business Analytics, Mobile technologies etc. Ningbo is one of the largest ports in China. We will implement in market innovation and start the transformation of service industry from Ningbo, roll it out it China, and eventually spread out to other emerging countries.