Chongqing Xuefeng Refrigerates Logistics Co., Ltd.

Chengdu, China Site Visit

January 13, 2014

By

Eric Xiang

Key Personnel:

Mr. Zou Yaohui, General Manager

Chongqing Xuefeng Refrigerates Logistics Co., Ltd. is a third-party logistics provider with a cold chain focus in West China. The company was founded in 1997 and is headquartered in Chongqing, China. A total of 150 employees work in Chengdu, Chongqing, Shanghai and Xi’an,

Xuefeng Logistics’ core business is lane transportation from East China to West China and local distribution in West China. The main lanes are from Shanghai to Chongqing, Chengdu and Xi’an. Xuefeng Logistics owns 96 temperature-controlled trucks with various temperatures. Some of the truck temperatures are 1-4°C, some are -18°C and others are -27°C. All of its truck drivers are company drivers. All of the trucks are GPS equipped to ensure good management. Each truck has a temperature printer, so temperature records can be printed if required by the customer.

Xuefeng Logistics has warehouse facilities in Chongqing, Chengdu and Shanghai totaling 25,000 square meters, which has made Xuefeng Logistics very competitive in West China.

Xuefeng Logistics has a well-known customer base. KFC, McDonald’s, Starbucks, Wal-Mart and Auchan are customers. In Chengdu, KFC is using its warehouse. KFC has a team to manage the warehouse operation and distribution. According to Mr. Zou Yaohui, KFC will transfer all the operation jobs to Xuefeng Logistics as its distribution service is meeting the multinational companies’ requirements.

For distribution, there are two types. One type is distributing to customers’ own brand stores such as KFC and McDonald’s, and the other type is distributing to retailers’ stores like Wal-Mart and Auchan. For distribution to retailers’ stores, Xuefeng Logistics provides a shipping alert to each store before distributing in the day time. This allows the store to arrange for delivery in advance so waiting too long for unloading can be avoided. For distribution to the own brand stores, Xuefeng Logistics can arrange night time distribution. Xuefeng Logistics’ staff is allowed access to each store; therefore, the customer’s staff does not have to wait. There is a lot of trust between Xuefeng Logistics and these customers. This also saves on manpower costs for the customers.

According to General Manager, Mr. Zou Yaohui, Xuefeng Logistics has substantial market share in West China. It will invest more in East China and North China to build a strong network. A South China network is to come later. For further development, Xuefeng Logistics is open to investors or partners, but it will be very careful to select the right partner.

Xuefeng Logistics is a key player for cold chain in West China. With a solid customer base and good reputation in the market, it will have a smooth growth and development in the future.